Nelson Hall RPO Forecasts

It’s good news for RPO players. Nelson Hall, a leading independent BPO analyst firm, in its latest research found that RPO is the fastest growing service emerging in support of organizations and talent management requirements. It forecasts the RPO industry to see an annual growth rate of 37% and become a $7 Billion market by 2010. The research also finds the growth to be broad-based, not just restricted to the United States, but emerging markets such as India also to have their piece of the pie.
Key findings revealed in the Nelson Hall report include:
Vendors need to be able to perform an integral role in the development, implementation and execution of their clients, Talent Management and Workforce Planning Strategy.
Standalone RPO represents a much greater share of the market than does RPO provided as part of a multi-process HRO offering - it is also experiencing the highest growth rates.
Clients are increasingly looking for a variable cost structure to pay for services based on usage.
Vendors need to be able to scale their workforce to meet demand for peaks and valleys.
Most current activity is in serving large companies. However, as the market is beginning to mature, increased demand is being send from small and mid-sized companies.
Service providers should provide a service that includes an onsite presence - globally today, only 31% of service providers work onsite but this proportion is expected to increase in conjunction with talent acquisition demand.
Most RPO services are provided from onshore multi-client delivery centers, but offshore delivery is seeing high growth, particularly for non-client facing work.
Service providers are partnering for access to technology and for support services such as assessments and background checks. They are also partnering with other recruiting providers, particularly where they do not have a geographic presence.
Acquisitions are common as service providers look to increase their geographical expansion and to improve recruiting capabilities.
please see this for the complete News Release :
Global Outsourcing Market $7 Billion by 2010

Nelson Hall Research

Nelson Hall, a global BPO analyst firm, announced its latest research titled HR Issues and Initiatives: 2007. In this research, the firm pointed out that HR organizations are turning to be more strategic in nature, shifting their focus from cost-reduction to talent management improvement exercises, reports PRNewswire.
The summary of key HR initiatives for 2007 detailed by the firm in brief:
* Talent management initiatives, including improvements to recruitment processes, changing remuneration schemes to reduce staff turnover, new training initiatives, improved identification of, and reward for, good performance, improvements to absence management procedures, and employee turnover reduction initiatives
* Streamlining HR processes and rebalancing the location of HR service delivery. The latter involves both the development of common processes and the centralization of HR and also increasingly the introduction of local HR staff to assist in removing the barriers between HR and employees
* Cost reduction initiatives including reducing numbers of HR personnel and rationalizing benefits costs
* Sourcing initiatives to rebalance HR services between internal and external service delivery.