Issue link: https://www.e-digitaleditions.com/i/138053
Recruitment RPO: A DICHOTOMY New deals are rolling in, but overall activity is experiencing a decrease. By Rajesh Ranjan Although the concepts of high adoption and diluted growth may seem somewhat contradictory, these two key findings from Everest Group's 2013 recruitment process outsourcing (RPO) annual report aren't as diametrically opposed as they appear on the surface. The RPO Annual Report 2013: Dichotomy of Market Exuberance and Subdued Economy frames the high-level story: 2012 witnessed a record number of new deal signings, but also a dramatic decrease in hiring on both sides of the Atlantic, slowing market growth to approximately 12 percent. Here, we'll review the report's chief areas of focus and the multiple dynamics shaping the RPO market in 2013 and beyond. [22] HRO TODAY MAGAZINE | JUNE 2013 The deals. Looking at RPO engagements that included a minimum of four recruitment processes, the number of deals signed in 2012 increased by roughly 50 percent over 2011, but the average number of hires per deal plummeted by more than 100 per deal in the same timeframe. Existing deal sizes were also affected as buyers cut down on their hiring numbers, and some contracts were terminated prior to contract expiration due to fully ceased or largely curtailed hiring activity. On the positive side, non-renewals decreased by 5 percent between 2011 and 2012. While large enterprises were previously the strongest adopters of RPO, the mid-market is increasingly embracing the model and its intrinsic, multi-pronged value.