The Growing Importance of Outsourced Recruiting

Outsourced hiring
Talent Acquisition

The job market is constantly evolving, and as businesses compete for top talent, they're increasingly turning to outsourced recruitment to streamline their hiring process. In this post, we will explore the growing importance of outsourced recruiting and the reasons why it is becoming an increasingly popular choice for businesses.

According to a report by Grand View Research, the global recruitment process outsourcing (RPO) market size was valued at USD 5.77 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 17.9% from 2021 to 2028. This growth is due to the increasing adoption of RPO services by companies to reduce their recruitment costs, improve the quality of hires, and enhance the overall recruitment experience.

Reducing the Cost of Recruitment?

Outsourcing recruitment can help businesses reduce the cost of recruitment. The process of hiring and training new employees can be expensive, which can put a significant strain on a company's resources. According to a survey by the Society for Human Resource Management (SHRM), 72% of organizations in the United States outsourced all or part of their recruitment process in 2020, up from 65% in 2019. By outsourcing recruitment, businesses can benefit from economies of scale and reduce the cost of hiring, screening, and onboarding new employees.

In addition, outsourcing recruitment can help companies avoid the costs associated with unfilled positions. When a position remains unfilled for an extended period, it impacts the productivity and effectiveness of the team, leading to reduced revenue and higher costs. Outsourced recruiters can help to fill positions faster, reducing the costs associated with unfilled positions and improving business performance.

Access to a Wider Pool of Candidates

Outsourcing recruitment can also provide businesses with access to a wider pool of candidates. According to Grand View Research, recruitment agencies and outsourced recruiters have extensive networks and databases of potential candidates, making it easier for businesses to identify and attract top talent. This is particularly beneficial for businesses in niche industries or those seeking candidates with specific skills or experience.

By outsourcing recruitment, businesses can also benefit from the expertise and knowledge of experienced recruiters. According to SHRM, 72% of organizations that outsourced recruitment in 2020 did so to improve the quality of hires. Recruiting agencies often have a deep understanding of industry-specific hiring trends, allowing them to identify candidates who may not be actively seeking new opportunities. This can be particularly useful when recruiting for senior-level or executive positions, where the pool of suitable candidates may be limited.

Improving the Efficiency of the Recruitment Process

Recruiting is a time-consuming process that can take up a significant amount of a company's resources. By outsourcing recruitment, businesses can benefit from improved efficiency and a streamlined recruitment process. According to Grand View Research, outsourcing recruitment allows businesses to focus on core business operations, while the outsourced recruiter handles the hiring process. This can be particularly useful for small and medium-sized businesses that don't have dedicated HR staff.

In addition, outsourced recruiters can help businesses to reduce the time it takes to fill positions, allowing them to onboard new employees more quickly and efficiently. According to SHRM, 66% of organizations that outsourced recruitment in 2020 did so to improve the time-to-fill metrics. This can be particularly useful when a business is experiencing rapid growth or has an urgent need to fill a critical position.


As the job market becomes increasingly competitive, businesses are under more pressure than ever to attract and retain top talent. Outsourced recruiting has become a popular choice for businesses seeking to improve the efficiency of their recruitment processes, reduce costs, and access a wider pool of candidates. If you're a business owner, hiring manager or a TA department in need of scaling,, it's worth considering the benefits of outsourcing recruitment. Whether you're looking to reduce recruitment costs, access a wider pool of candidates, or improve the efficiency of your recruitment process, outsourced recruiting can help to streamline your hiring process and improve your chances of attracting and retaining top talent.

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