The Five W’s (and How) of Outsourcing | Ensuring RPO Success

If your organization is new to outsourcing, you may be confused and concerned about choosing the right outsourcing company. There are several questions you would want to be answered, such as what to outsource, where to outsource, when and how to outsource, and most importantly, who you should outsource to and why.

This article will give you an insight into the 5 W’s (What, Why, Who, When and Where) of outsourcing and how you can do it successfully.

WHAT should you outsource?

You must know what to outsource and the characteristics of the functions to be outsourced. It includes identifying critical and important functions for your business and which need to be outsourced. Understand the right opportunity for outsourcing your recruitment functions. Identifying the front and back office, admin, and compliance support functions that offer tangible business value. It is also crucial to outsource functions which can help you tap into missed opportunities and other support services which take the focus away from your core business functions.

Also See:

• Front Office Recruitment Outsourcing Services
• Mid Office Recruitment Outsourcing Services
• Back Office Recruitment Outsourcing Services

WHY should you outsource?

Outsourcing should have clear objectives and attractions. You must understand why you need to outsource and the risks involved. One of the most significant reasons to outsource is cost-efficiency. Perform a cost-benefit analysis for the proposed outsourcing functions to evaluate the approach. Other crucial factors that support outsourcing solutions for the recruitment industry include process efficiency, standardization, and productivity enhancement.

When you choose to outsource, evaluate its impact on your business’s flexibility, agility, and scalability. Outsourcing your recruitment processes will also impose additional obligations on your business, creating a risk of reputation damage, data protection and cyber security. Therefore, it is necessary to identify, assess, and manage all risks arising from your outsourcing arrangements.

• Read more: How Outsourcing Can Help Your Business Flourish

WHEN should you outsource?

When is the right time to outsource your recruitment processes to an RPO company? Identifying your business needs is the best way to decide when to outsource. It may need outsourcing support if the business needs to explore new business opportunities and plan successive growth strategies.

Many times, staffing and recruitment agencies experience a delay in their business expansion plans for the lack of adequate workforce or processes to handle additional work. This is the best time to consider recruitment outsourcing solutions. An RPO service provider can help you in business transformation and allow your team to focus on the core functions.

Outsourcing can help when there are broken functions, maintenance of core business functions becomes challenging, a shortage of skilled staff, lack of flexibility in your business processes, or when you need to overcome contractual liabilities and meet hiring timelines.

WHO should be your outsourcing partner?

You need a duly considered outsourcing strategy, a clear assessment of the functions and activities that should be outsourced, and an understanding of the associated risks. This will help you choose the right outsourcing service provider who should be assessed on various factors.

Your outsourcing partner must have a strong track record of servicing clients from your industry and showcase industry or sectoral expertise. Recruiters handling the outsourced business functions should be experienced and highly skilled to offer outsourcing services with the highest levels of efficacy.

The outsourcing company’s data security and IT infrastructure are among other crucial factors that will affect your choice of an RPO partner. An outsourced recruiting service provider with industry recognition and strong background is considered more reliable. Strict compliance with ever-changing regulations, insurance against unforeseen eventualities, depth of the company’s leadership team and their management experience are also important factors affecting the choice of an RPO service provider.

• Read more: 10 Things to Know Before Choosing an RPO Service Partner

WHERE are you outsourcing?

Where you are outsourcing is an important question that requires careful thought. You must ensure that the recruitment outsourcing service provider has the capabilities to deliver effectively and be able to carry out the outsourcing arrangement successfully.

Outsourcing to offshore recruitment agencies is hugely popular owing to several factors, including cheaper offshore work centres, talent availability, and considerable cost savings in administrative and compliance functions. The cultural alignment of the workforce is another factor that influences the decision of selecting an offshore, nearshore, or onshore outsourcing partner.

While all these considerations can help you choose the right RPO service provider, to ensure outsourcing success, you must integrate the offshore team as an extension of the onshore team.

• Read more: Why Do Staffing Agencies Hire Offshore Recruitment Services?

HOW to ensure outsourcing success?

A considerable risk associated with outsourcing arrangements is losing control and visibility of outsourced functions. To assure outsourcing success, you must have a strong risk management and internal control function. To minimize the risk of failure of outsourced functions, companies should regularly train the outsourced staff for compliance and the use of technology. Incentivising the success of outsourced recruiters can go a long way in maintaining efficiency and quality in outsourced activities.

Participation from the client’s side plays a pivotal role in outsourcing success. Clients should contribute towards the training of offshore staff. Providing them with the right tools and sharing knowledge and expertise can ensure an offshore project’s success.

You must set a realistic plan, define the timelines to achieve outsourcing objectives, and clearly communicate the same to your outsourcing partner. Communication, training, knowledge sharing and the use of the right tools are helpful in people alignment and taking the performance to the desired level. Keeping rewards to drive performance is also a great way to ensure outsourcing success.

Another crucial element for a successful outsourcing arrangement is an internal onshore champion (a SPOC) who will be responsible for the offshore team.

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Originally published Jul 22, 2022 10:07:20, updated Feb 05 2024

Topics: Outsourcing, Recruitment Process Outsourcing, staffing outsourcing