Image Image Image Image Image Image Image Image Image Image
Scroll to top


No Comments

How BPO could make recruiters profitable again

How BPO could make recruiters profitable again

Recruitment company databases are groaning with candidate resumes but remain almost unusable because too many are not ‘clean’ or properly formatted. Worse, no one spends enough time working with the databases to extract value from them – it’s just too hard.

The savvy recruiters know that mastering data is vital to not only surviving but thriving but also that investing in the right expertise doesn’t have to cost more if they find the right offshore partner to help them.

The fortunes of recruiters have been in decline since 2010. The market is saturated; hyper competitive and operating costs are rising. Some leading industry commentators report that over a third of staffing companies are operating at a loss and another third are barely breaking even.

Easy way to protect your brand

Poor data management is one the key issues holding recruiters back. They simply don’t know how to mine the gold they house. Instead firms throw up ads on job boards hoping that a candidate will click and apply. Consequently, the notion of delivering “Expertise – as – a – Service’ (EaaS) falls flat.

The market is driven by metrics like “speed to hire” and candidates are now sourced on social media sites like LinkedIn and The Search Party. Job boards are passé and fast losing any effectiveness once offered.

A surge of new cloud based technologies and media innovations have really altered the landscape. Those that know how to engage with the new ‘internet of everything’ will thrive and those that don’t will be left behind.

Poor data management also results in poor candidate management. Candidates spot a job, take time and consideration over their application; throw their hat in the ring and then nothing! Who do they tell about their bad experience? Everybody and in a voice amplified by social media. In fact, some people are so bruised by the experience that they work overtime online to trash recruitment companies.

God I hate recruiters is just one of countless stories out there. I typed ‘I hate recruiters’ into a search engine browser and got 488,000 page results. Yikes!

Why suffer a blow to your reputation when it is so easy to engage a cost effective “virtual assistant” in the Philippines to write and send respectful rejection emails to candidates and win praise for being a leader in candidate care?

Recruitment Virtual Support Agents

Recruitment Virtual Support Agents (RVSA) are here now and offer a high ROI, reduced costs and a faster way to fill job orders.

Leading high performance recruitment coach Ross Clennett has written about the impact of using an RVSA had on business support specialist Rusher Rogers Recruiting.

Clennett recalled that Rusher Rogers were facing escalating staff costs and turnover issues and were “typically okay [at] admin but generally [not] very good at sourcing candidates and only skilled at processing incoming applicants.

“For a monthly cost of $3,000 plus GST, the admin and support role [was] undertaken by an RVSA saving [the company] around $2,000 a month in salary ‘on costs’, before the savings of associated office costs.”

The old model of recruitment is broken. To survive, the modern recruitment firm has to lower its operating costs and outsourcing its back office processes is the most obvious and logical way to do this.

Five reasons to find an offshore partner

Still not convinced? Read industry commentator Rod Hore’s top reasons to find an offshore partner.

Reduce Cost: Research shows staffing firms save up to 60% on their costs by outsourcing work to an offshore partner. Recruitment firms also reduce infrastructure expenses because an offshore partner dispenses with the need to establish an additional workplace in any new location.

Global Advantage: Success of recruitment businesses depends on how fast they can deliver qualified, available and retainable candidates from across the globe. Organisations are increasingly looking to grow globally and thus need the talent to help them do that. Recruitment need to spread their international networks to speed up the hiring when working across different geographies without adding cost to the business. This is possible only by outsourcing the sourcing process to an offshore partner that has expertise in hiring candidates at a global level or even a particular overseas market.

Speed & Flexibility: Many offshore recruitment service providers work as per the time zone requirements of their client’s geography. Staffing firms can get the benefit of running their business in full control even in uncertain business environments, if they outsource their independent tasks to an offshore firm that offers a flexible environment and works to meet on-demand needs.

Productivity: Recruiter’s efficiency is severely affected by overburdened non-core functions. By outsourcing ancillary functions to an outsource partner, staffing firms can optimally utilise the efficiency of their precious human resource in generating real time returns. With a strong support of offshore recruitment model the team can produce faster results and increase turnaround time to the costumer. It increases the in-house productivity and also overall business productivity.

Save Time: Efficient utilisation of time is the biggest reason for which businesses are switching to ORS model. Staffing firms from different geographies enjoy the benefits of difference in time zones as they can run their business 24×7 in spite of limited team size by outsourcing their services.



Martin was voted into the top five most influential and respected people in the global outsourcing industry in Nov 2014. He is well recognised as one of the leading voices of the outsourcing industry and its role infacilitating outsourcing success throughout the Asia Pacific. Founder and former President of The Australian BPO Association.
Please follow and like us: