How Outsourcing Talent Acquisition Can Save Money and Time

It is a well-known fact that outsourcing has helped several companies to acquire highly qualified talents efficiently, be it a startup, large, or mid-scale enterprise. Several fortune 500 companies including Apple, Microsoft, Google, TATA motors rely on outsourcing for talent acquisition.

While every organization first strives to cut down hiring costs, outsourcing goes a step ahead by avoiding hidden costs. Apart from the cost aspect, it helps you communicate about your brand effortlessly and leverage the experience and expertise of recruitment experts to decide what are the best possible solutions for your hiring need.

This write-up covers the key aspects of how to lead your team by developing an intelligent recruitment process that helps you save time and money. And here’s how outsourcing talent acquisition can help you achieve the same.

What is Recruitment Process Outsourcing?

Recruitment process outsourcing refers to employers or enterprises vesting the responsibility of executing the entire hiring process or few specific steps to an external recruitment service provider. It involves the transfer of role and responsibility of hiring activities to an external agent or agency. External recruitment service providers are well-known to fulfil the hiring requirements of an organization by carrying out tasks like candidate CV sourcing, screening, shortlisting candidates, and developing candidate databases. They are also supposed to possess a deep industry knowledge that they use to reach hard-to-find candidates.

Benefits of outsourcing talent acquisition

The most evident benefits of outsourcing the hiring process include less time to fill and reduce hiring costs. The other benefits are immense, one of which is ensured quality hires. They also render support to streamline the hiring process. They give access to expert recruiters from diversified industries and regions who can assist fill hard to fill positions.

Tech enabled recruitment marketplaces offer AI-ML recruitment tools, automation of recruitment processes, integrated dashboard for posting jobs and tracking the applicant status. Another aspect that is taken care of is handling operational hassles, where certain recruitment service providers offer partner and client success managers and a team who will take care of all administrative aspects of the hiring process.

Apart from this, RPOs enable periodical hiring metrics to assess the hiring success rate and also provide reports and suggestions to improve the hiring process.

1. How Does Outsourcing Cut Hiring Costs?

A typical hiring process involves several types of expenses, this includes both internal and external hiring expenses. Internal hiring expenses involve recruiter salaries, incentives, referral fees. External hiring expenses involve recruitment tool subscription cost, recruitment training expenses, and one-time expenses such as tech investment and automation cost.

Here the main challenge is when the hiring needs become dynamic the recruitment cost becomes unpredictable or expensive. This is where recruitment agencies and marketplaces can offer a cost-effective hiring solution by rendering manpower and platform support.

In a research, IBM found that almost all organizations reduced their recruitment cost by 27% by outsourcing it.

Here are some reasons why outsourcing can cut hiring costs for the company.

  • Reduced operational and overhead costs
  • Ease of scalability under lesser cost
  • Improving work flexibility and hiring efficiency
  • Reduced cost of data entry or document processing
  • Reducing labor and wage cost
  • By reducing the workplace and equipment needed for the in-house team

2. How Does Outsourcing Reduce the Time to Hire?

You need time to establish the process of finding the right talent, set up CV screening and interview to assess if the candidate passes the qualification checklists, perform background checks, and select the candidate. Now, if the process of searching itself takes a significant amount of time, imagine how long you're selecting and recruiting process will realistically be.

But if a professional recruitment company collaborates with you, you get a team that can continuously engage with top professionals in the market. Thus, it reduces the time you need to fill open vacancies based on the RPO’s working experience or seniority.

Recruitment agencies have access to a large data pool. Combined with the extensive networking endeavors they engage in, they have recruitment firms that can source, screen, and shortlist the best talent faster than the organization itself. For all these tasks, the organization will have to dedicate an entire team, assign them with tasks, train them, and spend for the process.

3. How can You Achieve the Overall Goal of Acquiring Quality Hires?

When making a hiring choice, recruiters consider a variety of things. An established recruitment firm has the necessary HR specialists who determine the best candidate for a job position. Additionally, the firm's network with a steady supply of applicants from a specific sector increases their visibility. An internal recruiting manager, however, is only permitted to look for individuals when they discover an open position whereas recruitment service providers have constant inflow of talents into their talent pool.

Types of talent outsourcing solutions and their benefits:

Before you decide to outsource talent acquisition consider your hiring needs. There are five types of recruitment outsourcing you must first be aware of. We have provided you with a succinct overview of each to assist you in choosing the one that is most appropriate for your company.

On-demand RPO: An on-demand RPO is ideal for you if your organization experiences seasonal hiring spikes. It will strategically support your recruiting needs and provide you with a dedicated recruiting resource when in need.

Project-based RPO: It is perfect when your internal team is looking for outside recruitment support to help augment a particular role when you are changing business strategy, introducing a new product or service, or growing in size. This covers specialized niche-based hiring of industry professionals.

Hybrid RPO: It proves to be useful when you want to keep some of your vacant roles under your control while outsourcing some of your talent needs. It does so with valued assistance and knowledge of RPO recruitment teams.

End-to-end RPO: From early candidate sourcing and screening efforts till conducting interviews and navigating the hiring process, it provides help and expertise at each stage of the recruiting process takes care of all parts of your permanent hiring.

Head hunting: It involves taking care of hiring for lead roles such as CEOs, CFOs, and so on. This requires expertise and experience in hiring top management professionals. There are specialized headhunting agencies with trained professionals who can render this service. 


Every business, especially the budding ones, strives to reduce the costs of their businesses and outsourcing talent acquisition is a successful way to do this. It not only boosts the productivity of your recruitment process but also saves you time and money.

In addition to all of these benefits, outsourcing talent acquisition enables you to employ the top talent in the industry thanks to the massive data pool and networking that recruitment marketplaces possess which is an added benefit given the talent shortage in today's marketplace.

Knowing that outsourcing talent acquisition is a smart recruitment strategy that can unleash multitude of benefits by leveraging recruitment marketplaces thereby speeding up your recruitment process.

Signing off:

Vidhya V,

19 October 2022

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