RPO services: Why do companies hire 100+ people annually but still can’t build an internal TA team that works? The problem becomes visible when startups scale from 50 to 300 employees in 18 months. Moreover, it shows up when GCCs expand across Bangalore, Hyderabad, and Pune at the same time. Manufacturing firms face seasonal hiring spikes that internal teams simply cannot handle without losing quality.
The global RPO market reached USD 16.5 billion in 2025. It will grow to USD 77.3 billion by 2034. This growth happens because companies realize internal hiring models break when you need to scale. Additionally, organisations using RPO reduce hiring costs by 25-50% while hiring faster and better.
This article explains the recruitment process outsourcing through real scenarios. You’ll learn when internal hiring fails, how RPO actually works in Indian cities, what it costs, and when you should not use RPO despite the benefits.
What are RPO services, and how do they differ from staffing?
RPO services (recruitment process outsourcing) means giving part or all of your hiring work to an external partner. They work as an extension of your HR team. This is very different from staffing agencies that just fill individual jobs.
RPO providers manage your entire talent acquisition process. They handle workforce planning, employer branding, finding candidates, screening them, interviews, offers, and onboarding. Staffing agencies work on single roles. RPO partners integrate into your organisation, use your systems, and represent your employer brand.
The key difference is ownership:
Staffing agencies: Fill one role at a time. Work on commission. Source from their database. Represent multiple clients at once.
RPO providers: Own your recruitment process. Work on defined targets (SLAs). Build talent pools specific to your needs. Represent only your brand when talking to candidates.
Executive search: Handle senior leadership through retained contracts. These take months of engaging passive candidates.
RPO services: Manage volume hiring, specialised hiring, and everything from entry-level to mid-senior positions.
According to Corporate Stalwarts’ data, companies using RPO transform recruitment. It changes from reactive firefighting to proactive pipeline building. Talent becomes available before you need it, not after.
When do companies in India need RPO services?
Organisations turn to recruitment process outsourcing when internal hiring cannot keep up. This happens when quality drops under pressure or when hiring costs eat into budgets without results.
Scenario 1: Startups scaling from 50 to 500 employees
A Bangalore SaaS startup raises Series B funding. They need 200 engineers, 50 sales professionals, and 30 support staff in six months. Their HR team has three people. Consequently, they cannot source, screen, and close this many roles while keeping cultural fit and technical standards high.
Internal hiring works fine at first. At 50 employees, the founders interview everyone. With 200 employees, hiring becomes a bottleneck. At 500 employees without a proper structure, quality collapses under speed pressure.
What works: Project RPO handles the surge. After that, partial RPO continues for ongoing needs.
Scenario 2: GCCs expanding across multiple Indian cities
A multinational sets up capability centres in three cities at once: Bangalore for technology, Hyderabad for operations, and Pune for engineering. Each location needs different talent pools, salary levels, and market approaches. As a result, internal recruiters in one city struggle to source well across all locations.
Companies building GCC teams in India face multi-location hiring complexity. Internal teams cannot manage this without deep local market knowledge in each hub.
What works: Full RPO with teams in each city. They understand Bangalore’s competitive tech market, Pune’s product engineering talent, and Hyderabad’s pharma and GCC ecosystems.
Scenario 3: Manufacturing and logistics seasonal hiring
An FMCG company needs 300 warehouse staff before Diwali. They need 200 more during the summer. Then they scale back. Consequently, keeping a large internal TA team year-round creates fixed costs during slow periods.
What works: Flexible RPO on a monthly retainer or cost-per-hire. Recruitment capacity scales with business cycles instead of staying fixed. Therefore, you pay only for what you need when you need it.
Scenario 4: High attrition in IT services and BPO
A Pune IT services firm loses 25% of its employees every year to competitors. Constant replacement hiring takes all HR bandwidth. As a result, no time remains for retention work or strategic planning.
When half your employees keep looking for new jobs, recruitment becomes continuous. Internal teams get stuck replacing people instead of building teams.
What works: Ongoing RPO with proactive talent pipelining. Pre-screened candidates exist before positions open. Time-to-fill drops from 45 days to 20 days.
Scenario 5: Niche talent shortages in AI/ML and cloud
A Bangalore fintech needs AI/ML engineers, cloud architects, and cybersecurity specialists. Generic job posts attract hundreds of wrong applications. The specific expertise they need stays hidden. Meanwhile, internal recruiters often lack the technical depth to screen candidates properly.
SHRM data shows the average cost-per-hire reaches $28,000 for highly technical roles. Finding niche tech talent requires specialised sourcing beyond standard recruitment.
What works: Selective RPO focused on tech roles. Providers with technical screening skills and specialised talent networks deliver quality over volume.
How do RPO services work in practice?
Recruitment process outsourcing operates through clear phases. SLA-driven execution and continuous improvement based on hiring metrics keep things working.
Phase 1: Discovery and process design (Weeks 1-4)
The RPO partner runs a complete needs assessment:
- Current hiring volumes by role, level, and location
- Time-to-fill and cost-per-hire benchmarks
- Quality of hire and retention metrics
- Pain points in your existing process
- Technology stack and ATS integration needs
- Hiring manager satisfaction levels
Based on this, they design workflows aligned to your goals. These might include reducing time-to-fill by 40%, improving quality of hire by 25%, cutting cost-per-hire by 30%, or building proactive pipelines for critical roles.
Phase 2: Team deployment and integration (Weeks 5-8)
RPO providers deploy dedicated recruiters. These people become extensions of your HR function:
- On-site presence in your Bangalore, Hyderabad, or Mumbai offices (for larger deals)
- Remote or hybrid teams for smaller volumes
- Access to your ATS, HRIS, and communication platforms
- Training on your employer’s value proposition, culture, and hiring standards
- Direct relationships with hiring managers
Unlike staffing agencies working from external databases, RPO recruiters work within your systems. They attend your team meetings and represent your brand exclusively.
Phase 3: Execution and optimisation (Ongoing)
Daily work includes:
- Proactive sourcing from job boards, LinkedIn, employee referrals, campus hiring, and passive candidate networks
- Resume screening using AI tools plus human judgment
- Initial phone screens and technical assessments
- Interview coordination with hiring managers across time zones
- Offer negotiation and closing
- Background verification and onboarding support
Weekly and monthly reporting:
- Pipeline health by role and stage
- Time-to-fill trending
- Source effectiveness (which channels deliver the best candidates)
- Offer acceptance and decline reasons
- Hiring manager feedback scores
According to Corporate Stalwarts’ RPO clients, this data-driven approach finds bottlenecks that internal teams miss. Examples: interviews scheduled but repeatedly cancelled, compensation misalignment, or job descriptions attracting the wrong candidates.
Phase 4: Continuous improvement
Every quarter, RPO partners analyse performance against targets. They recommend improvements:
- Adjusting salary bands based on market changes
- Refining job descriptions that underperform
- Expanding sourcing channels for hard-to-fill roles
- Automating repetitive tasks
- Enhancing candidate experience touchpoints
Types of RPO models: Which fits your hiring needs?
RPO services come in three main models. Choosing correctly determines success.
Full RPO (End-to-End)
What it covers: Complete ownership of recruitment from workforce planning through onboarding. The RPO provider manages everything. Your internal HR focuses on retention, development, and employee relations.
Best for:
- Companies hiring 100+ people annually across levels
- Organisations with no internal TA team
- Businesses are expanding rapidly across multiple locations
- Enterprises wanting predictable recruitment costs
Investment level: Higher upfront but lowest cost-per-hire at scale. Typically, a monthly management fee plus cost-per-hire, or a fixed monthly retainer covering unlimited hiring.
Example: A Hyderabad GCC with 2,000 employees uses full RPO. They manage 400+ hires annually across tech, operations, and support functions. Dedicated recruiters work on-site.
Partial/Selective RPO
What it covers: Outsourcing specific hiring functions (high-volume roles, niche tech positions, campus hiring) while the internal team handles other areas (leadership, critical functions).
Best for:
- Companies with existing TA teams needing specialised support
- Organisations hiring across diverse role types with varying complexity
- Businesses want flexibility to scale specific hiring areas
Investment level: Moderate. Pay only for specific hiring categories or locations.
Example: A Mumbai fintech keeps executive hiring internal. They partner with RPO for volume tech hiring (50-60 engineers annually) and sales hiring (30-40 reps). Specialised sourcing delivers better results here.
Project RPO
What it covers: Time-bound hiring surges like new centre launches, product launches requiring team buildouts, or seasonal hiring.
Best for:
- One-time hiring needs (setting up new office, acquisition integration)
- Seasonal businesses with predictable hiring spikes
- Companies testing RPO before full commitment
Investment level: Project-based fees, typically 3-6 month engagements.
Example: A logistics company uses project RPO to hire 200 delivery personnel before the festive season in Delhi, Pune, and Bangalore. After the season, they scale down.
RPO services vs other hiring models: What’s the difference?
Understanding when to use each model matters more than knowing what each model does.
When to choose RPO over alternatives:
- Hiring volumes exceed 50 annually
- Need predictable recruitment costs
- Quality cannot be compromised for speed
- Internal team is overwhelmed or non-existent
- Expansion across multiple cities
- Specialised talent requires dedicated sourcing
When NOT to choose RPO:
- Hiring fewer than 20 people annually (fixed RPO costs don’t justify)
- All roles are senior leadership (executive search works better)
- The company lacks hiring clarity (RPO needs defined processes to manage)
- Organisation unwilling to integrate an external partner into its systems
Benefits of RPO services for growing companies
Recruitment process outsourcing delivers measurable improvements across speed, cost, quality, and strategic capability.
Faster time-to-hire
Corporate Stalwarts’ RPO clients experience 48-hour candidate shortlisting for standard roles through proactive talent pipelines. When positions open, pre-screened candidates already exist. As a result, this cuts time-to-fill dramatically.
Over 33% of global job placements now process through RPO platforms, reducing hiring cycles by 30%. The reason: dedicated sourcing runs continuously, not just when roles open.
Significant cost reduction
RPO typically reduces overall recruitment costs 30-50%. Here’s how:
Eliminating agency fees: Savings of 15-25% on placement fees for roles previously filled through contingent agencies
Economies of scale: RPO providers spread technology costs, job board subscriptions, and sourcing tools across multiple clients
Reduced administrative burden: No need to maintain full-time recruiters during slow hiring periods
Lower attrition costs: Better quality of hire reduces replacement hiring
Improved quality of hire
Structured processes, technical assessment capabilities, and data-driven screening improve candidate quality. Organizations report better cultural fits and higher performance from RPO hires compared to reactive hiring.
Methods that improve quality:
- Competency-based screening frameworks
- Structured interviews reduce bias
- Cultural fit assessment beyond resume screening
- Reference checking and background verification
Scalability and flexibility
Hiring capacity scales with business needs rather than remaining fixed. For example, a Bangalore startup hiring 10 people monthly can scale to 50 monthly during expansion. They don’t need to build permanent TA infrastructure.
This matters especially when companies expand to multiple cities. Hiring surges that internal teams cannot handle without quality compromise become manageable.
Access to advanced recruitment technology
RPO providers deploy AI-driven sourcing, applicant tracking systems, candidate relationship management, and analytics dashboards. These would cost individual companies ₹25-50 lakhs annually to license and maintain.
Strategic focus for HR teams
When recruitment moves to RPO partners, internal HR can focus on retention instead. They work on employee development, culture building, and workforce planning. They stop spending 60% of time on tactical hiring coordination.
When NOT to use RPO services: Honest limitations
RPO services solve specific problems. Understanding when they don’t fit saves time and money.
Your hiring is fewer than 20 people annually
Fixed RPO costs (even in cost-per-hire models) don’t justify for low volumes. A 3-person internal TA team or contingent recruiters work better.
Alternative: Use contingent hiring for specific roles, executive search for leadership, and internal referrals for cultural fits.
All your hiring is senior leadership (VP+)
RPO optimises for volume and process. Leadership hiring requires months-long passive candidate engagement, board-level discretion, and succession planning expertise.
Alternative: Partner with executive search firms specialising in CXO and VP-level mandates.
Your organisation lacks hiring clarity
RPO manages defined processes. If job descriptions change weekly, hiring managers contradict each other, or company culture remains undefined, RPO cannot optimise chaos.
Fix first: Establish clear job requirements, decision-making authority, and cultural values before engaging RPO.
You need 100% control over every hiring decision
RPO requires trust that external recruiters will represent your brand, screen candidates appropriately, and make recommendations. If you must personally review every resume and control every touchpoint, internal hiring suits you better.
Budget constraints prevent 6-12 month commitments
Most RPO agreements require minimum engagement periods to justify the integration effort and process setup. Month-to-month flexibility isn’t typical. Therefore, organisations need budget commitment for at least 6-12 months.
Alternative: Project RPO for defined hiring surges or contingent hiring with no commitment.
You’re hiring globally across 10+ countries with different regulations
RPO works best within defined geographies. Multi-country hiring with varying labour laws, languages, and compliance requirements requires specialised global recruitment solutions beyond standard RPO.
How to choose the right RPO partner in India
Selecting an RPO provider determines success. The wrong choice creates more problems than it solves.
Industry experience and sector expertise
Does the provider understand your industry’s talent market? A fintech’s engineering hiring differs from manufacturing’s operations hiring. Look for proven track records in your sector.
Questions to ask:
How many clients are in our industry?
Case studies showing similar hiring profiles?
Understanding of our competitive landscape for talent?
Technology capabilities and integrations
Can they integrate with your existing ATS, HRIS, and communication platforms? Do they use AI for sourcing and screening? What analytics and reporting do they provide?
Corporate Stalwarts’ RPO technology includes AI-driven candidate matching, automated screening workflows, and real-time hiring dashboards showing pipeline health across all roles and locations.
Presence in cities where you hire
Multi-location hiring requires local market expertise. A provider with recruiters in Bangalore, Hyderabad, Pune, Mumbai, and Delhi understands city-specific salary benchmarks, talent availability, and competitive dynamics.
Scalability and flexibility
Can they handle 20 hires this month, 50 next month, and 10 the month after without degrading quality? Look for proven ability to scale recruitment capacity quickly.
Cultural fit and communication
RPO recruiters represent your employer brand. Their communication style, professionalism, and cultural understanding must align with yours. Interview the actual recruiters who will work on your account.
Transparent pricing and SLA commitments
Beware of providers unwilling to commit to time-to-fill, quality of hire, or cost-per-hire metrics. Strong RPO partners operate on defined SLAs with consequences for missing targets.
References and client retention
Ask for references from current clients in similar industries and growth stages. 95% client retention indicates long-term partnership success, not just initial wins.
Work with Corporate Stalwarts for leadership hiring
Frequently Asked Questions
Questions GCC leaders ask about recruitment partners
Basic RPO takes 30-60 days from contract to first hires. Enterprise solutions with multiple locations need 60-90 days. Timeline depends on your size, hiring complexity, and integration readiness.
Yes. Selective RPO lets you outsource specific categories (tech roles, high-volume positions) while keeping control over leadership or specialised areas. This hybrid approach works well for companies with existing TA teams.
Internal recruiters typically shift to strategic work: employer branding, hiring manager consultation, workforce planning, and candidate experience. Some organisations move them to retention, onboarding, or talent development, where company knowledge adds more value.
RPO manages your permanent hiring process end-to-end. Temporary staffing provides contingent workers for specific durations. RPO builds long-term talent pipelines. Temporary staffing solves immediate capacity needs with workers employed by the staffing agency.
Yes, if hiring velocity exceeds internal capacity or specialized expertise (tech hiring, sales hiring) requires dedicated focus. However, companies hiring fewer than 20 people annually may find contingent hiring or part-time internal recruiters more cost-effective.
Strong providers invest in cultural onboarding: site visits, leadership interviews, employee shadowing, and immersion in your values and work environment. Monthly calibration sessions with hiring managers ensure ongoing alignment.
Corporate Stalwarts is a trusted recruitment firm with 20+ years of expertise in executive search and leadership hiring.
We’ve placed 10,000+ candidates across 600+ companies in FMCG, Manufacturing, IT, Pharma, and more. Our 1M+ candidate pool and 48-hour turnaround enable fast, high-quality hiring solutions.
We help businesses build high-performance teams with precision, speed, and industry expertise.
