Recruitment process outsourcing (RPO) is a form of business process outsourcing (BPO) where an organization outsources its recruitment activities to a third party provider. RPO providers can manage the entire recruitment life cycle from end-to-end or can provide a subset of recruitment services, usually on a managed service basis.

The key benefits of RPO are cost savings, improved quality of hire, increased speed to hire, and improved access to a larger pool of talent. RPO can be used to fill both direct hire and contingent workforce needs.

RPO providers typically use a combination of technology and people to source, screen, and select candidates. RPO providers may also provide value-added services such as candidate assessment, talent community management, and employer branding.

The RPO market has evolved over the past decade and is now categorized into three main types of providers:

1. Blended RPO providers: Blended RPO providers offer a mix of onshore, nearshore, and offshore resources to deliver cost-effective RPO solutions.
2. Onshore RPO providers: Onshore RPO providers are based in the same country as their clients and typically have a deep understanding of the local labor market.
3. Offshore RPO providers: Offshore RPO providers are based in low-cost countries and can offer a more cost-effective solution than onshore or blended RPO providers.