Insight By HHMC - M&A, Business Advisory Blog for Recruitment Industry

Why Agencies Outsource ?

Written by Rod Hore | 02-Feb-2015 04:44:36

In the competitive recruitment industry, agencies are investing their time and money in expanding their business to compete at a global level. But that strategy and investment is hampered as they are struggling with ever rising cost pressures at the same time.

It is therefore little surprise that the outsourcing model is evolving at a great pace. Companies that are progressive are switching to adopt this model into their core business process to generate high ROI, reduce cost, and fill orders faster.

Here are 5 big reasons why recruiting businesses are outsourcing their work to an offshore partner:

Reduce Cost: By outsourcing ancillary functions to an offshore recruitment partner, you can save a bigtime cost. It has also been seen that staffing firms save up to 60% costs by outsourcing their work to an offshore partner. Additionally, recruitment firms even reduce their infrastructure expenses, extra cost for hiring personnel, as once they tie up with an offshore partner, they need not establish an additional workplace in any new location.

Related: IMS People wins “Outsourced Solution Provider Of The Year”

Global Advantage: Success of recruitment businesses depends on how fast they can deliver qualified, available and retainable candidates from across the globe. Your client will always think of growing globally and would want to hire resources that can support their business plan in diversified geographies. Even recruitment agencies need to spread their network and speed up hiring faster from different geographies without adding cost to the business. This is possible only by outsourcing their sourcing process to an offshore partner that is expertise in hiring candidates at global level.

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 environment, if they outsource their independent tasks to an offshore firm that offers 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 utilize 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, increase turnaround time to the costumer. It increases the in-house productivity and also overall business productivity.

Save Time: Efficient utilization 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 24X7 in spite of limited team size by outsourcing their services. They can speed up their processes and reduce service delivery time remarkably.

HHMC Australia has been working with IMS People for a number of years.  We have seen firsthand how their expertise and enthusiasm can transform how Australian and New Zealand recruitment agencies plan and execute recruitment tasks.

For further information review the services and case studies at IMS People or contact us now.