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How Working with an Offshore RPO Boosts Staffing Revenue and Profits

How Working with an Offshore RPO Boosts Staffing Revenue and Profits

Prepare for even more competition in the staffing industry. Staffing Industry Analysts predicts the staffing market will reach $146.6 billion in 2017, and firms that maintain speed, quality, and cost management will achieve a greater share of the revenue and profits. Increased competition is encouraging more companies to turn to an offshore RPO partner as a cost-effective way of enhancing their delivery. Our research finds that clients save 31% on their cost per hire while also increasing placements per onshore recruiter by 60% on average – and that’s just the beginning of their ROI.

What a Good Offshore Recruiting Partner Provides in Performance and ROI

Data gathered from across 28 of our programs highlight the achievable ROI when an offshore program is set up right. Our assessment, based on the three pillars of a productive offshore recruiting program, rates an offshore program as passing or failing. Here are just a few of the results that good programs achieve:

  • Onshore Sat Ratings – How satisfied are onshore teams with their offshore recruiters? We send out surveys quarterly to ascertain the answer and have identified a substantial gap between failing and well set up programs. On average, poorly set up programs only achieve a 6.4 satisfaction score while a well set up program regularly achieves a score of 9 or 10.
  • Placements per Recruiter – An effective offshore program should be measured by its ability to increase placements per recruiters. Poorly set up accounts saw an average 46% increase, while well set up accounts reached over 69%, which is a difference of at least 23% per recruiter on average.
  • Gross Margin Multiple – The gross margin across multiple placements needs to be measured against the cost of the offshore team. Accounts that were not built on the right foundation only achieved a gross margin multiple 2.0 times higher than onshore recruiters could achieve alone. Well set up programs were able to achieve as much as 6.9 times higher.

What Qualities Are Best in an Offshore RPO Partnership?

How does an offshore program go about generating superior revenue and profitability on a regular basis? They need to partner with an offshore recruiting company that builds their programs upon three essential pillars: building a strong offshore team, assigning appropriate work assignments for offshore recruiters, and encouraging onshore engagement with offshore personnel.

Learn the details about the three pillars that enable offshore recruiting partnerships to deliver a higher ROI.

Brian Cotter

Brian Cotter

Brian has been co-president of PSG since its founding, and focuses on overseeing the company’s US operations. Prior to co-founding PSG, Brian was Vice President of Operations for eTelecare Global Solutions, a publicly traded business process outsourcing company. At eTelecare Brian managed a $60M division with 1,500 onshore and offshore employees. Brian joined eTelecare from Bain & Company, where he worked as a senior consultant for clients across a range of industries, including technology and financial services. Brian also worked for Bain’s Private Equity Group, advising private equity investors on acquisition candidates in a variety of service industries, including the staffing industry. Brian holds a BS from Bryant College, where he graduated Magna Cum Laude, and an MBA from The University of Pennsylvania’s Wharton School. Born and raised in Connecticut, Brian is an avid UConn Huskies fan. Today, living in Southern California, Brian enjoys taking advantage of the great year round weather, playing basketball, golf and tennis.