As your business grows, so does its operational requirements. Aside from better facilities, you will also need to expand your workforce. You can always hire through your in-house HR team, but another cost-efficient solution you can explore is recruitment process outsourcing (RPO), which is a practice that provides businesses with access to talent that matches their particular requirements. 

RPO is a business model in which a company delegates the recruitment process to a third-party expert to drive efficiency in cost, quality, and service. The third-party RPO provider will recruit and place the hired personnel into their partner organization. RPO has been reported to be one of the most rapidly growing processes in human resources outsourcing (HRO) markets, with a growth rate that consistently reached more than 15% in the last three years.

In the Philippines, where English is widely spoken, and a highly-skilled work pool is abundant, the RPO industry caters to a wide array of foreign corporations in search of suitable talent. For instance, in a 2016 study that assessed the global outsourcing market, Manila has been reported to bag the second top spot for the “biggest outsourcing city in the world.”

The Philippines has also experienced a 30% BPO growth rate over the last ten years, as affirmed by the Information and Communications Technology Office. In the future, the country’s BPO market share can spike up to 20% of the worldwide market, with a whopping revenue of $48 billion.

With all these remarkable figures, it’s evident that the outsourcing industry in the Philippines is thriving. Below, we’ll discuss several advantages of outsourcing recruitment processes to the Philippines. But before that, let’s briefly tackle the benefits of RPO.

What are the Business Advantages of RPO?

The benefits of RPO can be easily observed in a lot of business areas, from cost reduction to the improvement in the quality of the hiring process. With the right implementation of tailor-fit recruitment solutions, companies can inexpensively scale and position themselves for success. More impressively, businesses of all types and sizes can benefit from RPO.

Reduced Overhead Costs and Overall Cost Per Hire

One key advantage of RPO is that the process can reduce the hiring time by 40%, leading to over 50% savings in recruitment costs. Several big corporations shell out hefty amounts of money solely on recruiting. They also face the straining impact that in-house recruitment brings on time allocation and task division among its HR staff. 

RPO reduces overall projected costs by allowing you to focus on your primary business objectives as your third-party recruitment partner develops efficient and reliable recruitment processes, prioritizes the quality of hire, and drives direct proactive sourcing strategies.

Scalable Recruiting Capacity

Another significant benefit is the scalability and flexibility of the process, as RPO vendors can deliver a hiring model that is in-line with the company’s demands. Hence, the recruitment process can be downsized, upscaled, or sped up, depending on what your business requires. The RPO model is also designed to prioritize recruitment needs and meet them accurately without sacrificing speed, quality, or brand appropriateness.

On-demand Recruitment Services

Certain lines of business don’t need additional labor all year round. There are peak seasons when extra support is necessary to accommodate the workload. This is especially true in sales and retail, customer support, information technology (IT), telecommunications, and data entry. 

With RPO, a business can take advantage of on-demand recruiting services that work around monthly subscriptions, project-based agreements, or even remote jobs that are compensated hourly. It’s also not cost-effective to hire regular employees for seasonal work, especially for small businesses.

Bespoke Recruiting

RPO allows for bespoke recruitment or a range of commissioned services that are customized to fit the specific needs of the company. It has already been discussed that RPO services can be scaled and timed according to what is needed to achieve the goals of the organization. Hence, employment arrangements can be tailored to fit the specifications set by the company, and these details can be reflected in the contract terms.

Access to resources (tools, data, and analytics, etc.)

Digital tools and software programs can be costly and require advanced skills to manage and maintain. Your business can benefit from the proprietary tools and systems of your third-party RPO provider, which typically includes data management and analytics. 

These resources allow for data-driven initiatives and help your business make more educated decisions without spending on an in-house network, electronic equipment, services of expert data providers, and a team of IT professionals.

Read this related article: 7 Crucial Recruitment Metrics You Should Be Tracking ASAP

Why Should You Outsource Recruitment Processes to the Philippines?


  1. Access to Highly Competitive Force

The talent shortage is one of the primary reasons why foreign companies need RPO—35% of organizations worldwide to claim to experience difficulty with filling critical positions. Across Europe, the Middle East, and North America, employers find it difficult to fill jobs such as skilled trades, engineers, sales representatives, technicians, and management/executive roles.

With the wide variety of labor pools in the Philippines, it will be relatively easier and faster to fill such positions. To add, the Philippines has a literacy rate of 95%. Additionally, the ASEAN Briefing reports that the country produces 450,000 graduates from higher education institutions annually. 

  1. Filipinos have High English Proficiency and a Neutral Accent

The GlobeEnglish Corporation’s Business English Index shows that the Philippines scored a 7.95 band of high English proficiency. Indeed, Filipino workers have proficient English speaking and writing abilities, which make them highly capable of actively partaking incorporate discussions, and executing complicated tasks. 

Your company can also operate seamlessly between your domestic team and Filipino recruits since they share a common language. Ineffective communication caused by a strong foreign accent can build barriers in the business and negatively affect job performance. Such issues can be avoided if you hire Filipino workers with a neutral accent.

  1. Labor Costs in the Philippines Remain Among the Most Competitive in the ASEAN

The low labor costs in the Philippines make it an appealing outsourcing destination. Aside from attracting investors, professionals are also more inclined to seek career opportunities overseas. Moreover, with an influx of low-cost labor from abroad, your company’s domestic workforce can expand while keeping operational costs low. Thus, you can tap into additional labor resources without having to shell out too much. This, in turn, allows your business to generate higher revenue.

Read this related article: 7 Reasons You Should Outsource Customer Service to the Philippines


Your employees are your company’s backbone. Thus, making sure you are hiring top candidates is crucial and should be considered a top priority. Delegating your recruitment process to an RPO expert can help your business attract top-notch talents.

If you plan to explore RPO in the Philippines, SuperStaff is a reputable firm that offers reliable RPO services that can be customized to match your hiring needs. For more information, contact us now!

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