The global RPO market is estimated at USD 8.45 billion for 2022, representing a 14% increase from 2021 – and the second consecutive year of strong growth as the effects of the pandemic recede. This growth is rooted in both volume and price increases, driven by the need to hire talent in the wake of the ‘Great Resignation’. RPO provides the necessary scalability and agility to ensure that businesses are able to meet their workforce demands.
However, the market is expected to decelerate this year (2023) – with growth forecast at 4% – due to macroeconomic uncertainty and heightened cost considerations. According to providers, RPO, MSP, and talent management/development services are merging, with nearly 21% of the RPO market (by share of reported contracts) now derived from an RPO that offers both MSP and contingent workforce services. Additionally, there is a greater focus on advanced digital solutions such as robotic process automation (RPA) and artificial intelligence (AI) powered by dedicated teams that are constantly evaluating the best technology in the market.
The talent crisis has also created the need for organizations to consider a multi-channel approach to sourcing, attracting, securing, and retaining candidates. An increasing number of
