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ROI

The most compelling reason to take your recruiting efforts offshore is to lower the cost of delivering qualified candidates to your clients. Below we take a realistic look at the cost savings you can expect from an RPO model versus traditional onsite recruitment.

A realistic view of onshore versus offshore recruitment costs

On the surface, RPO cost savings can be astounding: an offshore recruiter typically costs $1,500 per month, versus $6,500 per month — the average cost of an onshore recruiter with the same productivity. Most RPO firms would leave it at that. At TEAM International, however, we prefer to provide our clients with a more accurate picture of the cost savings they can expect by engaging RPO services.

The reality is, onshore recruiters are usually more productive than offshore recruiters (especially in the first year) due to a variety of factors, including RPO recruiter ramp-up and training time, as well as cultural/work style differences.

At TEAM International, we have systematically tracked performance and results of both onshore and offshore recruiters for the past three years. Our research shows that offshore recruiters normally submit 4 candidates to clients per week, versus the 7 candidates usually submitted by onshore recruiters. Our data has also shown that, for both onshore and offshore recruiting, it typically takes an average of three candidate submittals to generate one client interview, and three interviewed candidates to generate one placement.

Therefore, in terms of productivity, you can expect two offshore recruiters to produce results equivalent to those of one onshore recruiter — giving you an approximate 50 percent cost savings when utilizing RPO.

 

 

Read more on our BOT Offshore Recruiting Centers