Multi-Country RPO: Unveiling the Service Delivery Model Best Practices

26 Jul 2012
by Rajesh Ranjan

Executive Summary

The Multi-Country RPO (MCRPO) model, while in the formative stages, has already demonstrated the potential to significantly redefine traditional approaches to the management of global recruitment processes for some companies. This nascent market has recently experienced noticeable growth, as multinational corporations (MNCs) increasingly consider and adopt MCRPO in order to strategically address their ongoing and evolving recruitment requirements. The number of new MCRPO deals jumped by 50% from 2010 to 2011. However, to date, the MCRPO approach and the outcomes achieved, along with the level of satisfaction among MCRPO buyers, are mixed.

 Given the mixed outcome achieved, Everest Group undertook a comprehensive study to assess variations in MCRPO delivery models and to identify the best practices towards achieving the desired outcomes. The goal of the study is to develop an in-depth understanding of the large MCRPO buyer psyche. In particular, the study focuses on the thought processes that drive buyers’ decisions regarding service delivery options, as well as the outcomes of those decisions. The study does not aim to portray MCRPO industry trends in general. Its primary methodology is a set of in-depth executive interviews combined with detailed engagement data collection with current MCRPO buyers. This document summarizes and highlights the notable findings from that study.

In order to understand the correlation between service delivery model choices and their impact on the outcome, we analyzed six key service delivery dimensions. Noteworthy best practices emerged through the discovery process and are discussed in this document for each of these dimensions:

  • Process scope and service delivery location
  • Pricing models
  • Performance management
  • Governance models
  • Technology
  • Risk mitigation

It is evident from this analysis that MCRPO can deliver desirable outcomes to buyer organizations. In order to achieve this, organizations must have a strong understanding of the dimensions that impact success and identify the practices best suited to their particular circumstances and objectives.

 

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