What is Recruitment Process Outsourcing or RPO?

Recruitment process outsourcing or RPO is a type of Business process outsourcing, wherein the companies outsource the entire recruitment process or a part of the recruitment process to external service providers. The RPO firms may be small, medium or large depending on the size and capacity of the firms.


How RPO Firms Function?

The RPO firms might utilize the existing resources in a company or deploy their own resources for executing the entire recruiting process from end to end or a part of the recruiting process depending on the case. The RPO firms handle talent management, process management, job profiling, payroll management, governance and other recruitment related activities.


The Reasons for the Companies to Opt for RPO

There is a need for the companies to analyze the necessity of an RPO firm, to select the suitable kind of RPO service. The reason may be that your internal human resource team may be under pressure due to increased hiring or there may be an unprecedented surge in recruiting activities. An expansion in the making or the management’s desire for a more accountable system different from internal recruiting, contract recruiting and recruiting agencies may also necessitate for RPO. One more reason is that the statistics related to cost, speed and quality of hiring are unknown in traditional recruitment processes.


Employer Branding & RPO

The employer brand image is like the face of the company. The RPO service will not only increase the quality of the hire but also will speed up the hiring process, which will develop a positive image for the company in the eyes of job seeking candidates. The RPO completely represents the company’s brand image and the hiring managers are relieved and get highly involved in ‘recruit to hire’ processes, which will result in a positive experience for the job seeking candidates. The word of mouth usually spreads like fire in the recruitment industry and the concerned company will be a brand to reckon in no time.


Hence, I am of the opinion that the companies whether small or large must adopt RPO service for the betterment of their image, reduction of recruitment costs, reduced hiring time, increased quality of hires and other benefits.

What is Employer Branding?

Employer branding is the image or reputation built by a company in the labor market to attract and retain the best talent and it should be reflected in the organization values and also in the company’s approach towards people management.


Employer Branding is the need of the day

Employer branding is like a nurturing nursery which helps to retain the best talent saplings for long, giving desired fruits. The social responsibility and general ethics of a company influence and strengthen employee morale. Strong employer branding builds a reputation for the company’s brand image in the eyes of customers and acts as a marketing strategy. Good employer branding reflects a conducive work environment and attracts the prospective employees.



Employer branding through Social Media Channels

Due to the advent of social media channels, the reviews of the previous employees and job seekers about a company will have good or bad effects on the employer brand of the company depending on the case. Hence the HR team must take positive steps to improve employee management and talent acquisition methods in the company if they want to get a positive outlook in the social media.


Employer branding in reputed IT companies

Employer branding also needs a scientific approach in planning a strategy for improving employer branding in IT companies. The companies like Google, Microsoft, and others have provided exceptional company benefits to their employees. Flexible working hours, weekly once work from home opportunity, accommodating leave policy, excellent sports and recreational facilities for employees and other facilities are provided by these companies for their employees. Hence Google and Microsoft are most preferred workplaces throughout the Globe.


Hence, I suggest that the Indian IT companies should churn up interesting employer branding recipe and provide world class amenities to their employees if they want to have a powerful employer branding image just like icing on the cake.

About HRMS

HRMS or Human Resource Management System is a set of systems and processes that combine human resource management with information technology through HR software for effective employee management is any given company. The HRMS is the automation of selected HR processes, which results in less use of time and valuable labor involved in such processes and allows the diversion of such time and labor for other fruitful causes in a company.



Functions of HRMS

The majority of human resource management tasks like keeping employee attendance, salary records, salary hike records, performance details, benefits management and other tasks can be performed using HRMS. The use of HRMS gives a modern touch to any given company. A complete analysis of processes and long-term goals of an organization needs to be done in order to select the proper HRMS for the organization. HRMS is also called as HRIS (Human Resource Information System) or HCM (Human Capital Management) depending on the company it is being used. The main functions of HRMS are:


  • Payroll Management

  • HR Management

  • Training Management

  • Hiring and onboarding

  • Maintaining Attendance Records

  • Performance Evaluation

  • Benefits administration

  • Employee Self-Service Feature


Payroll Management

HRMS helps in maintaining the employee salary records, pay slips and other records and the number of working hours put in by the employees. These records help in analyzing the productivity of the employees and the allocation of resources in the company.


HR Management

HRMS helps in maintaining important records regarding the personal details, education details, previous employer details and other profile related details of the employee. This valuable information can be accessed by the authorities of the organization at any given point.


Training Management

Training management is an essential function of HRMS, where required training modules are scheduled for different departments like managerial, technical and others. The HRMS keeps the record of a number of people enrolled in training in various modules.


Hiring & Onboarding

The HRMS can be effectively used during the recruitment process and onboarding procedures of a candidate. The recruitment module in HRMS helps the recruiter to source profiles from the database, source and scan resumes and schedule interviews. The onboarding details required like personal details, employment details, and others can be maintained using HRMS.


Maintaining Attendance Records

Keeping the attendance records and managing them is one of the major tasks done by HR, which can be easily managed with HRMS. This feature keeps tab of the days worked by employees and calculates the days of absence, which will in-turn help in analyzing the performance, calculating the salary and other related tasks.


Performance Evaluation

Assessment of skills, skills evaluation, experience evaluation and all other related tasks can be conducted as a part of performance evaluation by using HRMS. This helps in evaluating the workforce and for drawing future plans for workforce management. The performance evaluation can be used in appraisals and salary hikes.


Benefits Administration

Any organization will give its employees benefits like medical insurance, maternity leaves, paid holidays and other perks. The HRMS will have a module specifically designed for managing these benefits with an option to enroll from the employee side.


Employee Self-service Feature

HRMS allows a part of the HRMS database to be accessed by employees through which they can log in, update and get information regarding their pay, employee benefits, appraisals, personal details and other details. Secured login requiring secure credentials is issued to the employees to keep the data safe.


High-level security measures like SSL connections with data encryption are necessary for the secured function of HRMS which has sensitive company and employee data. Varied level access passwords are necessary for internal security. Safeguards to prevent old employees from accessing the HRMS is also a prerequisite.


HRMS or Human Resource Management System or Human Resource Management Software is a boon for human resource staff for human resource management. Today we see that many companies adopt HRMS only for payroll management, attendance management, and other such minor activities. But if HRMS is completely used to its 100% in human resource operations of a company, then it will save up to 80% of time and labor for the HR department.


Indian IT industry has been an eye candy of the Indian economy for long. But lately the scenario has changed, in the last financial year, in the first three-quarters, the performance of top three IT companies namely Wipro, TCS, and Infosys has been on the lower side. The fourth quarter brought some hope for TCS, but the investors are feeling bullish. These companies which have made a significant mark in the global IT arena are now struggling for their positive returns. Many of the conditions like slowdown of the global economy, tough competition, attrition and others have curtailed the growth of IT industry in India.



 Some of the problems faced by IT industry is as given below:

  1. TCS, Wipro, and Infosys have recorded a growth of 8 to 9% in terms of dollars in 2016. This was against a two-digit growth predicted by NASSCOM.

  2. Western countries are the key market of India in IT sector and hence a slowdown in the economy in Western countries has slumped the growth of IT sector in India.

  3. TCS was slammed with $10 million as a penalty in U.S.A for alleged use of a proprietary software from a company called Epic.

  4. Infosys was accused of violating visa and immigration rules in U.S.A.

  5. The above-stated things have a negative impact on the image of Indian IT industry in the global market.

  6. The global IT services sector is shifting from a BFSI (Banking and Financial Services Industry) and telecom oriented sector to other verticals like healthcare and retail. India depended 40% to 50% on BFSI and telecom for its bread and butter. The healthcare and retail IT services sector is dominated by MNCs and Indian IT companies are facing a tough competition from them.

  7. The IT expenditure has not picked up in U.S.A due to slow economic recovery and Europe is facing its own problems. This has negatively affected IT projects outsourced to India.

  8. The global competition in application development and maintenance, which is the traditional arena of Indian IT industry has also lowered the growth in Indian IT sector.

  9. Retention of talent in Indian IT companies remains a long-standing problem and needs to be effectively addressed.

  10. The new H1B Visa issue and the new policy changes made in U.S will also affect the IT sector in India.


Measures to be taken to tackle the problems faced by IT industry are:

  1. The leading IT companies need to revamp their business models to face the challenges of global economic slowdown.

  2. The IT giants in India like Wipro, TCS, Infosys and others must take productive steps to improve their image in the global arena.

  3. To tackle the problem of competition from MNCs in retail and healthcare sector, the offshore business models must be re-evaluated and made more innovative and productive in the IT companies.

  4. The governments in U.S.A, U.K and other Western countries must take policy decisions to revive the slowdown of their economies, which would benefit the entire world.

  5. The Indian IT companies must expand to other fields of expertise like Cloud Computing, Big Data, Research & Development and other related fields and should update themselves in providing IT services to Retail, Healthcare sector, Science & Technology, Robotics, Space Research and other such fields. This only can ensure their survival.

  6. Luring employee perks, mentor programs, skills training, company benefits and other such measures can be taken by Indian IT companies for employee retention and for attracting good talent to companies.


India still remains a force to reckon in global IT arena. Indian IT exports make a large chunk of total exports from India. Last year out of the $260 billion exports from India, $150 billion comprise of IT exports. Indian IT sector has crossed various hurdles like the transition to Y2K, minimum alternative tax, and global financial crisis and still stands strong like a mammoth in the difficult times.