Common Myths and Misconceptions About Offshore RPO

by | Jun 30, 2019 | Offshore RPO

Anything that is new and controversial is surrounded by myths and misconceptions. Offshore RPO is no stranger to this. It may be listed as among the fastest growing section of Human Resource’s Outsourcing, but it isn’t spared from misconceptions.

There are still some HR leaders and experts that are not familiar with how offshore RPO truly works.

They sometimes overcomplicate the process by automatically thinking that offshore RPO is a complete large-scale outsourcing of recruitment processes. Or they can be underestimating the process by thinking that offshore RPO cannot solve their main issues such as achieving recruitment velocity.

It’s natural for them to have their misconceptions. Offshore recruitment solutions are most of the time tailormade to staffing firms and capable of addressing recruitment problems by making use of different recruitment services.

Offshore RPO partnerships can be of varying degrees, involving many models, demands, expectations, stories of accomplishments and losses. Hence, narratives of offshore RPO that are not coming from the main actors themselves can be missing the important facts.

It’s not surprising to find so many myths and misconceptions about offshore RPO both online and offline. And the worst part is that there is scarcely any reliable source about offshore RPO available in the public domain. But as we’ve mentioned before, offshore RPO can include services that are uniquely tailored for each client, making it hard to create a comprehensive offshore RPO material.

In any case, many HR leaders find these misconceptions and lack of facts a major turn off. But ignorance is not always bliss. Relying on myths and misconceptions can be hurtful for your company.

88 percent of hiring managers have reported that they are satisfied with the results of outsourcing some or all of their recruitment process. But if you don’t believe on these statistics and don’t bother to clarify the misconceptions, then you may be robbing your business of the chance to grow and to take advantage of a very powerful tool that can cut dramatic recruitment costs, and gain you significant revenue.

We understand that you’re a busy person as the HR leader of your company. And having to scour the internet through all the volumes of misconceptions surrounding offshore RPO scattered across the market can be a time-consuming task.

Hence, in this article, we already did the job for you. We have compiled a list of the most common myths surrounding offshore RPO. Not only that, but we are also going to bust these myths and present to you the facts to finally clear the clouds of hesitations and suspicions in your minds.

Debunking Common Offshore RPO Myths and Misconceptions

As an executive of your staffing firm, there’s so much pressure on you to perform well. Retaining and acquiring talent in the most efficient ways can make or break your company. It’s only understandable that you have reservations when it comes to trying out new recruitment solutions.

But do not let your fear of the unknown get in the way of your company’s progress. One way to overcome your fears is through proper research. Put an effort to researching alternative recruitment solutions. Get a hold of credible information to check if your fears and doubts have actual bases.

Myth #1—Offshore RPO Is A Temporary Fad

Fact: Offshore RPO is a mix of offshoring and outsourcing. Businesses noticed some flaws in outsourcing alone, and so they combined it with offshoring. The biggest reason for this fusion is, “to take advantage of the benefits of outsourcing and offshoring both,” according to Diffen.

There was a need for a more efficient form of outsourcing and as always, the market has answered. And judging by the advances of its industry, offshore RPO has proven itself to be an effective strategy.

In the past decades, the offshore RPO industry has had a steady climb to the top. Offshore outsourcing industry as a whole was estimated to be around $32 billion to $35 billion in the year 2002. And offshore RPO is predicted to keep rising in the coming years as more and more staffing firms realize how cost efficient offshoring RPO can be.

With so many benefits to offshoring your RPO, it’s no longer just a fad anymore. It’s here to stay, and for a forward-thinking executives, you are going to want to be in on the action so as not to get left behind by your competition.

Myth #2—You Lose Control With Offshore RPO

Fact: Many HR executives are hesitant to partner with an offshore RPO firm simply because they fear that if they do so, they are going to lose control of their recruitment processes.

This mindset cannot be further from the truth.

The choice of whether you want to outsource all or only some parts of your recruitment process is still up to you. You are just using the recruitment services which they have expertise in alongside your usual functions. But in no way are you giving up your control over the recruitment functions.

Offshore RPO firms of today are capable of working alongside your company to streamline your recruitment processes. At the end of the day, the heart of a successful offshore RPO partnership is collaboration.

All the actors involved in the offshore RPO partnership have to be in constant communication and agreement over recruitment decisions. There has to be a regular exchange of reports between the offshore RPO firm and the staffing firm.

With these much interactions during the entire partnership, there is just no way you are going to lose control over the recruitment process. Especially because when it comes to hiring decisions, the final say is still going to be up to you.

If anything, an ideal offshore RPO partnership allows you to gain greater transparency and control. You can have an “external department” that can efficiently take charge of the repetitive recruitment tasks such as gathering data for metrics and analytics.

Myth #3— Offshore RPO Replaces Your Internal Recruiting Team

Fact: The offshore RPO team replacing the internal recruiting department of your staffing firm is a common concern of staffing firm executives. In a way, this misconception is related to the previously discussed myth which is on the topic of lack of control on the recruitment functions.

And just like the previous myth, it could not have been more wrong.

As we’ve said before, an offshore RPO engagement is a strategic partnership. The internal recruiting team and the offshore team both have to overcome recruitment challenges together by coming up with collaborative recruitment solutions.

If developing your internal recruitment team is one of your top priority, offshore RPO also allows you to do just that.  You can avail of recruitment services from the offshore RPO firm that will only serve as support for your internal recruitment team. These services may include resume sourcing, VMS recruiting, recruitment admin support, and remote staffing.

But you can choose to leave the task of final interview of the potential candidate to your internal recruiter so as to develop their skills in judging the right candidates for the clients.

Myth #4—Offshore RPO Is Only About Cutting Costs

Fact: Offshoring RPO may have been designed for businesses to cut costs but it has already proven its usefulness in many other areas.

It enables staffing firms to focus on working on core functions, such as coming up ways to expand the business or developing the brand name of the staffing firm.

It also allows for round-the-clock shifts, resulting in recruitment velocity, giving staffing firms a competitive advantage. As we’ve mentioned before, better transparency can also be achieved through offshoring.

Some clients of staffing firms occasionally request for talents that are in hard to find their niche. Offshore RPO firms are best suited in handling these kinds of searches.

They can point you in the right direction to find these highly skilled candidates who specialize in certain fields, such as computer science, telecommunications, or industrial designs. They have industry knowledge and make it their business to keep a database of the best talents even in uncommon industries. They are going to sift through different job boards to look for the right talent for you.

Myth #5— Offshore RPO Can Get Rid Of All Recruitment Problems

Fact: If you expect offshoring your RPO can somehow answer all your recruitment woes like a magical solution, then you are in for a disappointment.

Before actually getting into an offshore RPO partnership, know that it’s not a fix-all solution to all your recruitment issues. If in the first place, a staffing firm has a weak internal recruiting strategy and is solely relying on the offshore RPO firm to do all the recruitment work for them, then there’s a chance that this arrangement is not going to turn out well.

The initial step has to start with the staffing firm looking inwardly to identify their recruitment issues. Understanding your hiring needs can let you prepare a better framework which the offshore RPO firm can use to create a well thought out proposal.

From there, you can take advantage of the offshore RPO firm’s technologies, strategies, and resources, to troubleshoot your recruitment problems.

Myth #6— Offshore RPO Only Works for Large Staffing Firms

Fact: The staffing firms that are going to benefit most out of an offshore RPO partnership are small to medium-sized ones. Of all the wonderful things offshore RPO has to offer, one of its greatest assets is its scalability.

Offshore RPO services can be customized depending on the demand of the client. Staffing firms can efficiently adjust the number of resources they need, giving them full control over their offshore recruitment expenses.

Final Thoughts

In this age where information is easily accessible via the internet or through word of mouth, we now have the power to conduct research almost instantaneously.

Recruitment decisions that are not based on well-researched sources can prove to be harmful to your staffing firm. You can be deterring your company from gaining more revenues and cutting on costs.

Making a habit out of identifying which ones are actually credible information and just misconceptions can already put you miles ahead of your competition. So, it’s important to always remember to be wise when gathering information.

 

Sources:

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Roa, J. (2018). RPO Firms in the Philippines- Profile, Services, and Specializations. [online] Sysgen RPO. Available at: https://sysgen-rpo.com/rpo-firms-in-the-philippines-profile-services-and-specializations/ [Accessed 5 Oct. 2018].

Cdn2.hubspot.net. (2018). [online] Available at: http://cdn2.hubspot.net/hubfs/157743/Quick%20Guide%20to%20RPO_Final.pdf?t=1539105695648 [Accessed 10 Oct. 2018].

Staffvirtual.com. (2018). RPO to the Philippines Set for a Banner Year in 2016. [online] Available at: http://www.staffvirtual.com/hr-outsourcing-to-the-philippines-set-for-a-banner-year-in-2016 [Accessed 10 Oct. 2018].

Forbes.com. (2018). [online] Available at: https://www.forbes.com/2003/12/04/1204mckinsey.html#51ed3f17de63 [Accessed 10 Oct. 2018].

Roa, J. (2018). Building the Business Case for Offshore RPO in South East Asia. [online] Sysgen RPO. Available at: https://sysgen-rpo.com/building-business-case-offshore-rpo-south-east-asia/ [Accessed 10 Oct. 2018].

Diffen.com. (2018). Offshoring vs Outsourcing – Difference and Comparison | Diffen. [online] Available at: https://www.diffen.com/difference/Offshoring_vs_Outsourcing [Accessed 10 Oct. 2018].

Roa, J. (2018). How Offshore RPO Companies Lower Recruitment Cost. [online] Sysgen RPO. Available at: https://sysgen-rpo.com/offshore-rpo-companies-lower-recruitment-cost/ [Accessed 10 Oct. 2018].

Sysgen RPO. (2018). Remote Recruiters | Offshore Recruiting | Sysgen RPO | RPO Philippines. [online] Available at: https://sysgen-rpo.com/offshore-recruiting-services/full-life-cycle-recruiting/ [Accessed 10 Oct. 2018].

Recruitingblogs.com. (2018). Reasons to Hire an Offshore RPO. [online] Available at: https://recruitingblogs.com/profiles/blogs/5-reasons-to-engage-an-offshore-rpo-provider [Accessed 10 Oct. 2018].

Roa, J. (2018). Benefits of Offshoring Recruitment Process to the Philippines – RPO. [online] Sysgen RPO. Available at: https://sysgen-rpo.com/benefits-of-offshoring-recruitment-process-to-the-philippines-rpo/ [Accessed 10 Oct. 2018].

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Jo Rebustillo

LEARNING AND DEVELOPMENT MANAGER

Jo started her recruitment career in 2007. Since then, she has worked with several RPO and BPO companies in different capacities. She has worked as a Recruiter covering requisitions in US, AU, EU and APAC handling volume, non-IT and IT. She has led several teams as a Recruitment Manager, Account Manager, Service Delivery and Business Development. She has also led teams in different industries such as Media and Advertising, IT, Outsourcing, BPO, Manufacturing, Military, Healthcare and Sciences. She has built teams based on their strengths and developed leaders with strong ethical values as well as aiming to beat the average. She strongly believes in integrity, strive for growth, persistence and kindness as hallmarks of a successful person and company.

Nikita Magpantay

CLIENT RELATIONS MANAGER

Niki is a dynamic human resource professional with a focus on talent acquisition and HR business partnership, bringing her extensive expertise gained over 6 years. She is a versatile Recruiter specializing in diverse sectors including technical, banking and finance, logistics, sales, healthcare, and volume hiring. Niki, as an experienced HR Business Partner has proven success in aligning HR initiatives with business objectives, contributing to organizational growth. She seeks to foster positive employee relations and implementing effective engagement initiatives and business strategies while ensuring adherence to labor policies. Adept at combining a friendly demeanor with a dedicated result-oriented approach helps her bring a unique blend of empathy and strategic acumen to the workplace.

Intejar “Ram” Julkiram

CLIENT RELATIONS MANAGER

With 9 years of background in RPO, Ram is adept at managing and optimizing the recruitment process for clients, ensuring a seamless and efficient experience. His skills include a deep understanding of both the IT and non-IT industries, enabling him to provide tailored recruitment solutions for the team.

Shara Jane Bonifacio

CLIENT RELATIONS MANAGER

Shara Bonifacio boasts a rich and diverse career spanning more than 10 years within various industries in recruitment. As a highly skilled and effective communicator adept at engaging with people across multiple platforms, her passion lies in building lasting relationships. She excels not only in connecting with candidates but also in fostering strong ties with clients and stakeholders.

Throughout her career in industries such as Financial Services, Insurance Brokerage, Information Technology, Pharmaceutical, and Healthcare, Shara has showcased her results-driven mindset. Her penchant for challenges motivates her to continuously strive for excellence and growth.

Shara's leadership experience is a testament to her ability to guide and inspire teams, ensuring collective success and achieving organizational goals.

Evangeline “Gigi” Tilaon

CLIENT RELATIONS MANAGER

Gigi, an inspiring leader, possesses nearly 5 years of expertise in the art of Talent Acquisition and boasts a distinguished 15-year legacy of visionary leadership. She is renowned for her unwavering dependability and boundless supportiveness, qualities that radiate through every endeavor she undertakes. Gigi's leadership style is characterized by remarkable transparency and hands-on engagement, underlined by a profound trust in her team's exceptional talents. She confronts challenges with fearless determination, inspiring her team to achieve greatness. As a passionate outdoor enthusiast and a nurturing fur parent, Gigi advocates for a work-life equilibrium with extraordinary grace and enthusiasm.

Randy Owen Roman

CLIENT RELATIONS MANAGER

Randy brings extensive experience in the recruitment industry, spanning over 5 years. During his tenure, he has successfully managed a diverse portfolio of clients across multiple sectors, including IT, Financial, Retail, Light Industrial, BPO, Market Intelligence, and Healthcare. Randy is passionate about the outdoors and finds joy in activities like hiking and exploring nature. Equally, he appreciates the arts, indulging in music, movies, and series. As a leader, Randy exemplifies fairness and empowerment, consistently guiding and inspiring his team to surpass expectations.

Avielle Bernardino

CLIENT RELATIONS MANAGER

Avielle, with 7 years of Healthcare Recruitment, is not just a leader. She is a mentor and an architect of streamlined offshore program planning. She has an innate ability to optimize processes, ensuring they align seamlessly with our clients' and program-defined standards. She empowers her peers, nurturing exceptional performance and maintaining a high level of service quality. This dedication to efficiency has set a new benchmark within our organization. She actively participates in strategic planning initiatives, driving a culture of continuous improvement. This proactive approach ensures we stay ahead in a rapidly evolving industry.

Kris Florblanco

CLIENT RELATIONS MANAGER

Kris, with over six years in IT Recruitment and three years of team leadership, is known for dependability and supportiveness. Transparent and hands-on, she places trust in her team. An outdoor enthusiast, Kris faces challenges head-on to keep her team up and running.

Grace Marasigan

CLIENT RELATIONSHIP MANAGER

Grace, an empowering leader with six years in Talent Acquisition, is passionate about innovation and improvement. Balancing work quality and agility across various industries, her compassionate approach extends to her personal life as a committed vegan.

Ly Poticar

MANAGING DIRECTOR - OFFSHORE STAFFING

Ly brings 2 decades of expertise in the Recruitment and Staffing industry, covering various business verticals in both local and global recruitment. He has successfully led growth projects for SMBs and offshore expansion initiatives for Shared Services and other global enterprises. He seeks to continuously evolve his recruitment practices and client partnership agenda to provide innovative solutions and be a step ahead of the market trends. Ly has recruitment experience in the talent market for the following majors, as well as emerging industries: Tech – hardware/software/mobile/consulting/Web3, Online Gaming & Media, Digital Marketing, Finance – corporate/banking and fintech, Construction & Engineering, Energy, BPO, Manufacturing & Logistics.

Lara Belo

MANAGING DIRECTOR - ONSHORE RPO

Lara brings a decade of invaluable experience in the field of IT recruitment, catering to diverse and niche IT roles. With adeptness in team management, she has led successful recruitment teams. She guides her team in effectively sourcing, tailoring recruitment strategies, and connecting top-tier IT professionals with optimal career opportunities nationwide.

Her extensive background in business development and client relations has not only led to the acquisition of new accounts that have expanded over time but also positioned her as a trusted partner for numerous clients.

Ezalyn Caberto

MANAGING DIRECTOR - OFFSHORE RPO

Eza is an accomplished RPO leader. She has a proven experience in building and leading high-performance recruitment teams.

Eza is also experienced and active in offshore RPO's management, recruiting, and consulting aspects. She has implemented several successful offshore recruiting accounts that have grown over time.

Eza is also a successful mentor who has produced budding leaders in her field. As a mentor, she has a strong focus on supporting emerging millennial team players.

Candy Poblete

HR MANAGER

Candy has been an HR Practitioner for 10 years. Her extensive experience in managing end-to-end HR facets came from various industries. She’s a champion in handling employee relations and labor relations. As a strategic thinker, she is adept at aligning HR policies and practices with the company’s goals and objectives, safeguarding the organization from legal complications, and providing employees with a secure and fair environment.

Anna Katrina Roa

VICE PRESIDENT OF FINANCE AND ACCOUNTING

Katrina, a De La Salle University graduate with a BSC in Accounting, plays a vital role in maintaining the company's financial health. She generates reports, manages budgets, and oversees the accounting department.

With over two (2) decades of experience in the recruitment industry, she is well-versed in its financial dynamics. Her expertise allows her to adeptly address the unique financial needs of recruitment businesses, making her an invaluable asset to the organization.

Jimmy P. Roa

CEO AND CHIEF RECRUITMENT OFFICER

Jimmy is a business executive in the field of BPO, RPO, IT Staffing, Technical Recruiting, Virtual Recruiting, Remote Staffing, and CAD Outsourcing. Having been involved in these industries for the past 30 years, Jimmy knows what works and what doesn’t. Aside from being the CEO of Sysgen RPO, he is also CEO of Sysgen – an IT Staffing firm which he founded in 1991.

Keen to working with clients who are willing to practice the “One-team Concept”, Jimmy has been mainly responsible in growing the Sysgen Group to what it is now.

He believes that clients are partners and that a true alliance is essential in achieving overall goals of cost savings and process improvement.