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- +1-941-222-0033
Know the differences between Managed Service Provider (MSP) and Recruitment process outsourcing (RPO) in Offshore recruitment services
Know the differences between Managed Service Provider (MSP) and Recruitment process outsourcing (RPO) in Offshore recruitment services
Post-pandemic, the change in recruitment model in order to attract new talents from different geographical zones have changed many of the previous methods of talent acquisition.
Staffing and recruitment industries are now using different approaches to fulfil their temporary and permanent staffing needs. The managed service provider is being used to hire the best talents for mostly temporary staffing and the RPO model is being used to attract and retain permanent (and contractual) positions.
In this blog, we will be focusing on prime differences between managed service providers and Recruitment process outsourcing to make it easy for you to select the right approach for your organization’s staffing and recruitment needs.
Managed Service provider in offshore recruitment
The general term MSP is used for an outsourced third-party company that manages staffing and operations responsibility of certain management services to its customers or clients.
This outsourcing recruitment service generally provides a temporary workforce directly to the client by taking care of the end-to-end recruitment process.
Managed service provider company handles the entire management of the contingent staffing by ensuring operational efficiency, compliance and cost optimization for the client.
The temporary workforce is provided by the staffing agencies, and MSP acts as the liaison between such agencies and the client.
The areas of business being outsourced in MSP:
- IT
- Consultants
- workforce management and contingent workforce management;
- Contractors
- contractual staffing
- Vendor management
- Freelancers
Recruitment process outsourcing (RPO recruiting)
Most of us are well aware of the RPO model, recruitment process outsourcing is a total workforce solution where staffing and recruitment companies outsource a part or all of the recruitment process to an external company. The recruiting outsourcing companies are usually from offshore, but sometimes they might be from nearshore and with onshore helping centres.
There are different recruitment models and strategies used by an RPO company such as cost-based, project-based, permanent or contract-based.
An RPO company is where a dedicated recruiter is hired by the staffing companies who would dedicatedly work for a few particular talent pipelines…
In RPO, generally permanent or contractual staffing is getting done by working on different parts of the recruitment like candidate sourcing, resume sourcing services or end-to-end recruitment.
Typically an RPO incorporates technology like:
An ATS (Applicant Tracking System)
A CRM (Candidate Relationship Management) tool
Few dedicated career sites/Job boards
An internal talent community platform
Major differences between MSP and RPO
| Highlight | MSP | RPO |
|---|---|---|
| Specializes | Usually in bulk contingent staffing | In all kinds of hiring needs, especially in one-to-one candidate delivery |
| Source | Candidates through many vendors | Candidate independently through its own strategy |
| Responsible | Of contingent staffing administration and supplier management. | of a part or all of the recruitment process. |
| Technology | Deploys VMS (Vendor management system) technology | Uses ATS (Applicant tracking system) |
| Assign | To dedicated program manager | To a dedicated recruitment team. |
| Pricing | Uses a marketing-driven pricing model with a percentage of workers’ rate | Offering a variety of pricing plans to save the business cost of the clients. |
StaffChase for RPO partnering
We provide RPO recruiting services for staffing agencies. We combine our passion for people with cutting-edge technology and a global workforce to help you find the right personnel for your organization’s needs. We offer a wide range of staffing services- Resume sourcing services, VMS support & Lead Generation to save you precious time and money.
Connect with our recruiting experts for a free consultation to learn more about our RPO solutions for different industries and how we can help improve your recruitment experience.
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