Recruitment process outsourcing, or RPO, hands part or all of a company’s hiring function, sourcing, screening, sometimes the full process, to an external provider that embeds into the internal talent acquisition team, as distinct from a one-off staffing agency placement.

When companies use it, and how it’s priced

RPO tends to make economic sense at meaningful, sustained hiring volume rather than for a single urgent vacancy, since providers typically start outperforming per-hire agency fees on cost per hire somewhere around fifteen to twenty-five hires a year, with the advantage growing clearly beyond that. Pricing runs a few common models: a per-hire fee, a monthly retainer for embedded recruiting capacity, a fixed project fee for a defined scope, or a hybrid combining a lower retainer with a reduced per-hire fee, often preferred when hiring demand is uncertain. No India-specific pricing benchmark is reliably available, since most published figures are US-market-oriented, so treat any specific rupee or dollar range you see quoted as illustrative rather than a fixed rate card.

Frequently asked questions

How is RPO different from a staffing agency?

An agency is typically transactional, paid per successful placement with no ongoing process integration. RPO embeds into and often manages the company’s actual recruiting process and technology on a continuing basis.

Does RPO replace an internal TA team?

Not usually entirely, most engagements supplement or extend the internal team’s capacity rather than fully replacing it.

What kind of hiring need suits RPO best?

Sustained, high-volume or recurring hiring, expansion into a new market, or a temporary capacity gap, rather than a single one-off vacancy.

See our guide to staffing and recruitment agencies in India.