Outsourcing Services In Recruitment

Difference in RPO and MSP

Outsourcing is defined as “the strategic use of outside resources to handle activities traditionally performed by internal staff using in-house resources.” In this business practice, a company shifts operations, tasks or jobs to an external contracted third party.

While there are a lot of variations of outsourcing, all of them can be interpreted in many ways. The service provider, often called also third-party provider, ultimately becomes a valued business partner. Outsourcing can also involve the transfer of employees from your company to the outsourcing provider.

There are many different types of outsourcing services:
Recruitment Process Outsourcing (RPO)
Business Process Outsourcing (BPO)
Managed Service Programmes (MSP)
Vendor Management Services (VMS)
Master Vendor Service (MVS)
Staffing Service (SS)
Managed Staffing Service (MSS)

Amco Recruits offer the most useful recruitment outsourcing tools – Recruitment Process Outsourcing (RPO) and Managed Service Programmes (MSP). We’ve given the definitions of these outsourcing services below and examined how they differ.  
According to the RHOA (Human Resources Outsourcing Association), the definition of Recruitment Process Outsourcing is “a form of Business Process Outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider”.

Amco Recruits as an RPO provider can provide its own or may assume the company’s staff, technology, methodologies and reporting. In all cases, RPO differs greatly from providers such as staffing companies or retained/contingency search agencies in what it assumes an ownership of the design and management of the recruitment process and responsibility for the results.

In a Recruitment Process Outsourcing model, recruitment is provided by third party recruitment agency – Amco Recruits, which is an extension of the HR department, off-site or on-site. It’s often used for high-volume recruitment (for example, call centre staff), short- and medium-term roles on a project-to-project basis, as well as fully replacing all internal recruitment in an organisation.

Recruitment Process Outsourcing is more than just filling positions when the demand is high. It’s also about enhancing the overall recruitment process in an organisation. As the whole recruitment process is taken care of, this significantly reduces internal HR time and allowing teams to focus on other important duties, particularly for companies in a growth phase.  

Managed Services Provider (MSP) assumes responsibility for the provision of a defined set of services to its clients and customers. Under the MSP model the customer retains direct oversight of the organisation or service being managed while the MSP manages and delivers the agreed service on behalf of the customer.

Typically, the customer and the MSP (Amco Recruits) are contractually bound by an agreed set of service level agreements and performance metrics which underpin the MSP relationship.

While MSP arrangements are most commonly found in the Information Technology Sector, they are also utilised across other industry sectors. MSP Service Delivery can span the full end-to-end management and delivery of a whole service e.g. a complete business unit or can be applied at a more targeted and specific process level e.g. Project Management Office (PMO) delivery.

Managed services are commonly used for:

  • IT functions
  • HR activities
  • Daily operations
  • Lifecycle build/maintenance activities
  • Production support

The MSP company, like Amco Recruits, is the employer and as such are responsible for:

  • Payroll
  • Benefits
  • Training
  • Employee management

More About AMCO

Amco Recruits work with many clients in diverse industries providing the best talents for executive, permanent, temporary, CIS Payroll, Umbrella PAYE and contract positions. Through professional knowledge and market expertise we created our competitive Client-Centric Offers and exclusive Workforce Solution Programmes.

As we recognise that high levels of our Clients productivity rest on talent they possess in the workforce, we made the main priority to help our Clients build and maintain a strong team of professionals in each industry and every business we come across with.

Call us now on 01923 618833 or get in touch on Socials and find out how we can grow together!