HRO, RPO, and BPO: What’s the Difference?

by Luna Rutherford

Dec 16

In the post-COVID era, there are days when it feels like it’s more challenging than ever to run a company. Since the beginning of 2020, businesses have faced a growing number of challenges, including disruptions to supply chains, travel restrictions, and the economic uncertainty that comes with a global pandemic.

Thankfully, assistance is available, and in today’s business world, it goes by three abbreviations: HRO, RPO, and BPO.

People often use “recruitment” and “human resources” as synonyms, but “resource planning” and “human resource organization” are not the same thing. As we’ve seen, RPO involves hiring outside companies to do things like hiring and sourcing that used to be done in-house. More HR tasks like data entry, new hire paperwork, performance reviews, and benefits administration are outsourced under HRO. While there is some overlap in areas like onboarding, that is pretty much all there is in common. RPO helps companies find and hire qualified candidates, while HRO helps companies manage their employees.

Human Resource Outsourcing (HRO) is the process of giving all or some of an organization’s human resources tasks to a third party. Even though the details of these agreements and partnerships vary from company to company, here are some common examples of human resource outsourcing:

– Organization of wages and salaries
– Instruction and assessment of employees
– Compensation and service for employees
– Finding new employees and bringing them on board
– Job evaluation and planning

Finally, there is recruitment process outsourcing (RPO). The term “recruitment process outsourcing” (RPO) refers to the practice of outsourcing some or all of an organization’s recruitment activities to a third party. Several instances of outsourcing the recruitment process include:

– Discussion and planning
– Streamlining the Employment Application Procedure
– Building a Talent Pipeline
– Process of interviewing and screening candidates
– Post-offer management
– Requirements post-hiring

Common HRO and RPO roles:

RPO and HRO providers can help with a wide range of individual roles and can also set up entire recruitment and human resources teams.

1. Payroll Processors: Since most accounting and payroll platforms are now hosted in the cloud, payroll processors, who play a crucial role in any team, can do their jobs from anywhere in the world. The employee is responsible for gathering time and payroll data; processing payroll distribution, direct deposits, and expense transfers, and analyzing and updating forms and reports for accuracy.

2. Recruiters: They are an essential part of any team, as they manage the majority of the hiring process. That means doing things like advertising for employees and setting up interviews.

3. Trainers: as their job title suggests, they work in human resources and are responsible for teaching employees new skills and assisting new hires with the onboarding process. This job can now be done remotely thanks to advances in online learning and communication tools like video conferencing, which allow trainers to effectively transform new hires into fully functional members of the workforce.

HR Outsourcing can be better when you delegate them to a reliable BPO (business process outsourcing) company that offers customized and scalable solutions like ADDMORE Outsourcing.

What is a BPO?

The term “business process outsourcing” (BPO) refers to the practice of outsourcing non-critical business processes to an outside vendor. Outsourcing a process, whether it be administrative or customer-facing in nature, is what is meant by “business process outsourcing” (BPO).

In terms of geography, the BPO sector can be divided into three distinct subsectors:

What we call “offshoring” is contracting with a service outside of the country of development or production for a business’s products or services. For instance, you can provide a more in-tune service to international clients by localizing your customer support staff in other countries.

The term “nearshore outsourcing” refers to situations in which a company contracts with a service provider located in a nearby country. In this case, the BPO provider might be located in the United Kingdom or another close-by country if your company is based in Ireland.

In onshore outsourcing, the BPO provider and the contracting company are located in the same country.

Improving Your Company Through Outsourcing

The types of outsourcing—Recruitment Process Outsourcing, Human Resource Outsourcing, and Business Process Outsourcing—share a common goal: the betterment of your company as a whole.

If you’re looking to expand your company’s reach internationally, HRO and RPO can provide you with the skilled workers you need, while a BPO like ADDMORE Outsourcing will free you to concentrate on what you do best.

Want to know more about outsourcing?

ADDMORE Outsourcing is a human resources partner for enterprises of all sizes and in all industries. Planning your workforce can help you avoid or reduce problems with people, take advantage of talent openings, and strengthen your organization’s “talent pipeline.”

You can choose from a range of HR service options from ADDMORE Outsourcing, all of which can be tailored to your business’s specific needs. We handle everything that has to do with HR, from one-time fixes to ongoing access to an HR manager and large-scale HR projects. A professional HR consultant offers these services by learning about your business to then develop a custom people management strategy.

Get your new hire up and running quickly with the help of our human resources expert and see a return on your investment right away. We provide an extensive range of cost-efficient offshoring and outsourcing solutions for clients in the USA, the Republic of Ireland, the UK, New Zealand, Australia, the Middle East, and other regions worldwide.

Take advantage of the limitless benefits of outsourcing to the Philippines. Contact us today to schedule a free consultation. 


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