Regional Outlook on RPO Services in Mexico

  • The global RPO industry is expected to grow at a CAGR of 14.40 percent in 2017–2025
  • The Latin American RPO industry is expected to grow at 10 percent in 2017–2025 and key trends driving the growth of RPO services are mentioned below:

rpo services mexico

 

Economic growth in Mexico is expected to drive the employment activities across accounting and finance-related job roles in 2019.Increase in trend of inflow of migrants from other Latin American countries in the Mexican market for labor work

Key Insights: Employment Trends

  • Moderate employment rates for blue-collared and semi-skilled workforce
  • Increase in working age population has enhanced the labor productivity growth in services and manufacturing sectors
  • Unemployment is moderate. Migrant workers in rural areas of Mexico are less educated and requires skill development programs for enhancing language proficiency

Drivers and Constraints

Drivers

  • Employees stay in one job for 7–10 years, and thereby, satisfaction level of employees is comparatively higher compared to other geographies
  • Access to better technology and social media adoption are few drivers for companies to adopt technology for recruitment services in the Mexican market

Constraints

  • Multi-country approach is difficult to implement, due to different labor laws and regulations across LATAM
  • Buyer maturity and its successful RPO implementation rates are comparatively lower than other geographies
  • Lack of knowledge and unrealistic expectations about talent availability are major challenges for recruiters
  • Increase in business activities in Mexico may lead to a change in the management from the client’s side

Technology Trends in RPO Services

  • Artificial intelligence-aided technology tools are adopted widely by buyers for enhancing the candidate hiring process
  • Integrating technology tool with their recruitment services through M&A and collaborations is one of the major supplier trends in 2018
  • Increasing adoption for technology is encouraging suppliers to adopt innovations and automated tools while hiring
  • Suppliers integrating with artificial intelligence provide higher decision-making ability compared to previous tools

ATS Implementation

The ownership of the technology lies with the buyer. The supplier provides upfront implementation and ongoing maintenance.

Platform-based ATS Solution

A pre-configure ATS solution is hosted, owned, and maintained by the supplier. The pricing for technology and process is combined into one price component.

Shared Services

  • Online recruitment marketplace
  • Online job boards
  • Career portals
  • Talent acquisition tools
  • SaaS-based online platform for recruitment marketing

E-Tools

  • Predictive analytics & big data
  • Rise in automation support for hiring services
  • Artificial intelligence-aided tools for candidate assessments