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In today's challenging economic landscape, recruitment businesses are facing unprecedented pressures. With rising costs, talent shortages, and increasing operational costs, many firms are turning to offshoring and outsourcing to support growth and sustainability. Our newly released briefing provides crucial insights for staffing firms considering these options.
Written in collaboration with APSCo Trusted Partners, IMS Group and QX Global Group.
Why recruitment businesses are considering offshoring & outsourcing
Some APSCo members report savings of 40-45% through strategic offshoring initiatives. QX Global suggest that businesses incorporating offshore talent can improve EBITDA margins by 18-20% - a significant advantage in today's competitive market.
As Ann Swain, Global CEO of APSCo, notes in the guide:
"It can be argued that outsourcing and offshoring are now essential for both survival and growth - helping organisations to drive profitability, enhance service delivery, and gain a competitive edge."
Beyond cost savings: Strategic benefits of offshoring
While cost reduction remains a primary driver, the guide highlights several other strategic benefits:
1. Enhanced operational efficiency
Forward-thinking recruitment firms are leveraging offshoring to optimise their core processes. Real-world examples from IMS in the guide showcase impressive results:
- Reduced payroll processing time from 4 hours to just 30 minutes
- Improved job coverage rates
- Faster candidate submissions and interview scheduling
- Reducing IT resolution time
With aging workforces in developed nations creating persistent skills gaps, recruitment businesses are tapping into emerging markets with large, highly skilled talent pools.
3. The New Model: People + Automation = Scalability
The guide explores insights from IMS and QX Global about how leading firms are creating competitive advantage through a hybrid approach that combines offshore talent with advanced automation. This model enables 24/7 recruitment cycles and significantly reduced time-to-hire metrics.
Making strategic decisions when considering offshoring
The APSCo guide provides a comprehensive framework for determining what functions to offshore. Functions well-suited for offshoring include recruitment support services, back-office operations, marketing solutions, business process management and IT solutions. The guide also provides further examples of what recruitment businesses should keep in-house.
We also compare the leading global outsourcing hubs, from India which dominates 55% of the global outsourcing market to South Africa, an emerging player with attractive time zone advantages for European operations.
The guide doesn't shy away from addressing potential challenges, offering practical advice for:
- Overcoming communication barriers
- Ensuring data security
- Maintaining quality control
- Managing cultural differences
- Facilitating effective knowledge transfer
- Establishing robust governance frameworks
For recruitment businesses looking to remain competitive in 2025 and beyond, strategic offshoring and outsourcing represent significant opportunities. The complete guide provides a roadmap for success, including:
- Assessing organisational readiness
- Selecting the right partner
- Defining clear deliverables
- Creating effective onboarding processes
- Establishing collaborative workflows
APSCo Members can download the full Offshoring and Outsourcing Briefing to access all insights, including implementation frameworks and strategic recommendations.
Offshoring and Outsourcing in 2025
APSCo Global are providing resources, including a whitepaper and webinar recording, to support members as they embark on their offshoring and outsourcing ventures.
