Managed Services in Recruitment and Staffing (Volume One)
Managed Services in the recruitment industry has grown significantly over the past five years yet there is still very little hard data on the scale, nature and impact of this growth and there remains considerable ambiguity on how the term ‘Managed Service' should be applied.
This research was commissioned by REC's Industry Research Unit to allow greater understanding of Managed Services in recruitment. In particular, it sought to deliver the following:
- A new framework to support better understanding of ‘Managed Services'
- Current scale and predicated growth rates
- Business/commercial drivers
- Implications for key stakeholders (including threats from non-recruiters)
It was designed as the initial phase of a continuing programme of research looking in greater detail at Managed Services and related topics.
The research was undertaken by Cordoba Consulting. Interviews and analysis took place during February and March 2006.
Key Findings
• A new framework is proposed to help understand and define Managed Services and related offerings.
• The research conservatively estimates the value of Managed Service relationships in the UK to be £1.5bn. This represents approximately 6% of the recruitment and staffing market.
• Future annual growth in numbers of Managed Service contracts is estimated to be around 5%, on the basis of employers' expectations of future purchases.
• The research confirms a potential threat to staffing agencies from the non-staffing sector with 47% of employers questioned anticipating future Managed Service offerings from suppliers outside the recruitment sector.
