Recruitment Process Outsourcing, or RPO, refers to a situation where a company outsources a part or all of their recruitment activities to a third party company to manage on their behalf.
RPO is similar to BPO (Business Process Outsourcing) and is undertaken by a company often for the same reasons, either to save on recruitment costs or to seek out the technical expertise necessary for recruitment that is not readily available internally. See more on Business Process Outsourcing here.
RPO is commonly needed when there is a sudden spike in the demand for employees to work on a particular project and increasing the internal HR team in order to meet this temporary demand would be inefficient and costly.
By outsourcing recruitment, companies alleviate their resources of the administrative and transactional duties involved with recruitment, allowing those resources to dedicate their time to other areas of the business.