23 April 2015

FROM MAY 2015'S RECRUITER MAGAZINE

The fixed-price recruitment process outsourcing (RPO) model offered by Rethink Group acquisition Consort Group could prove to be "a game changer" in the market, Rethink chief executive Steve Wright has predicted.

Speaking to Recruiter after the deal was announced last week (14 April), Wright said Rethink was looking forward to "a synergistic strategic fit" between itself and its new acquisition, which in addition to RPO also provides talent management services.

The hoped-for synergy would include positioning Consort's RPO service offering within Rethink's existing client base, while potentially taking its own IT contract managed service provider (MSP) offering to existing Consort clients.

"What Consort brings is an interesting alternative approach on RPO because it's a fixed-price model, not a transactional-based approach," Wright said. "We think that is going to be a bit of a game changer. It's very attractive from a client perspective to engage with a strategic partner when you know up front what your cost is going to be."

Consort employees that are not in on-site roles with clients will move into Rethink's London office. Wright said that Consort will retain its existing brand name "for the foreseeable future". However, he added: "Obviously, from a Rethink Group perspective, we are going to take this opportunity to think about future branding positioning of our talent management offerings."

BGF, or British Growth Fund, facilitated the purchase with a £2.5m investment. BGF was established in 2011 to help Britain's small and medium-sized enterprises and is backed by Barclays, HSBC, Lloyds, Royal Bank of Scotland and Standard Chartered. It invests for a minority equity stake and a board seat.

Osborne Clark provided legal support on the sale.

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