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A sourcing firm focuses on the top of the funnel—identifying, researching, and reaching out to potential candidates (often passive talent). They build pipelines but usually don’t manage the full hiring process.

A recruiting firm, on the other hand, handles the end-to-end process—from sourcing and screening to interviews, negotiations, and closures.

In simple terms: sourcing brings in leads, recruiting drives hires.

In practice, companies that combine both functions tend to deliver better results—because understanding the role deeply while sourcing ensures higher-quality, more relevant candidates rather than just volume.

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Sonal Saxena

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2d ago

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