Indian organizations employ HR technology depending on what stage of technology maturity they are at. It can be divided into three segments: The first segment is automation of HR processes, the second automation and management of the talent acquisition process and the third comprises human resource management systems. In the last five to 10 years, talent acquisition technologies such as applicant tracking systems have come to comprise a sizeable share of the HR tech market in India.
A key trend seen in the HR technology market in India is that of increasing specialization. HR technology development companies are focusing more on building vertical solutions to enable fulfilment of specific human capital metrics. This is one of the key reasons why new innovations have become the order of the day and will continue to remain that way in the coming months. Most HR technology service providers are working hard to create innovative products that enable or aid achievement of specific talent goals in organizations.
For a consumer of HR technology, it means a wider range of products in the coming months. 2014-15 is likely to be much better in terms of service demand. The buyer market has matured and the increase in demand has fuelled the mushrooming of new HR technology companies in recent times. Consumers of HR technology in India are willing to experiment with new solutions. A key to HR technology implementation in the coming times is that a majority of the demand will be KRA-driven. Buyers of HR technology will also look to implement solutions, which enable them to access information from other HR systems seamlessly and in real-time.
Cloud technology will continue to bring forth several disruptive changes in the market. The inherent benefit of cloud is the reduction of upfront investments. Many organizations may defer their investment decisions based on developments in the cloud space. Cloud, therefore, continues to act both as an opportunity and a threat to the HR technology market in India.
In summary, the Indian HR technology market will see several trends in the coming times. With the increasing maturity of the consumer market, organizations will be asking the right questions. Conversations will not just revolve on cost, but will move toward quality. Companies will look to implement solutions that enable them to arrive at a scientific basis to making decisions. Innovation, therefore, will hold the key for survival and sustenance in the market.
As told to People Matters