News: HR Technology: Building the base for future growth

C-Suite

HR Technology: Building the base for future growth

HR technology will not see exponential growth in 2013, however companies will be trying to establish presence and build a base for the future
HR Technology: Building the base for future growth
 

The market is mostly made up of small and large Indian corporations, though the last 5 years has seen the introduction of many global players

 

HR technology was the late entrant in the technology space in India. While other enterprise technology platforms have seen a great deal of evolution, the HR technology space is far behind other technology sectors in terms of maturity. HR technology developed in the West in three phases or layers. The first layer comprised automation of administrative tasks, such as payroll and benefit. The next layer comprised management of the talent lifecycle within the organization, starting from recruitment to training and deployment. The highest level of technology maturity was seen in the form of integrated solutions that manage the entire human capital of the organization. Global experts, however, believe that development of the HR technology space in India has been unlike the West, and technology providers are pioneering disruptive products that could potentially affect the global HR technology industry.

The HR technology market is a highly fragmented space with a number of niche players offering off-the-shelf standardized solutions to large global players providing comprehensive human capital management solutions. Essentially, three types of players comprise the HR technology market in India― niche core HR off-the-shelf providers (including standard payroll and administration solutions), solutions that cater to optimization and efficiency of HR management (such as analytics, performance, engagement, workforce solutions) and comprehensive enterprise solutions providers. The market is mostly made up of small and large Indian corporations, though the last 5 years has seen the introduction of many global players.

A number of trends are affecting the HR technology space, including the evolution of cloud-based services, increasing penetration of mobile computing, and the changing demographic distribution of the workforce. Owing these developments organizations are gradually realizing the need for anytime information availability, new ways to manage performance and efficiency, and develop new ways to engage talent and customers.

Various sectoral opportunities will likely drive market growth in this sector. With FDI opening up, there will be more requirements for retail companies to manage talent and performance. The hospitality industry too will likely see an increased influx of talent and a greater need for technology to manage the workforce. Among the other sectors, PSUs and manufacturing organizations will be looking to optimize efficiency and optimize organizational performance.

Disruptive technologies, pioneered in India, will likely shape the global direction of the HR technology market. With the workforce becoming diverse and more distributed, the HR technology industry will likely see a surge in demand for analytics and big data. More global companies with analytics capabilities will likely seek entry into the Indian market and existing players will be looking to ramp up their product capabilities.

While the outlook for 2013 for HR technology will not be of exponential growth, the space will see companies trying to establish presence and build a base for the future.

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Topics: C-Suite, Outsourcing, Technology, #HRIndustry, #Trends

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