www.peoplematters.inIt is a time of transformation for the HR industry in India. Disruptive developments, both from thedemand side as well as the supply side, are changing the shape and nature of services. Some of thedemand side factors that have (and will continue to) shape the developments of the HR industryinclude the macro-economic environment, HR’s increased need for strategic partnership with thebusiness, more influx of global players and best practices, and the increasing awareness andadoption of technology.From the supply side as well, many changes have altered the course of the HR industry in India,starting from growth of niche services, such as assessment and temporary staffing, to innovation interms of how services are packaged and delivered. The industry will continue to grow and technologywill drive the next level of evolution of HR services in India.THE TURNING POINTBy Vikram Choudhury
www.peoplematters.in“While the present scenario looks positive, futureinnovations in HR Technology will depends on theinvestments that the industry is willing to make.”Industry Speaks…“Economic development and new technological advanceshave impacted the HR services industry and at the heart of it,how employers relate to their employees and how employersrelate to candidates for an appointment.”Click for full story
www.peoplematters.inThe consumption of HR services depends on how well HR professionals, both fromthe buyer and the supply side, build a strong business case for the CEO.Click for full storyTHE OPPURTUNITIES:Broad spectrum of available servicesRicher high value-added services expected in the futureLarge opportunity in L&D technology to scale-up skilling programsTHE THREATS:Inability to drive the business caseLack of substantial successful implementation case examplesLow maturity of the market
www.peoplematters.in“The need of the hour is for service providers to offerintegrated services, such as recruiting that includesemployer branding, social media advertising, andmanagement of the recruitment process with delivery thatis focused on outcomes.”“The HR community has tolearn to talk business to theCEO”“HR departments play a role of being a contact point, achange agent, project manager and facilitator in peoplemanagement.”Click for full story
www.peoplematters.inThe recruitment market , globally and in India, is dominated by staffing thatcomprises around 75 percent of the market.THE OPPURTUNITIES:Sizeable growth opportunities in staffingSpecialized talent search in STEM, pharma, and ITRecruitment process outsourcing (RPO)Managed solutionsTHE THREATS:Longer recruiting cyclesStagnant growth outlookQuestion on ability to scaleAvailability of talent poolClick for full story
www.peoplematters.in“As companies increase theirrequirements and scope ofactivities, they will look forpartners that have the scale,structure and aggressiveoutlook.”“Recruiting industry is almostlike a barometer of the waythe economy functions. Whenthe economy is doing well,companies are willing toinvest in capital and people;they want to hire.”Click for full story
www.peoplematters.inWith the Government policy fuelling changes, the L&D industry in India has a positivegrowth outlook in the coming months.THE OPPURTUNITIES:Government and academic partnershipsAsia-pacific marketNew technology space, particularly in social media and consumer technologiesTHE THREATS:Low maturity of the buyerLonger sales cyclesLack of qualified trainersMoving buyers from commodity to valueClick for full story
www.peoplematters.in“In the management space there is high competitiongiven the number of niche players. And as you movetowards the frontline, there is less competition becausethere are very few players that can deliver large scaletraining programs.”“Today , there is a clear understandingthat leadership development is processand not an event.”“The mass approach to training has made it necessaryto adopt technology to impart learning, along withenabling consistency in training quality standards.”Click for full story
www.peoplematters.inDeeper understanding of the market and ability to offer value-added services will bethe key for outsourcing and niche players.THE OPPURTUNITIES:Players in India will continue to leverage the labor arbitrage advantageEmergence of large homegrown playersLarge opportunities in the SME sectorTHE THREATS:Sales conversations are typically difficult in less mature markets, such as IndiaTalent and skills shortageIncrease in competitionClick for full story
www.peoplematters.in“India is an unmatched ground to see the impact ofHR interventions and experiments unfold withincompressed time-frames as growth in this market isexponential and telescopic.”“Leveraging technology including social media etc. forHR products and services is certainly an area ofopportunity.”“Complete the loop of assessmentswith learning solutions and talentmanagement.”Click for full story
www.peoplematters.inEconomic conditions and cost pressures have shrunk consulting budgets inorganizations, thereby making it difficult for small players to sustain.THE OPPURTUNITIES:PSUs and homegrown companiesSMEs and Indian multinationalsConsolidation in the marketAnalytics and people-based servicesTHE THREATS:Relative low maturity compared to other marketsDearth of quality talentDemand side cost pressuresClick for full story
www.peoplematters.in“The Indian large conglomerates are doing wonderswhere there is a huge focus on leadershipdevelopment with an increased in-road ofassessments leading to successors.”“Leadership development services are seeing increasedacceptance because companies are clear that the costof replacement of talent is much higher than the cost ofretention.”“Companies have realized that theyneed more capability in internalresources on implementation.”Click for full story
www.peoplematters.inWhile the outlook for 2013 for HR technology will not be of exponential growth, thespace will see companies trying to establish presence and build a base for the future.THE OPPURTUNITIES:Sectoral opportunities in retail, hospitality, retail, and PSUsEmergence of disruptive technologies, such as gamificationLarger HR technology budgets from the demand sideCloud-based and analytics servicesTHE THREATS:Low maturity on the demand sideMarket skepticism from failed implementationsLack of use-case scenarios to drive business expansionClick for full story
www.peoplematters.in“We see a trend from services to products. When youmake this shift, you go from commodity to value. Thisis happening in every space of HR today and mostrapidly in the learning space”“There are many more players looking at this space,from the global ERP giants, that are investing isbuilding capabilities in this specialized space eitherorganically or inorganically, to the local productcompanies.”“Product players are expandingportfolios to enable companies managecoverage and outreach withemployees.”Click for full story
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