The industry of HR in India


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People Matters cover story on the HR industry in India - size, players, challenges and growth opportunities

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The industry of HR in India

  1. 1. The Industry of HR People Matters March 2011 ByEster Martinez, Gautam Ghosh, Rajlakshmi Saikia Read more at: story-the-industry-of-hr t th i d t fh (c) People Matters - All rights reserved
  2. 2. The People Matters HR Industry Matrix (c) People Matters - All rights reserved
  3. 3. The Size of the Industry and y Select Players (c) People Matters - All rights reserved
  4. 4. The Players – contd. contd. (c) People Matters - All rights reserved
  5. 5. Five Challenges g (c) People Matters - All rights reserved
  6. 6. HR ConsultingPlayers: the big four specialized HR consulting MNCs four, MNCs,SME local players and individual freelancers.Service Offerings:◦ H Human capital management; it l t◦ Health and benefits, including retiral strategy and administration;◦ P People angle of t l l f transformation, mergers and acquisitions; f ti d i iti◦ Feedback and communication (designing and implementing surveys)◦ Data services (salary, rewards benchmarking, job description)Data services currently are more than 50% of largerfirms’ revenuesfi ’Scope for future growth – integrated talent managementand leadership development (c) People Matters - All rights reserved
  7. 7. Recruiting & StaffingPlayers: search selection and placement companies job portals temporary search, companies, portals,staffing, RPOs, relocation firms, testing and assessment tools, applicant trackingtechnologies, background verification servicesSenior level (CXO level) hiring, - retained search. dominated by the multinationalcompanies which position themselves as consulting firms Hiring at this level firms.foresees a healthy and welcome trend, as the market for talent becomes globaland as many firms acquire domain focusMiddle management hiring - mostly contingent in nature - clients pay only whenthe candidates join their organization. This space is also dominated by MNCsalong with some large Indian players.Mass selection & placement services - has many small players that specialize in alocation or industry. Consolidation will increase as firms look at managing low y g gmargin business through volumes.Middle and lower hiring has the biggest growth opportunities as more organizationlook at reducing cost and ‘time-to- hire’ via RPO.Jobsites/ portals Strong competition and pricing pressures in this space as portals.differentiation is based less on product offering and more on establishing scale &brand dominance. (c) People Matters - All rights reserved
  8. 8. Learning & DevelopmentData on the size of this segment in India is notreadily availableHigh number of playersService offerings –◦ Technical◦ Functional◦ Behavioral and leadership training◦ B-Schools offering executive level training. g gTechnology enabled learning will reach largenumbers and will be easy to customize.Will witness f t growth, as companies b i t it fast th i begin tolook at training as an investment to improveproductivity. (c) People Matters - All rights reserved
  9. 9. HR TechnologyIncludes all technology service providers from end to end end-to-endHRMS products, to niche products for recruitment or payrollmanagement or e-learning, to workforce analytics tools.This industry is moving rapidly as a result of demand forintegrated support solutions by Indian firms.Indian firms (SMEs and large organizations) mirror globalorganizations in the way HR technology procurement is ledby HR and supported by the internal technology team. y pp y gyThe IT team checks and validates issues like security,performance, disaster recovery while HR assesses thefunctional capability.f i l bili (c) People Matters - All rights reserved
  10. 10. HR OutsourcingProcess-drivenProcess driven outsourcing includes complete corporatefunction outsourcing and is not restricted to HR alone.Leverage technology platforms for providing services.Function-driven outsourcing includes recruitment processoutsourcing (RPO), HR administration and compensation &benefits outsourcing where clients can leverage on the outsourcing,expertise, scale and technology of expert service providersfor execution of these tasks.Finally, people-driven outsourcing includes companies thatoffer to replace the complete HR team within the organizationand function as the internal HR team in the eyes of theemployees. These providers mostly cater to the SME sectorand their solutions are closer to providing consulting support. (c) People Matters - All rights reserved
  11. 11. Our Sincere Thanks to:EXPERTS QUOTED INTHE STORY (c) People Matters - All rights reserved
  12. 12. Krish Shankar, Dr. TV Rao Deepa MohamedDirector HR, Bharti Chairman, TVRLS Group Head HR & Airtel Training, SMC Group (c) People Matters - All rights reserved
  13. 13. Dhruv Prakash, Debu Mishra, NS Rajan,MD India, Leadership & ex-HR Consulting Partner & Asia Talent Consulting, head, Now an Pacific Head of Korn/Ferry Entrepreneur Human C it l H Capital, Ernst & Young (c) People Matters - All rights reserved
  14. 14. Balaji Ganesh, Deepak Dhawan, Aquil Busrai,CEO, Adrenalin CEO & Founder, CEO, Aquil Busrai Talentonic Consulting (c) People Matters - All rights reserved
  15. 15. E. Balaji Pankaj Bansal Pallavi JhaMD & CEO, Ma Foi CEO & Co-founder, Chairperson & MD, Randstad People Strong Walchand PeopleFirst Ltd Ltd. (c) People Matters - All rights reserved
  16. 16. Continue the ConversationWebsite: http://www.peoplematters.inSend us your y @p pTo subscribe email: varsha.k@peoplematters.inor online at theJ i th community: it (c) People Matters - All rights reserved