Market Trends of Asia-Pacific Human Capital Management Software Industry
IT and Telecommunication Sector to be the Largest End-user Industry
- The human capital management software demand in the IT & telecom sector is primarily driven by the growing digital transformation in APAC IT & telecom sector companies, rising demand for top-skilled talent, and streamlining core HR functions in the IT & telecom sector.
- Moreover, APAC’s IT and telecom industries are highly dynamic and competitive, requiring skilled talent to drive innovation, develop new technologies, and support digital transformation initiatives. HCM plays a crucial role in the IT & telecom sector in attracting, retaining, and developing top talent to meet the evolving needs of these industries.
- The IT and telecom sector in the APAC region is at the forefront of technological innovation, with advancements such as cloud computing, artificial intelligence, and 5G driving growth and transformation. HCM solutions enable organizations to adapt to these technological changes by upskilling employees, fostering innovation, and aligning talent strategies with business objectives.
- In addition, the stringent privacy regulations and compliances in APAC countries’ IT & telecom sectors are further driving the demand for HCM software. The adoption of human capital management software in IT & telecom institutions helps ensure compliance with employment laws, regulations, and ethical standards.
- Furthermore, the demand for human capital management software is analyzed to grow in India’s IT and telecom sectors over the forecast period. For instance, Invest India reports that as of September 2023, the telecommunication industry in India had emerged as the most robust globally, with a subscriber base of 1.17 billion. This remarkable figure includes both wireless and wireline subscribers. Moreover, the adoption of Industry 4.0, 5G networks, and data analytics drive India’s IT industry’s growth. Such developments in the country’s IT and telecom sectors are analyzed to drive the demand for HCM software over the forecast period.
- Overall, the demand for human capital management software in the IT & telecom sector is analyzed to witness remarkable growth in the coming years as businesses in the region adapt their workforce for a 5G and digital future. According to OpenSignal, as of 2023, India observed the most significant improvement in download speed from 4G to 5G out of the countries of the Asia-Pacific region, with 5G downloads being 19 times faster.
- In addition, as IT & telecom businesses in the region emphasize the latest technological advancements, industry best practices, and regulatory updates, the demand for human capital management software in the IT & telecom sector is analyzed to sustain over the forecast period.
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India Holds Significant Market Share
- •The growing Indian economy, service-based workforce, and industrialization are the key factors driving the demand for human capital management (HCM) software in the country. The country has been experiencing robust economic growth, making it one of the fastest-growing major economies globally. This growth has led to increased business activity, expansion of companies, and rising employment opportunities across various sectors.
- As organizations nationwide scale up their operations, they require efficient systems to manage their workforce effectively. HCM software provides the tools and capabilities to streamline HR processes, automate administrative tasks, and optimize workforce management, thereby supporting the growth objectives of businesses.
- India has a significant proportion of its workforce in the services sector, including IT, healthcare, finance, consulting, and hospitality. In addition, the country is home to some of the largest IT service companies, such as Infosys, TCS, etc., which significantly rely on skilled knowledge workers who are critical to driving productivity and delivering high-quality services. Such developments have further prompted the demand for HCM software for workforce management and e-recruiting applications. HCM software offers features designed to address the specific requirements of service-oriented organizations, including talent management, learning and development, and customer relationship management.
- Moreover, trends such as the growing adoption of mobile HCM applications are analyzed to drive the growth of the HCM market in India over the forecast period. Local market vendors are indulging in innovation and offering mobile-based HCM platforms to address the growing need for mobile-based HCM platforms in the Indian market.
- For instance, India-based FactoHR on its HCM platform showcases AI-based features, including factoBot, a chatbot for Attendance through Face Verification, 24/7 employee assistance, etc. factoBot, also available on mobile, allows workers to access their information and perform various tasks like checking payslips, viewing leave balances, and correcting attendance conveniently and interactively.
- Moreover, the SMEs in the country have been increasingly adopting advanced technologies and digital solutions in HR departments and other departments to enhance their competitiveness. Such developments will likely create growth opportunities for HCM market vendors to target SMEs in India. For instance, according to the Federation of Indian Chambers of Commerce & Industry (FICCI) survey released in October 2023, 60% of SMEs use digital tools for human resources, 51% for sales and marketing, and 48% for finance.
- The organization is upscaling itself by deploying cloud technologies in HRM analytics, allowing the firms to develop HR insights on employee performance, engagement, and workforce planning. This analytics help identify gaps in the performance of employees and allow employees to make informed decisions and optimize their HR strategies. For instance, as per IBEF data, investment in public cloud spending in India is expected to increase by USD 18.5 billion in the next two years.
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