The global HR software market size is expected to exceed USD 10 Billion by 2022. Human Resource (HR) department coordinates various functions such as salary hikes, bonus payments benefits management, recruiting, training, performance management, and succession planning. Increasing adoption of cloud technologies such as Software as a Service (SaaS) is expected to be a key driver for the HR software industry growth. The technology offers several benefits including ubiquity, document control, and automatic updation, which may impel demand over the forecast period. The shift in workforce management from millennials to baby boomers may augment the HR software demand over the next seven years. HR software maintains data that is confidential in nature such as employee information, home address, social security number, and financials. An increasing number of cyber crimes may compromise data security, which is expected to hamper HR software market growth over the forecast period. The software’s ability to provide customized solutions considering the current workforce dynamics exhibits high-growth potential. The introduction of several new tools such as candidate searching, advertisement management, and candidate relationship management and integration of Facebook and LinkedIn is also anticipated to contribute towards future industry growth.
The industry can be broadly classified into the human resource administrator segment and talent management segment. Major HR software industry players are shifting their focus from administrator to talent management segment. The increasing trend towards category convergence, in inter and intra human resource categories may also increase demand over the foreseeable future. The industry is also characterized by a slow shift from traditional back-end administrative HR to an integrated talent management system coupled with applicant tracking and learning management systems. Rising demand for performance and succession management to identify and train future leaders is also expected to be a major driver. The availability of several on the internet software such as LinkedIn, Netsuite, and Workday is also anticipated to increase competition for incumbents. The development of smartphone applications for human resource management is also anticipated to further increase industry demand. High adoption of Bring Your Own Device (BYOD) in the HR department has opened up avenues for industry growth. Cloud proliferation is expected to open a novel market for human resource system consulting.
Understanding the technical requirements of organizations is expected to pose as challenge to HR software developers. Software customization on the basis of custom needs of diverse industrial verticals is anticipated to decrease vendor profitability over the next seven years. The human resource software industry can also be segmented on the basis of organization size into small, medium, and large size businesses. The complexity of software increases as the size of the organization increases. As the company size increases, requirements of performance measurement, time & attendance tracking, and compensation plans to customized software for managing risks and contain related costs, production, and distribution of pay statement and banking services change. North America is anticipated to be the largest HR software market for solutions due to substantial growth across the service sector. This can be further attributed to the increasing adoption of these solutions in Silicon Valley.
Asia Pacific is estimated to exhibit high growth over the foreseeable future due to heavy industrialization in the region and a rising number of start-ups concentrating on smartphone application development. The growing need for mobility in developing countries such as India & China is also anticipated to catalyze industry growth over the forecast period. Europe is also expected to witness substantial growth owing to a high number of corporate offices of several industrial verticals. Key HR software industry participants include Taleo Corporation (Oracle), SuccessFactors (SAP), ADP, Accenture Plc, Ceridian HCM Inc., Kenexa Corporation (IBM), Cognizant Technology Solutions, Halogen Software Inc., PeopleAdmin, and SumTotal Systems Inc. Prominent market players are expected to focus on mergers and acquisitions to gain substantial HR software market share. For instance, Oracle’s acquisition of Taleo Corp., integration of new value-added features with software, and cross-selling to several MNCs are the major growth strategies used by players in order to increase their global footprint.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.
"The quality of research they have done for us has been excellent..."
In contrast to its related industries like consumer electronics and semiconductors, the data center and communications infrastructure industry is expected to be more buoyant with continued strategic investments made to support the increased network traffic and data usage for remote working during the lockdown phase. From school closures necessitating students to use virtual offerings (Google Classroom ) to the governments using business analytics services (Power BI) for communicating virus updates, the demand for communication services and related infrastructure has witnessed an unprecedented rise amidst the global pandemic. Digital services including telemedicine are expected to remain popular even after the pandemic is contained, thereby ensuring strong growth in the communication infrastructure industry. The report will account for Covid19 as a key market contributor.