FREMONT, CA: Industries are highly reliant on human resource (HR) technology solutions for efficient optimisation of the workforce and operations, instigating the need for automation. An established hybrid working model across multiple companies, along with the automation procedure, is critical in accelerating the industry's market growth, from staffing and onboarding to payroll solutions.
According to various researchers, the Asia-Pacific (APAC) region has significantly emerged as a critical hub in the global human resources technology market. It is anticipated to reach nearly 76.5 billion USD in future years with a compound annual growth rate (CAGR) of 12 per cent. IT and telecoms have recently captured significant shares of the global HR technology market, accounting for nearly 25 per cent of total revenue. Furthermore, healthcare maintains a CAGR of 12.9 per cent due to rising demands in healthcare technology, which is crucially guided by HR tech firms.
Businesses, in the post-pandemic scenario, are highly focused on emerging technology like communications and collaboration platforms, engagement systems, help desks, and portals for the efficient performance of contactless operations with increased safety and security. Moreover, accelerated economic challenges and inflation conditions have reduced the spending of organisations on traditional HR technologies, where innovative human resource solutions emerge as a reliable option.
Talent management holds a crucial role in HR solutions, as it aids in recruiting potential employees and implementing effective retention practices. Hence, it accounts for nearly 25 per cent of the global HR market and is anticipated to remain dominant in the human resource space in future periods with an expected CAGR of 12.3 per cent.
Similarly, collaborations in the APAC HR tech market are likely expanding and are all set to integrate varied innovative technologies, driving critical industry growth. As a result, human resource processes are highly evolving on a wide scale, with an induced capability to improve customer experience, operational efficiency, and cost-effectiveness.
Technology frontiers in recent times have introduced seamless technologies like AI smart interviews, enabling consumers to access unique, chat-based AI interview tools in the marketplace. Similarly, in light of the recession's challenges, customer convenience and retention have emerged as serious concerns in recent times. Certain other industry leaders are developing tools for businesses to facilitate an enhanced workplace with deeper integrations between production systems and co-created systems for an intensified employee experience. Thus, APAC, with its robust advancements in technology and connectivity, is emerging as the hotspot for HR tech innovations.
