Workplaces are now evolving and becoming leaner to keep up with the impact of competition and globalization. According to a report by Grand View Research Inc., 33% of millennials are now in management positions and have brought in new perspectives and initiatives to workplaces. This includes the field of HR processes, development, and management, as well. There is a greater reliance, more than ever, on technology, which has led to the growth in the field of HR technology.

HR Technology 

HR technology is a term that encompasses the hardware and software used in organizations to automate or streamline HR processes. This includes aspects such as payroll, leave & attendance, reimbursement, performance management, benefits, acquisitions, legal compliance, and administration. This field has seen rapid growth in recent times. Oracle and SAP are two major software giants that have paved the way in this field.

Today cloud-based systems have tremendously revolutionized standard HR practices and have optimized processes more effectively. The ease of purchase and access and top of the line security has reduced the burden on organizations and managers.

Areas of Application

HR technology has now found its place in various spheres of HR. Some of HR’s core processes have been automated and are managed more effectively with the help of software that reduces the load on managers. Some of these core HR services’ areas include

• Payroll and Attendance
• Workforce Management
• Human Resource Information Systems (HRIS)
• Data Analytics
• Employee Communication

HR talent acquisition and management also use HR technologies that help them in selecting the best candidates.

The HR Technology Industry

The HR technology industry is currently one of the fastest-growing industries in the world today. Its current worth stands, as per a 2019 report by Josh Bersin, at a whopping 400 billion USD. Technologies are now switching over to cloud-based systems to cut down storage costs with enhanced security.

HR software packages are now becoming more user-friendly and accessible. They are no longer tools that can be used or understood by managers alone. Everyone from top-level management to even employees at the entry-level can access and use them.

HR Outsourcing

The surge in the development of applications and software for streamlining and automating HR processes has highly benefitted HR Outsourcing Services. In a competitive market like India, the presence of these software and applications do help HR outsourcing services for small companies.

Outsourcing to an HR consulting or an HR outsourcing service in India becomes more comfortable when you understand the tasks that need to be outsourced. What makes the choice easier is knowing and understanding an organization’s needs. If managers are also aware of what software packages or applications they would like to use, it becomes easier to narrow down options to outsource. Of course, this is also dependent on the amount of investment and budget available for this exercise.

HR Outsourcing and HR Technology

Many tasks that would be time-consuming if done in-house, such as payroll outsourcing, leave and attendance management, statutory compliance services, HRMS, data analytics, and so on, can be outsourced. Many organizations have begun to look at the psychology of the candidate, assessing their behaviors and responses to situations. Hireselect and plum.io are testing platforms and tools that assess candidates’ personalities. With such innovations at hand, the hiring process could become an easier task for HR recruiters and staffing agencies.

The HR outsourcing industry in India as of 2017 was 150 billion USD and growing leaps and bounds. This is a wise time for companies to invest in outsourcing to stay ahead in the game.