The industry of HR in India

The Industry of HR in India

People Matters March 2011People Matters March 2011By

Ester Martinez, Gautam Ghosh, Rajlakshmi Saikia

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The People Matters HR Industry Matrix

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The Size of the Industry and Select Players


The Players – contd.


Five Challenges


HR Consulting

• Players: the big four specialized HR consulting MNCs SME• Players: the big four, specialized HR consulting MNCs, SME local players and individual freelancers.

• Service Offerings: g– Human capital management; – Health and benefits, including retiral strategy and administration; – People angle of transformation, mergers and acquisitions; – Feedback and communication (designing and implementing

surveys)surveys)– Data services (salary, rewards benchmarking, job description)

• Data services currently are more than 50% of larger firms’ y grevenues

• Scope for future growth – integrated talent management and leadership development


leadership development

Recruiting & Staffing

• Players: search, selection and placement companies, job portals, temporary staffing, RPOs, y , p p , j p , p y g, ,relocation firms, testing and assessment tools, applicant tracking technologies, background verification services

• Senior level (CXO level) hiring - retained. dominated by the multinational companies which position themselves as consulting firms. Hiring at this level foresees a healthy and welcome trend, as the market for talent becomes global and as many firms acquire domain focus

• Middle management hiring – contingent - clients pay only when the candidates join their organization. This space is also dominated by MNCs along with some large Indian players.

• Entry level selection & placement services - has many small players that specialize in a location or industry. Consolidation will increase as firms look at managing low margin business through volumes.

• Middle and lower hiring has the biggest growth opportunities as more organization look at reducing cost and ‘time-to- hire’ via RPO.J b it / t l St titi d i i i thi diff ti ti i• Jobsites/ portals. Strong competition and pricing pressures in this space as differentiation is based less on product offering and more on establishing scale & brand dominance.


Learning & Development

• Data on the size of this segment in India is not readilyData on the size of this segment in India is not readily available

• High number of players• Service offerings –– Technical

l– Functional– Behavioral and leadership training – B-Schools offering executive level training– B-Schools offering executive level training.

• Technology enabled learning will reach large numbers and will be easy to customize.y

• Will witness fast growth, as companies begin to look at training as an investment to improve productivity.


HR Technology

• Includes all technology service providers from end-to-end HRMS gy pproducts, to niche products for recruitment or payroll management or e-learning, to workforce analytics tools.

• This industry is moving rapidly as a result of demand for integrated support solutions by Indian firms.

• Indian firms (SMEs and large organizations) mirror global organizations in the way HR technology procurement is led by HR and supported by the internal technology team.

• The IT team checks and validates issues like security, performance, disaster recovery while HR assesses the functional capability.


HR Outsourcing

• Process-driven outsourcing includes complete corporate function g p poutsourcing and is not restricted to HR alone. Leverage technology platforms for providing services.

• Function-driven outsourcing includes recruitment process outsourcing (RPO), HR administration and compensation & benefits outsourcing, where clients can leverage on the expertise, scale and technology of expert service providers for execution of these tasks.

• Finally, people-driven outsourcing includes companies that offer to replace the complete HR team within the organization and function

th i t l HR t i th f th l Thas the internal HR team in the eyes of the employees. These providers mostly cater to the SME sector and their solutions are closer to providing consulting support.


closer to providing consulting support.

Our Sincere Thanks to:

Experts quoted in the story


Debu MishraBalaji GaneshA il i Deepa MohamedGroup Head HR & Training,

SMC Group

Debu Mishra,Former HR Consultant

Balaji Ganesh, CEO, Adrenalin

Aquil Busrai,CEO,

Aquil Busrai Consulting

i h h k

Dhruv Prakash, MD India,

Leadership & l C l i

Deepak Dhawan,d l

E. BalajiMD & CEO Krish Shankar,

Director HR, Bharti Airtel

Talent Consulting, Korn/Ferry

CEO & Founder, Talentonic MD & CEO, Ma Foi Randstad

NS Rajan, Partner & Asia Pacific

Head of Human CapitalPankaj Bansal

Pallavi JhaChairperson & MD, Walchand

P l Fi t LtdHead of Human Capital, Ernst & Young

jCEO & Co-founder,

People Strong

PeopleFirst Ltd.


(c) People Matters - All rights reserved

Dr. TV Rao,Chairman, TVRLS

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The industry of HR in India

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