The Industry of HR in India
People Matters March 2011People Matters March 2011By
Ester Martinez, Gautam Ghosh, Rajlakshmi Saikia
Read more at:http://peoplematters.in/articles/cover-story/cover-story-the-industry-of-hr
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The People Matters HR Industry Matrix
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The Size of the Industry and Select Players
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The Players – contd.
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Five Challenges
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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
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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.
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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.
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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.
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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.
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closer to providing consulting support.
Our Sincere Thanks to:
Experts quoted in the story
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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.
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Dr. TV Rao,Chairman, TVRLS
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