APAC Is Igniting a New HR Tech Boom
- By DWFTrends editors
- February 07, 2023
The need for automation is rising quickly as industries worldwide turn to HR technology solutions to optimize their workforce and operations. Automation of HR processes, along with a spike in hybrid working models across multiple companies, have spurred on market growth, from staffing and onboarding to payrolls and other crucial functions.
The Asia-Pacific region is leading the surge of the global human resource (HR) technology market, with a projected compound annual growth rate (CAGR) of close to 12%, according to a report by Allied Market Research. This market is expected to reach USD76.5 billion by 2031.
IT and telecoms were responsible for the largest share of global HR technology market revenue in 2021, making up nearly one-fourth of total revenues. Healthcare is also set to have the fastest CAGR of 12.9% over the forecast period due to the rising demand for healthcare technology solutions: to simplify medical procedures, allow for remote patient monitoring, and conserve costs.
Post-COVID-19, companies are also focusing on emerging technology such as communications and collaboration platforms, engagement systems, help desks, and portals to perform contactless operations safely and securely. Furthermore, economic challenges have resulted in organizations reducing plans to spend on traditional HR technologies.
Specifically, the talent management segment is anticipated to account for a quarter of the global HR technology market and will continue its dominance until 2031. The fastest CAGR is expected to be for the workforce management segment, with a projected 12.3% over the forecast period.
Collaborations in the Asia Pacific HR tech market are also growing. These are important as integrating advanced technologies is crucial for driving growth and evolving HR processes. They can also be mutually beneficial for improving customer experience and increasing operational efficiency and cost-effectiveness.
A recent example is the integration of Sapia.ai, creator of the world's first AI Smart Interviewer, with Avature's technology ecosystem. Through this, Avature customers can now access a unique chat-based AI interview tool in the marketplace.
Microsoft recently announced an undisclosed equity stake in Singapore-headquartered HR tech unicorn Darwinbox. Both companies will develop tools to aid organizations in the future of work, with deeper integrations between their production systems and co-created solutions to enhance employees’ experiences.
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