GCC HR Tech Market Valuation Set to Skyrocket to Reach USD 5,483.5 Million By 2032 | Astute Analytica

GCC's HR tech market is thriving, fueled by economic diversification, a young workforce, and the need for efficiency. Despite challenges in implementation and security, the market's potential for growth and innovation positions the region as a global HR tech leader.


New Delhi, June 18, 2024 (GLOBE NEWSWIRE) -- The GCC HR tech market is projected to hit the market valuation of US$ 5,483.5 million by 2032 from market size of US$ 2,557.3 million in 2023 at a healthy CAGR of 9.05% during the forecast period 2024–2032.

The Gulf Cooperation Council (GCC) countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, are increasingly adopting HR tech solutions to streamline their human resources processes and improve overall efficiency. This shift towards digitalization is driven by several factors, including the need to attract and retain top talent, enhance employee engagement, and optimize HR operations. One of the primary reasons for the adoption of HR tech solutions in the GCC is the region's focus on diversifying its economy and reducing its dependence on oil revenues. According to a report by Astute Analytica, 83% of CEOs in the Middle East believe that digital transformation is a strategic priority for their organizations. By embracing HR tech, GCC countries aim to create a more competitive and innovative business environment that can attract foreign investment and support economic growth.

Get a Free Sample Copy: https://www.astuteanalytica.com/request-sample/gcc-hr-tech-market

The COVID-19 pandemic has also accelerated the adoption of digital technologies across various sectors, including HR in the GCC HR tech market. A survey by Mercer revealed that 70% of companies in the Middle East and North Africa (MENA) region have implemented or are planning to implement remote working policies (Mercer, 2021). HR tech solutions, such as virtual onboarding, e-learning platforms, and performance management tools, have become essential for managing a remote workforce effectively. The GCC's young and tech-savvy population is another factor driving the adoption of HR tech solutions. According to the World Bank, 60% of the population in the MENA region is under the age of 30 (World Bank, 2021). This demographic shift has led to a growing demand for digital HR services that can cater to the preferences and expectations of a younger workforce. A study by Bayt.com found that 89% of job seekers in the MENA region use online job sites to search for employment opportunities.

HR tech solutions offer GCC countries an opportunity to address the challenges associated with a rapidly growing workforce in the HR tech market. The International Labour Organization estimates that the GCC region will need to create 5.5 million new jobs by 2030 to accommodate its expanding population. HR tech solutions can help GCC countries manage this growth by automating repetitive tasks, improving recruitment processes, and providing data-driven insights for strategic decision-making.

Key Findings in GCC HR Tech Market

Market Forecast (2032)US$ 5,483.5 Million
CAGR9.05%
By ApplicationTalent Management (56.17%)
By TypeOutsourced (75.52%)
By End Use IndustryIT (22.41%)
By Company Size Over 5000 Employees (45.1%)
Top Trends
  • Increasing adoption of AI and data analytics for informed decision-making and personalized employee experiences
  • Growing focus on digital transformation and leveraging HR tech for remote work management
  • Emphasis on using HR tech to attract, retain, and develop top talent in a competitive market
Top Drivers
  • Need to diversify the economy and reduce dependence on oil revenues by creating a competitive and innovative business environment
  • Demographic shift towards a young, tech-savvy population demanding digital HR services
  • Necessity to manage a rapidly growing workforce and automate repetitive tasks for improved efficiency
Top Challenges
  • Ensuring seamless transitions and effective implementation of HR tech solutions across organizations
  • Addressing cybersecurity risks and data privacy concerns, especially when collaborating with external partners
  • Keeping pace with the rapid evolution of technologies and maintaining an agile approach to refining and rolling out HR tech tools

Harnessing HR Tech for Navigating the Evolving Talent Management Landscape in the GCC, Contributes Over 56.17% Market Revenue

In the rapidly evolving business landscape of 2024, the demand for HR tech market in talent management across the GCC region is experiencing unprecedented growth. This growth is fueled by the increasing need for digital solutions in HR management, as organizations navigate the challenges and opportunities presented by the changing workforce dynamics. The COVID-19 pandemic has accelerated the shift towards flexible work models, with over 40% of employees expressing a preference for more flexible work options post-pandemic. Offering flexibility has become a key driver for talent retention, productivity, and employee well-being, prompting businesses to explore distributed, remote, and hybrid work models. Simultaneously, organizations are placing a greater emphasis on enhancing the employee experience and promoting well-being in the workplace, with 73% of HR leaders considering their wellness programs as very important or extremely important to talent acquisition. HR technologies play a crucial role in supporting these initiatives, enabling HR managers to leverage new tools to foster supportive workplaces and personalized development opportunities.

As companies invest in talent acquisition and retention strategies to attract and retain the best talent in a competitive market, HR tech market solutions have become essential for streamlining these processes. In 2023, companies worldwide planned on investing in talent retention strategies and improving candidate experience, with updating processes for candidate screening and job postings being key focus areas. Internal mobility and skill development are also emerging as critical talent strategies, with technology playing a vital role in supporting access to internal talent and enabling managers to prioritize upskilling and reskilling their workforce. The tech workforce itself is expected to grow twice in the GCC countries as fast as the overall U.S. workforce in the next ten years, with a replacement rate averaging about 6% annually, or approximately 350,000 workers each year. Early Q1 2024 data indicates an uptick in employer job postings as companies re-evaluate their talent needs, further emphasizing the importance of HR tech in navigating the evolving talent landscape.

Outsourced HR Tech is Revolutionizing the GCC Workforce and to Control Over 75.52% Market Share

The Gulf Cooperation Council (GCC) countries are witnessing a transformative shift in their HR landscape, with outsourced HR tech market is making significant strides. As nearly half of the companies in the UAE grapple with talent shortage problems, which are expected to worsen, GCC nations are turning to digital solutions to address their HR challenges. The UAE, in particular, faces high stress levels, irregular working environments, and inefficient IT technologies, with employees looking to HR for support in promoting wellness. Recognizing the need for change, GCC countries are heavily investing in digital technologies across both government and private sectors. This strategic move aims to diversify their economies beyond the traditional oil and gas industries. A staggering 77% of CIOs surveyed in the UAE claim they are actively investing in cloud technology, highlighting the region's commitment to digital transformation.

To tackle the talent crunch, a growing number of GCC companies in the HR tech market are embracing HR outsourcing. By partnering with external providers, these organizations gain access to a diverse pool of HR talent with extensive knowledge and expertise. Outsourcing to countries like India not only provides access to skilled and cost-effective talent but also helps navigate complex local labor laws. This approach has proven to be a game-changer for businesses looking to streamline their HR processes and attract top talent. The COVID-19 pandemic has further accelerated the adoption of digital solutions in the GCC. The crisis significantly impacted workers without social security, with 45% of businesses started by young entrepreneurs in Kuwait forced to shut down. In response, HR professionals are actively participating in conferences on generative AI use (60%) and collaborating with IT departments to explore innovative use cases (58%).

Looking ahead, large enterprises in the GCC are expected to prioritize HR tech market investments in AI, cloud, and machine learning to simplify processes and enhance efficiency. As the region continues to embrace outsourced HR technology, it is poised to revolutionize its workforce and build a resilient, future-ready economy.

Inquire Before Buying This Research Report: https://www.astuteanalytica.com/inquire-before-purchase/gcc-hr-tech-market

Unleashing the Digital Workforce: How IT Companies Dominate HR Tech in the GCC with Over 22.41% Market Share

The IT sector in the GCC countries has emerged as the largest consumer of HR tech solutions, driven by the region's ambitious digital transformation initiatives. Countries like Saudi Arabia and the UAE have launched national visions, such as Saudi Arabia's Vision 2030 and UAE's Vision 2021, aimed at diversifying their economies and fostering growth in the IT sector. For instance, Dubai Internet City has become a hub for technological innovation, attracting numerous IT companies. This digital push necessitates advanced HR tech solutions to manage the burgeoning workforce and streamline HR processes in the HR tech market. The rapid growth of the IT sector in the GCC is further supported by significant investments in technology infrastructure, creating a favorable environment for IT outsourcing services.

The IT sector faces significant challenges in talent acquisition and retention, exacerbated by a notable shortage of skilled IT professionals in the region. Companies are increasingly relying on global recruitment and sophisticated HR policies to attract and retain talent. Advanced HR tech solutions, such as AI-powered recruitment tools and talent analytics, are crucial in addressing these challenges by enhancing the efficiency and effectiveness of HR operations. For example, AI-powered HR tech solutions like Darwinbox and PeopleStrong offer features like advanced talent analytics, candidate shortlisting, and employee engagement tools. These technologies help IT companies in the HR tech market manage their workforce more effectively, ensuring they can keep pace with rapid technological advancements and maintain a competitive edge.

Moreover, the strategic role of HR in managing organizational change is pivotal in the IT sector. The adoption of new technologies requires significant organizational change, and HR departments play a crucial role in this transformation by ensuring employees are adequately trained and engaged. HR tech solutions facilitate this process by providing tools for continuous learning, performance management, and employee engagement. This is particularly important in the IT sector, where the rapid pace of technological change demands a highly adaptable and skilled workforce. Outsourced companies in the GCC HR tech market like ADP and LinkedIn are instrumental in providing these advanced solutions, enabling IT companies in the GCC to manage their workforce effectively and maintain a competitive edge in a rapidly evolving digital landscape.

GCC HR Tech Market Key Players

  • SAP SE
  • Oracle Corporation
  • Automatic Data Corporation (ADP), Inc
  • Cornerstone OnDemand, Inc.
  • Ceridian HCM Holding Inc.
  • Infor, Inc.
  • Cegid Group
  • The Access Group

Key Segmentation:

By Application

  • Talent Management
  • Payroll Management
  • Performance Management
  • Workforce Management
  • Recruitment
  • Others

By Type

  • Inhouse
  • Outsourced

By End Use Industry

  • TTH (Travel, Transportation, and Hospitality)
  • Public Sector
  • Healthcare
  • Information Technology
  • BFSI
  • Others

By Company Size

  • Less than 1k Employees
  • 1k-5k Employees
  • Greater than 5k Employees

By Country

  • Saudi Arabia
  • UAE
  • Qatar
  • Bahrain
  • Kuwait
  • Oman

Buy Now Full Report: https://www.astuteanalytica.com/industry-report/gcc-hr-tech-market?buy_now=true&license_type=single

About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
LinkedIn Twitter YouTube

 

Contact Data