Investors Interest In HR Tech — What It Means?

The world of HR & HR technology is going through a lot of changes and one does not see any signs of that slowing down anytime soon. A look at how this domain has unfolded in the recent past.

- Amol Pawar

It doesn’t take much for one to realize the trends here. The investor interest in HR tech companies has continued to accelerate and soar. In fact, with close to $14 billion invested in about 2000 HR tech companies globally,

this is one of the tech investment avenues that do not show signs of slowing down anytime soon. For last 3 years, the HR tech industry has consistently attracted $2 billion or more in investments, with US & Europe taking the majority share of investments.

The other trend that we are experiencing is of partnerships and consolidations, a trend that is likely to continue in the future as well. With many HR tech verticals like recruitment, performance management, and engagement being crowded with multiple players, the need for consolidation is high. The other factor driving this trend of consolidation and acquisition is the realization that one doesn’t need to be everything to everyone. Companies realize that while they can focus on their core strengths, they can look to collaborate with vendors in adjacent areas with a view to provide clients with an integrated solution while also ensuring they create entry barriers for niche players. In the recent past, although many niche players have emerged, they have had to integrate with the larger HR ecosystem to be effective.