The State of Indian HR Technology: Why Are We Lagging Behind?

The way HR tech is growing in the West excites me. But I can’t say the same about the Indian HR tech ecosystem.

And I’ll tell you why here.

Let me begin with the screenshot of the email from Kate at The Devon Group, which I’m sharing below. You may think it is just another promotional email from an HR tech conference. But for me, it was a little more than that. It got me thinking about what the Indian HR Tech space is missing: speed and creativity. 

In short, innovation!

——- Email from Kate ——

Why Are We Not Talking About HR Tech “Innovation” in India?

The world is celebrating groundbreaking and cutting-edge HR tech solutions that push the boundaries of HR innovation, spanning workforce insights, compliance tools, career exploration, and automation. 

This is a testament to the level of innovation happening in HR tech globally.

This also brings me to a pertinent question: WHY DOES INDIAN HR TECHNOLOGY REMAIN LARGELY STUCK IN OPERATIONS DIGITIZATION?

The HR Technology Conference, mentioned earlier in this article, has long been an event where the most forward-thinking and impactful HR tools are unveiled. Solutions like @Beamery, @Embedded Workforce Insights and @Phenom Automation Engine exemplify how global HR tech companies are addressing the evolving needs of HR teams. These products, recognized as the best of 2024, are not just incremental improvements but substantial innovations designed to streamline processes and enhance workforce management. They reflect the kind of technological advancement HR teams worldwide have come to expect.

However, when it comes to Indian HR technology, the focus has been primarily on digitizing operations, rather than true innovation. Many companies are still developing tools that automate basic processes like payroll, attendance tracking, and employee onboarding. While these are necessary functions, they do not necessarily push the boundaries of what HR technology can achieve.

Why Indian HR Tech Is Stuck in Operations Digitization?

One of the reasons Indian HR tech lags in innovation is the overwhelming focus on addressing immediate operational challenges. For many Indian companies, especially in traditional sectors, digitizing basic HR operations is still a work in progress. The aim has been to ensure compliance, manage large workforces efficiently, and automate time-consuming tasks. While these goals are important, they often come at the expense of developing forward-thinking solutions that enhance the employee experience, improve decision-making with data, or tap into AI-powered analytics.

There is also a cultural factor at play. HR in India has traditionally been viewed as a support function rather than a strategic partner. This mindset has influenced HR tech priorities, keeping the focus on tools that assist with day-to-day operations rather than those that can drive transformation. In contrast, global players are developing tools with long-term workforce strategies in mind, aiming to foster engagement, productivity, and talent development.

As a result, Indian HR tech events often lack the same level of celebration for product innovation that we see in global counterparts. While conferences in India are robust in terms of participation and offer insightful sessions on trends, they rarely spotlight truly innovative product launches. This points to a gap in the local ecosystem – there isn’t enough incentive for Indian HR tech companies to prioritize cutting-edge solutions, nor is there enough recognition of those who do.

While Indian HR tech events feature global speakers and cutting-edge technology, they often lack a focus on the unique challenges and sector-specific needs of India’s HR ecosystem. True innovation in HR begins with a shift in philosophy—from a traditionally compliance-driven approach to one that is strategic and growth-oriented. Once this mindset is in place, it becomes essential to align policies and processes with this vision, leveraging HR tech as a powerful enabler. By implementing innovative HR technology solutions, organizations can drive meaningful transformation, supporting both their strategic objectives and employee engagement.

The Future of Indian HR Tech

So, what’s next for Indian HR technology? 

There’s a clear need for Indian HR tech companies to shift their focus toward innovation and transformation. With the rise of artificial intelligence, machine learning, and predictive analytics, Indian HR tech firms have an opportunity to develop solutions that do more than just automate, they can enable smarter, data-driven decision-making and enhance the employee experience in meaningful ways.

I will stop here with some questions for you. 

If Indian HR technology wants to compete globally, it’s time to look beyond operational efficiency and start leading with innovation.

• Which Indian HR tech company has launched an innovative product in the last 12 months? 
• Why is Indian HR tech still stuck in operations digitization?
• Why aren’t we seeing more of these innovations celebrated at Indian HR tech events?