Saudi Arabia HR Tech Market Set to Take the Valuation Beyond USD 2,684.21 Million By 2032 | Astute Analytica

Demand for HR tech in Saudi Arabia is on an upward trajectory, driven by the need for modernization, efficiency, and enhanced employee engagement. With substantial investments and a clear focus on leveraging technology, the Kingdom is well on its way to transforming its HR landscape, setting a benchmark for the region.

New Delhi, June 11, 2024 (GLOBE NEWSWIRE) — The Saudi Arabia HR Tech Market was valued at US$ 1,231.71 million in 2023 and is anticipated to reach US$ 2,684.21 million by 2032, at a CAGR of 9.25% during the forecast period 2024–2032.

The HR tech landscape in Saudi Arabia is witnessing a significant surge, driven by the Kingdom’s ambitious Vision 2030 initiative aimed at diversifying the economy and modernizing various sectors, including human resources. The demand for HR tech solutions is primarily fueled by the need for efficient talent management, improved employee engagement, and streamlined HR processes. According to a recent survey, 78% of Saudi companies plan to increase their investment in HR technology over the next three years. Furthermore, 65% of HR professionals in the region believe that tech adoption is crucial for achieving organizational goals. These statistics underscore the growing recognition of the value that HR tech brings to businesses in the Kingdom.

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

One of the key areas of HR tech market demand in Saudi Arabia is talent acquisition and management. With the Saudi population expected to reach 39.5 million by 2030, the labor market is expanding rapidly, necessitating sophisticated recruitment tools. Statistics reveal that 72% of Saudi companies are now using applicant tracking systems (ATS) to streamline their hiring processes. Additionally, 54% of organizations have adopted AI-powered recruitment tools to enhance candidate screening and matching. A leading example is the use of AI in Saudi Aramco, where the implementation of advanced recruitment technologies has reduced hiring time by 30% and improved candidate quality by 25%.

Employee engagement and performance management are also critical drivers of HR tech demand in the Kingdom. Studies show that 67% of Saudi companies have implemented cloud-based HR solutions to facilitate real-time feedback and performance tracking. Moreover, 58% of organizations are leveraging employee engagement platforms to boost morale and retention rates. For instance, SABIC, one of the world’s largest petrochemical manufacturers, uses a comprehensive HR tech platform to monitor employee engagement and provide personalized development plans, leading to a 20% increase in employee satisfaction.

The push for digital transformation in the public sector is another catalyst for HR tech adoption in Saudi Arabia. The government’s focus on e-government initiatives has prompted 70% of public sector entities to integrate HR tech solutions into their operations. Data indicates that 62% of these entities have reported increased efficiency and reduced administrative burdens as a result. The Ministry of Human Resources and Social Development, for example, has implemented a centralized HR management system that has streamlined payroll processing and improved compliance tracking across various departments.

Key Findings in Saudi Arabia HR Tech Market

Market Forecast (2032) US$ 2,684.21 million
CAGR 9.25%
By Application Talent Management (56.02%)
By Type Outsourced (75.9%)
By End Use Industry Information Technology (22.08%)
By Company Size  Greater than 5K Employees (44.75%)
Top Trends
  • Rise of Remote Work in Saudi Arabia
  • Increased Focus on Talent Retention
  • Integration of Advanced Technologies (AI, ML)
Top Drivers
  • Digital Transformation and Vision 2030 Goals
  • High Smartphone and Social Media Penetration
  • Government Support for Innovation and Job Creation
Top Challenges
  • Increasing Cybersecurity Threats
  • Talent Gap in Technology Skills
  • Regulatory Uncertainty for Data Protection

Most of the Enterprises are Opting HR Tech for Talent Management, Contribute Over 56% Market Revenue  

Talent management has emerged as a pivotal application in Saudi Arabia HR tech market, driven by the nation’s ambitious Vision 2030 initiative and the increasing digital transformation across various sectors. The integration of advanced HR software has streamlined recruitment processes, enhanced employee engagement, and improved overall organizational efficiency. For instance, the Saudi ICT Strategy aims to create over 25,000 jobs in the sector, significantly boosting the IT market and emerging technologies by 50%. This digital shift is reflected in the HR domain, where cloud-based systems like Epicor HCM offer integrated talent management solutions, making recruitment and employee management more efficient.

The adoption of HR tech market in Saudi Arabia is also influenced by the need to attract and retain top talent in a competitive market. The war for talent has intensified, with companies increasingly relying on customized outsourcing and advanced HR practices to secure qualified candidates. Digital tools have proven effective in enhancing productivity and job satisfaction, as seen in organizations like Marsh McLennan, which improved work satisfaction for over 20,000 employees through digital HR solutions. Furthermore, the focus on employee experience is paramount, with HR leaders emphasizing the importance of designing impactful candidate experiences and effective talent acquisition strategies. This approach not only helps in attracting talent but also in retaining it by managing every aspect of the employee lifecycle efficiently.

Moreover, the role of HR tech in talent management extends to continuous learning and development. Unlimited access to online training courses and certificate programs ensures that HR professionals and employees can future-proof their careers and stay updated with the latest industry trends. The emphasis on training is crucial, as employee development is a key HR practice in Saudi Arabia, helping organizations stay competitive in a globalized business environment. The integration of HR tech in talent management is thus a comprehensive strategy that aligns with Saudi Arabia’s broader goals of economic diversification and digital transformation, ensuring sustainable growth and a robust workforce for the future.

Outsourced HR Tech is Leading in Saudi Arabia, Projected to Continue Generating More than 75.9% Market Revenue

Outsourced HR technology is gaining significant traction in Saudi Arabia HR tech market, driven by the Kingdom’s ambitious Vision 2030 initiative, which emphasizes digital transformation across all sectors. The HR Tech Saudi Summit, a pivotal event in the region, highlights the convergence of HR and technology, showcasing the latest trends and innovations in the field. The Kingdom’s focus on digital competitiveness is evident, with Saudi Arabia leading in 5G coverage, which has reached 53% nationwide and 94% in Riyadh, facilitating seamless digital HR operations. This robust digital infrastructure supports the adoption of advanced HR technologies, enabling companies to streamline their HR processes and improve efficiency.

The growth of the outsourced HR service market in Saudi Arabia is also fueled by the increasing demand for cost-effective and compliant HR solutions. Outsourcing HR functions allows businesses to leverage the expertise of certified professionals who stay updated with the latest regulations, ensuring legal compliance and reducing operational costs. The market for outsourced HR services is projected to expand significantly, with detailed analyses indicating a rise in consumption, revenue, and market share. Additionally, the Kingdom’s ICT strategy aims to create over 25,000 jobs in the sector and increase the IT market size by 50%, further driving the demand for outsourced HR tech market.

The demographic composition of Saudi Arabia, with a youthful population eager to embrace digital solutions, acts as a catalyst for the adoption of HR technology. The HR Tech Saudi Summit underscores the importance of putting people at the heart of digital transformation, aligning with the Kingdom’s broader goals of economic diversification and modernization. The increasing participation of women in the ICT sector and the rise in ICT spending, which is expected to reach $34.5 billion by 2023, further bolster the HR tech landscape. These factors collectively position Saudi Arabia as a leader in outsourced HR technology, driving innovation and efficiency in human resource management.

Saudi Arabia’s IT Industry is The Vanguard of HR Tech Adoption, Rake in Over 22.08% Revenue

Saudi Arabia boasts the largest and fastest-growing Information and Communications Technology (ICT) market in the Middle East and North Africa region, valued at over $40.9 billion and constituting 4.1% of the country’s GDP. The Saudi Arabia ICT market is expected to reach $50.60 billion by 2024 and grow at a CAGR of 8.49% to reach $76.05 billion by 2029. This rapid growth is fueling demand for HR tech market. The Saudi government has launched ambitious initiatives to transform the nation into one of the most technologically advanced countries in the world. The Saudi Vision 2030 is driving digital innovation, change, diversity, and reinvention, while the government has also launched technology initiatives worth over $1.2 billion to establish the kingdom as a global technology hub. These digital transformation efforts are driving the adoption of cutting-edge HR tech in the IT industry.

Cloud technology is anticipated to grow strongly in Saudi Arabia’s energy and utilities segment, offering lucrative opportunities in the oil and gas sector. Major cloud providers like Amazon Web Services are investing in the region to serve the growing customer base. The shift to cloud is enabling IT companies to modernize their HR systems. Saudi Arabia has a young, rapidly growing, and technologically literate consumer population who are early adopters of new technologies. This demographic trend is reflected in the workforce of IT companies, who expect modern digital HR experiences.

To achieve its ambitious digitization goals, the Saudi government is investing heavily in upskilling initiatives. For example, the National Technology Development Programme has a budget of SAR2.5bn to make the kingdom the world’s leading technology country. IT companies in the Saudi Arabia HR tech market are leveraging HR tech to enable continuous learning and development for their employees. The combination of rapid ICT sector growth, ambitious digital initiatives, cloud adoption, a youthful workforce, and a focus on upskilling is making the information technology industry a leading consumer of HR technology solutions in Saudi Arabia. IT companies need cutting-edge HR tech to attract top talent, enable employee development, and support their overall digital transformation efforts.

Ask for Customization: https://www.astuteanalytica.com/ask-for-customization/saudi-arabia-hr-tech-software-market

Inside the HR Tech Surge Among Saudi Arabia’s Top Employers, Enterprise with More than 5K Employees are Market Leaders

In Saudi Arabia, the predominant consumers of HR technology are companies with more than 5,000 employees. As per Astute Analytica, large enterprises face significant complexities in managing a vast workforce, necessitating sophisticated HR solutions. These companies in the HR tech market deal with intricate payroll systems, diverse employee benefits, and comprehensive performance management needs. HR technology streamlines these processes, enhancing efficiency and accuracy. The sheer volume of data generated by thousands of employees requires advanced software for effective data management, analytics, and compliance with local labor laws. Consequently, investing in HR tech becomes indispensable for large organizations to maintain operational efficiency and regulatory adherence.

These large-scale companies often have the financial resources and strategic foresight to invest in cutting-edge HR technologies. HR tech solutions, while offering long-term savings and productivity benefits, can represent a significant upfront investment. Large organizations, with their substantial budgets and forward-looking strategies, are better positioned to allocate funds towards such investments compared to smaller firms. Moreover, the competitive landscape of the HR tech market in Saudi Arabia’s corporate sector drives these enterprises to adopt the latest technologies to attract and retain top talent. Advanced HR systems enable them to offer a superior employee experience, from streamlined onboarding processes to effective talent development programs, thus giving them a competitive edge.

Saudi Arabia HR Tech Market Key Players

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

Key Segmentation:

By Application

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

By Type

  • Inhouse
  • Outsourced

By End Use

  • 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

Buy Now Full Report: https://www.astuteanalytica.com/industry-report/saudi-arabia-hr-tech-software-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: 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/

Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. IndiaShorts takes no editorial responsibility for the same.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Privacy & Cookies Policy