The India Human Capital Management (HCM) market in SMB is estimated to grow at a Compound Annual Growth Rate (CAGR) of 12.5% during the forecast period.
MarketsandMarkets forecasts the India HCM market in SMB (Small and Medium-Sized Business) sector size to grow from USD 133 million in 2018 to USD 214 million by 2023, at a CAGR of 12.5% during the forecast period. The major growth factors expected to drive the growth of the India HCM market include reduce business costs in all departments, simplified core HR operations, recruitment requirements for SMEs and User interface and advanced security features. High attrition rates in Indian SMB sector, and security concern over cloud-based deployment may restraint the growth of the market.

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Mumbai to become equivalent to Bengaluru by 2022
Mumbai will gain market share and will become equivalent to Bengaluru by 2022, due to economic and political support by govt. in Mumbai region as State and Central government will work in sync which would offer more opportunities for adoption of HCM solutions. Additionally, Various HCM providers such as Spine software, gerytHR, Darwinbox are also focusing on the region. These development are expected to provide more opportunities for Mumbai to become equivalent to Bengaluru by 2022

Manufacturing to have second largest market size during the forecast period
Manufacturing is expected to be the second largest adopter of HCM software, there are various factors that are contributing to growth of HCM solutions in manufacturing sector, including need to hire and handle people, automate various processes, to generate reports and to understand workforce metrics. Apart from that government initiatives such as make in India and increasing developments in manufacturing sector would further boost the adoption of HCM in manufacturing sector.

In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, innovation and technology directors, and executives from various key organizations operating in the India HCM market.

  • ByVertical : IT and ITes : 30%, Manufacturing : 22%, Healthcare and Life Sciences : 19% , BFSI : 12%, Others* : 17%
  • By Region: Bangalore: 21%, Mumbai: 15%, Pune:14%, NCR:13%, Kolkata:12%, Chennai: 10%, and Others: 15%

*Others inlcudes Legal, HR, Logistic, Transport, Utility and Energy

The report includes the study of the key players offering HCM solutions, these include Keka (Hyderabad), Darwinbox (Hyderabad), greytHR (Bengaluru), ZingHR (Mumbai), People Works (Bengaluru), Zoho (Chennai) are the key players operating in the market. It also includes an in-depth competitive analysis of the key HCM players, and vendor comparison analysis

Research coverage

  • The report segments the India HCM market into verticals and cities. Verticals covered under the study inlcude IT & ITES, manufacturing, professional services, retail & wholesale, automobile, healthcare & life science, textile, and hospitality) and Cities covered include Bengaluru, Mumbai, NCR, Hyderabad, Chennai, Pune, Ahmedabad, Kolkata And Rest Of India


The report would help the market leaders and new entrants in the India HCM market in the following ways:

  • It helps in understanding the overall growth of the market. It also provides information about key market drivers, restraints, challenges, and opportunities.
  • It helps stakeholders in understanding their competitors better and gaining more insights to strengthen their positions in the market. The study also presents the positioning of the key players based on their product offerings and business strategies.
  • The report also covers opportunities in India HCM market in SMB sector.