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In the 19th century, the term “human resource” was coined in Europe. It was based on a concept developed during the industrial revolution by Charles Babbage (1791–1871) and Robert Owen (1771–1858). They realized that people are essential for the success of the organization. They also demonstrated how a worker’s happiness leads to superior output. and the lack of competent human resources will prevent the company from surviving.


One of the most crucial departments in an organization is HR or human resources. The workforce or employees of an organization are referred to as human resources. A human resource manager’s crucial responsibility is to manage human resources. It can be roughly described by first ATTRACTING, which includes hiring, choosing candidates, and onboarding. Second, developing, which includes instruction and growth Third, UTILIZING means putting the appropriate person in the appropriate place at the appropriate moment. The fourth and last step is RETAINING, or making the staff feel happy. A company’s human resources division is in charge of putting together a team of motivated workers. Perfect hiring, training, performance evaluation, keeping a healthy culture, and fostering strong employer-employee relationships are just a few of the numerous advantages HR management can provide to a business.


HR’s duties and responsibilities in the corporate world include hiring, training, managing, and creating corporate policies. The human resources department of a business focuses on its people, who are its most valuable asset, and oversees and manages the employee life cycle.

The HR team makes sure that the workers are happy, well-trained, sufficiently motivated, and have access to all the tools they need to do their jobs. They offer the business’s operations structure and encourage productivity for the success of the company.


Well, we have discussed a lot of responsibilities of an HR but this is not the end. Many companies and individuals think that an HR is just one who has to do recruitment and just increase the expenditure of the firm. These firms never tend to grow as they don’t have efficient employees. An HR manager has much more responsibilities than this like processing the payroll, developing policies for the workshop, providing training and development to the new employees, and processing performance reviews and promotion of the employees.

I hope what HR is clear to you.


Well yes, before understanding the evolution of HR consultancies, it was important for you to know what is an HR. now let us understand in depth what are HR consultants.


To help firms maximize the effectiveness of their HR operations and effectively implement new policies and processes, a third party offers specialized advice and services. They are frequently regarded by businesses for their capacity to deliver an unbiased perspective from the outside. A strategy meant to solve the deficiency and spur organizational change is commonly assessed, audited, proposed, and implemented by HR consultancies when they are hired to address a specific issue or deficit. While there are small and medium-sized enterprises operating, the industry is dominated by large international corporations.


Human resource (HR) consulting includes advising and implementation tasks linked to the management of an organization’s human capital and the HR function. It is also known as human capital advisory or HRM consulting. The spectrum of services includes everything from broad work on the human capital strategy to the creation and implementation of a framework for compensation and benefits to the transformation of the HR department.

Human Capital Strategy, Compensation & Benefits, Organizational Change, HR Function, Talent Acquisition, HR Analytics, Learning & Development, and HR Technology are the eight key disciplines that make up the market for human resource consulting services. Creating a corporate culture, designing an organizational structure, establishing a people strategy that supports the company’s key pillars, and designing HR-related strategies in the areas of diversity, recruitment, and talent management are just a few examples of the strategic work that is included in the human capital strategy. The segment called Compensation & Benefits, or Total Rewards, examines all facets of employee pay and benefits, from basic and variable pay to bonus plans and other supplemental benefits, throughout the entire organization, from board members to workers on the shop floor. Pension and retirement consulting, as well as advising services related to health and welfare, are also included in this field.


Now I can feel that you are clear with all our basic terminologies now we should move to our major topic which is the evolution of Indian HR consultancy firms.


Between 1960 and 1970, HR services first appeared in India. The needs of the industrialised sector were being met by the HR industry prior to 1991. However, following liberalisation, there was a fast flood of foreign businesses into the Indian economy because of the vast untapped market’s potential. In the ensuing years, India’s employment consultancy firms saw a sharp increase in demand for labour, which ultimately fueled the growth of the business as a whole. To reap the benefits of the untapped potential, a sizable number of job consultants in India arose.

After 1991, India’s service industry gained prominence and has steadily grown to represent the largest share of the country’s GDP. The industry as a whole has steadily evolved both in the international market as well as the India-to-India market, which is primarily driven by IT/ITeS services. However, the brick-and-mortar-based and conventionally delivered HR services sector has lagged behind other highly developed service sectors and the worldwide market. The HR sector has undergone some significant evolutionary changes in recent years, largely due to technological advancements and the expansion of domestic multinational corporations. The industry is believed to be worth about Rs. 30,000 crores, despite there being significant disagreement over the precise size of the sector (particularly because of disagreements concerning temp staffing and education). Out of this, the recruitment sector makes up the bulk of the industry (more than 70%). L&D, outsourcing, technology, consulting, and advisory services are a few more services with significant market shares.

Indian IT firms established themselves and provided outsourced services to global juggernauts during the boom years. This is a significant driver of the expansion of Indian IT consulting firms. By supplying the necessary personnel, the IT industry established milestones and grew to be the largest contributor to the national gross domestic product.

Well, even today I won’t say HR consultancy is rightfully valued in accordance to its values. Today also students making their carrier in HR are not happy with the opportunities provided to them by Indian companies. HR is much more valued in foreign countries because it is where people understand the need for HR as a department. But yes, it has started making a place in people’s minds today. It is due to advanced technology and the development of IT sector in the country that the human resources sector has set off on a course toward unheard-of expansion. Today people are having smartphones and the internet, which is helping the human resource sector to grow and come into the eyes of people. They are making full use of digital platforms to market themselves. Constantly doing SEO, social media marketing etc leaving no stone unturned. Compared to other established markets, Indian firms have successfully applied technology to produce highly enhanced service functions. It is likely that the HR service sector in India would skip the traditional maturity path and evolve in an unusual way due to the maturity of the Indian technology market. The shifting demographic makeup of the workforce is another significant factor that will have an impact on the sector globally, according to China Gorman, CEO of CMG Group. The makeup of the workforce has drastically changed, and in a few years, digital natives will make up the majority. This suggests that in the years to come, innovation will have a substantial impact on the sector.

The recent wave of significant acquisitions is altering the market for HR services and will have an impact on how investors see this sector. Venture capital investments will increasingly centre on emerging businesses and new technology in human capital management. Technology-driven niche services are entering this market and drawing capital from the West. These services are more plug-and-play answers to particular organisational needs. One illustration is background and reference checking services that make use of social media to get in touch with a candidate’s previous employer or coworker to confirm the veracity of statements made in a résumé or during an interview. Performance management is seeing the emergence of numerous solutions. There are a growing number of specialised solutions that combine social media with business software to provide ongoing feedback on important KPIs and link personal and organisational objectives. Similar patterns, according to market analysts, are expected to manifest in India in the upcoming months.

“Unprecedented transformation is currently undergoing in the economic, social, and cultural environment of India. According to Amit Zutshi, Partner in Ernst & Young’s Transaction Advisory Services practise, “the opportunity for the HR solutions business is being driven in a level that has never been seen before by the need for answers to difficult problems of growth, innovation, and professionalisation. According to the survey, temporary employment holds a 73% market share while permanent staffing holds 13% of the market. Professional staffing is likely to account for Rs 5,300 crore and general staffing for Rs 11,900 crore of the estimated Rs 17,200 crore temporary recruiting market. Professional staffing companies have margins of up to 35% to 35%. Global spending on temporary labour is over $140 billion, while in India, 2.5% to 3% of the workforce is projected to be on contracts in the near future as more corporations lease out job requirements.

There are several opportunities for the sector and the outlook for the coming months will continue to remain positive. In line with the global outlook for the industry, consolidation is expected across most of the segments. However, consolidation is expected to be more prominent in some of the segments, including technology, outsourcing, and recruitment. The coming few months will see more industry associations being formed, owing to the need to build a unified voice and share best practices. The Indian Staffing Federation (ISF) which came into existence in 2011 is one such example. Industry consortiums, such as CII will likely play a crucial role in this.

The demand-side difficulties and mounting strain on India’s HR departments will force the development of new services. New services like employer brand consultancy and computer-based skilling services will probably be introduced as a result of the impending skills deficit, changing workforce makeup, and expanding social media influence. Service providers will probably launch fresh, ground-breaking products in the people and performance management, engagement, and retention markets as demand grow. The majority of experts concur that innovation will be the main driver of the industry’s growth.

The focus of value discussions will shift the need for HR services away from sheer cost savings. As witnessed globally, larger, integrated, multi-year, multi-service deals may be seen in India in the near future. It is anticipated that more businesses will search for managed services, a category of service in which one provider oversees all aspects of a given programme. A managed recruiting service that includes vendor management, evaluations, and candidate selection would serve as an illustration. There will certainly be a lot of action in the RPO space as well. However, the industry would still be impacted by India’s underdeveloped HR department. Making a compelling business case for the value of hiring HR services to CEOs is still tough for HR practitioners. Experts think that HR service providers may do more to inform their customers. It becomes challenging for the buyer to advance up the HR service value chain in the absence of use-case scenarios and a solid business case.

The diversification of the service portfolio to include a wider range of services is the key to the HR industry’s future growth. Service providers must do a great deal to educate the public about value-based discussions that go beyond simple cost discussions. The employment of competent individuals and innovation must remain a priority for providers as an industry and a component of their long-term strategic plan.




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