Gurgaon, 3rd July 2025 : Capterra India announced its 2025 HR Software Trends Survey, shedding light on the
transformative shifts within India's human resources landscape. The
comprehensive survey, which includes insights from 294 Indian HR professionals,
highlights how organisations are leveraging technology to navigate rising
costs, widening skills gaps, and the pervasive influence of Artificial Intelligence
(AI).
The survey identifies
four critical trends shaping HR in India:
1. Upskilling is
Now a Strategic Imperative
The urgent need for
training and upskilling current employees stands out as a top operational
challenge, cited by 49% of Indian HR leaders for the next 12 months. 55%
indicate that training new users on HR software is their primary
software-related challenge. With 72% of Indian organisations already utilising
AI features in their HR software (compared to a global average of 55%), the demand
for AI-specific skills is rapidly increasing.
2. AI Success in HR
Depends on Risk-Ready Implementation
Over half of Indian HR
leaders (56%) cite effective HR software implementation as a challenge, and 54%
are concerned with assessing AI's value and risks. Security is a critical
consideration for 67% of respondents when researching HR software, with 58%
reporting that security concerns drove HR purchases last year. Data quality,
understanding AI's decision-making processes, and addressing privacy issues are
key concerns.
3. AI-Enabled HR
Tools Drive Engagement and Retention
Improving employee
engagement (48%) and retaining employees (34%) are significant HR challenges
for Indian firms. The survey reveals a significant positive correlation: 57% of
HR software users with AI features report increased employee satisfaction or
engagement, compared to 49% of companies without AI features. Similarly, 55% of
AI feature users report increased employee retention, versus 38% for non-AI
users.
4. AI Powers Scalable,
Efficient Hiring
Attracting,
evaluating, and hiring skilled professionals remains a top HR challenge for 46%
of Indian HR leaders, especially as 90% expect their workforce to grow in the
next 12 months. AI-driven recruiting is instrumental in addressing this by
automating routine tasks and freeing recruiters to build stronger candidate
relationships. The survey found that companies using AI features in their HR
software reported a 57% improvement in recruitment outcomes, compared to 44%
for companies not using AI features. Similarly, AI adoption demonstrably
enhances the employee and candidate experience, with 50% of AI-enabled
organisations seeing improvements versus 41% of their non-AI counterparts. Even
in performance management, AI offers a noticeable edge, with 33% of companies
using AI features reporting improvements compared to 29% of those without.
Commenting on the
survey, Andrew Blair, analyst of the study, said:
“India is leading
the way in HR AI adoption compared to other countries in Capterra’s global
survey. As 90% of Indian companies anticipate workforce growth, scalable AI
solutions are becoming essential—not just for efficiency, but for enabling HR
teams to meet rising talent demands with agility.”
Moreover, details
concerning Human Resource Management Software are available within our
catalogue.
For further
information, please visit capterra.in
About Capterra
Capterra is the #1 B2B
marketplace for organisations to find the right software. Our platform connects
buyers to over 2 million verified user reviews about products spanning 1,000
categories and offers actionable, objective insights and recommendations to
help them find the best product for their specific business needs.