Industry structure of the Russian market of HRM systems

Industry heterogeneity

Though HRM systems are, as a rule, treated as the "horizontal" solutions which are not depending on the field of their application, it, of course, is not absolutely correct and the industry specifics in them are considered. Certainly, payment methods, number of additional charges, calculation methods, approaches to accounting of a worked time and results of work, number of staff, a ratio of accounting settlement transactions and operations on human resource management and a number of other parameters significantly differ in the organizations with different specialization. In particular, work with personnel in trade cardinally differs from like that, for example, in mechanical engineering, and the specifics of construction differ from both mentioned industries. The specified distinctions affect demand of the enterprises of the corresponding industry for HRM systems and, certainly, on the functional requirements imposed to them and also on the cost and project duration of implementation.

Besides, demand for solutions of the class HRM in many respects is defined also by an economic status of this or that industry which directly influences number and average cost of the implemented projects at the relevant enterprises. So, the "rich" companies can adhere to use of foreign solutions even if there is no objective need for a "heavy" system and while the companies which do not have such financial resources will prefer systems providing the maximum functionality in the selected price segment.

The mechanical engineering is in the lead

According to the research conducted by analysts of the TAdviser Center, the greatest demand for HRM solutions is observed in mechanical engineering and instrument making, including military industrial complex. Based on a research, nearly 15 % of all publichnykh1 HRM projects in Russia are the share of this industry (a total quantity of the considered projects  — 220). The enterprises of the food industry to which share about 14 % of all public HRM projects fall are in the second place among the most active consumers of HRM systems in our country. Also close top three of the company of the oil and gas industry, including extracting  — 7.3 % of all public projects.

According to the analytical report "HRM systems in Russia", only 220 projects. Quantity of accounts in a HRM system. Source: TAdviser center.

Number matters

It is remarkable that the structure of the market in piece expression is essential it is different by consideration of number of projects and quantities of jobs. If in the first case the mechanical engineering (14.6 %), then in the second  — with a big separation  — transport (38.2 %) is in the lead. However, the transport industry can be considered rather an exception  — the project of automation of the Russian Railway gives automatically over 1  million users (accounts) the implemented HRM system. Nevertheless, and on the second places there are distinctions here: so on number of projects the second place is taken by the food industry from 13.7 % (on number of jobs  — only 3 %), and by quantity of jobs the second place is taken by the oil and gas industry  — 9.6 % (the third place and 7.3 % on the number of the implemented HRM projects).

Assessment of data

The trade leading on number of implementation projects of ERP systems did not win first place in this research for two reasons. First, the integrated HRM systems are implemented only by large retail chain stores and distributors of whom it is a little. Secondly, mostly, control automation by labor resources is executed within ERP system implementation here, and about such projects (affecting functionality of HRM) the vendors and integrators executing them have no detailed information even as only the ERP system implementation fact, and structure of the implemented modules  — not always is traditionally fixed.

In the conditions of total information closeness of the market when vendors, declaring several hundred implemented HRM projects, agree to provide at best information on tens of executed projects, market research on the number of HRM projects and number of the accounts made in the implemented systems is represented only "first approximation" for the understanding of structure and trends occurring in the Russian market of HRM systems.

At the same time, even the analytics which is based on the closed data of the companies obtained on a confidential basis is based on obviously incomplete data, processing only statistically significant selection and proceeding from the assumption that the market in general behaves as well as the provided its these participants. However, it is not always possible to agree with correctness of the similar assumptions. On the contrary, it is possible to assume that the large and successful companies, first of all, get to the specified selection: with them, obviously, it is more convenient to work as it is less of them, and their indicators are larger. Thus, the situation with medium-sized enterprises should be distorted significantly, without speaking about small, and market indicators and their estimates  — to become too optimistic, in comparison with a real situation.

See Also

• HRM system