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GCC Human Capital Management Software Market Analysis

The GCC Human Capital Management Software Market size is estimated at USD 0.91 billion in 2024, and is expected to reach USD 1.41 billion by 2029, growing at a CAGR of 9.01% during the forecast period (2024-2029).

GCC nations include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The demand for HCM software is increasing in these countries due to several factors, including rapid economic growth, which has created job opportunities through the digitalization adopted by companies in GCC.

• GCC countries continuously work toward diversifying their revenue as they depend on oil and gas for their income. Governments in the region invest in sectors such as tourism, technology, healthcare, and finance.

• For instance, in March 2024, the Ministry of Tourism in Saudi Arabia made an official declaration regarding the initiation of a program. This program involves a substantial investment of billions of dollars, which is a crucial component of their overarching objective to establish Saudi Arabia as a dominant force in the global tourism industry. As a direct consequence of these investments, there has been a notable surge in employment opportunities, creating a heightened demand for talent acquisition and management across diverse sectors. To address this need, organizations in the GCC countries are leveraging HCM software to effectively attract, retain, and nurture proficient employees who can contribute to their ongoing diversification endeavors.

• The Gulf Cooperation Council (GCC) region boasts a sizable and varied workforce, with many employees relying on mobile devices for various work-related functions. Mobile Human Capital Management (HCM) applications empower employees to access HR-related information conveniently, submit leave requests, view pay stubs, and complete training modules directly from their smartphones or tablets, regardless of location. This flexibility and accessibility cater to the preferences of the region's workforce, which heavily prioritizes mobile-centric solutions.

• The GCC region has a large expatriate workforce, with professionals from around the world relocating to the region for employment opportunities. As organizations in the GCC seek to attract and retain top talent from diverse backgrounds, there is a growing need for HCM software solutions that facilitate talent mobility by managing global recruitment, onboarding, relocation, and career development processes.

• HCM software platforms store and process sensitive employee data, including personal information, financial details, and performance evaluations. Employees may be concerned about data privacy and security regarding the confidentiality and integrity of their personal data, especially in light of high-profile data breaches and cyberattacks targeting HR systems and databases.

• Further, market vendors in the region are expanding their risk management solutions to ensure that businesses remain at the forefront of risk management best practices. Such developments are analyzed to positively influence the growth of the eGRC market in the GCC over the forecast period.

• For instance, in March 2024, Archer Technologies LLC announced plans to leverage the AWS infrastructure region to enhance risk management solutions in Saudi Arabia with ArcherSaaS. Archer's integrated risk management platform, powered by AWS, leverages advanced quantification and Artificial Intelligence capabilities to ensure assurance and fortify enterprise resilience.

GCC Human Capital Management Software Industry Segmentation

The GCC human capital management (HCM) software market is defined based on the revenues generated through the sale of licensing and subscription of human capital management software offered by various market players to various end-user industries in the GCC.

The study includes market analysis for Enterprise Governance, Risk, and Compliance (eGRC) solutions as an individual segment. The analysis is based on market insights captured through secondary research and primaries. The market also covers the major factors impacting its growth in terms of drivers and restraints.

The GCC Human Capital Management Software Market is segmented by application (compensation management, core HR [payroll management], e-learning and e-recruiting, performance management, workforce management), by deployment (cloud-based, on-premise), by end-user industry (BFSI, IT and telecom, retail, manufacturing, healthcare, government, other end-user industries), by country (Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Qatar, Oman). The report offers market forecasts and size in value (USD) for all the above segments.