The growth rate of the GDP is usually considered the primary indicator of the health of a country’s economy, along with its forex reserves, fiscal deficit/surplus and current account deficit/surplus, tax collections and debt to GDP. Deficit is not always a negative factor, if it is reasonable and within the limits defined by international and domestic standards and practices. However, in extraordinary or abnormal situations which are beyond human control, like the Covid-19 pandemic, facts and figures should be considered practically and represented to portray a true and fair picture instead of creating a fear of uncertainties.
It is imperative to assess the size of economy in correlation to the size of tax collections and their growth from one period to another in order to come at a reasonable conclusion under normal conditions. At present, we are going through the ‘Unlock’ phase, and in such a situation, the growth in GST collections vis-à-vis the GDP is pivotal for assessing the performance of the economy. An increase or decrease in GST collections can be correlated to increases or decreases in the rate of consumer consumption, manufacturing input consumption for production output, exports and imports, investments in manufacturing and service sectors, employment, etc. Though all these factors may not register impacts according to changes in GST, the direction of its overall performance compared to these key considerations swings in a similar direction.
Currently, we need to evaluate data with care keeping in mind the factor of uncertainty and its possible influence on the future, instead of using any negative results to target the government. Many are trying their best to attack the Narendra Modi government, which has brought out the Aatmanirbhar Bharat package to handle the uncertainties during the pandemic and to ensure the smooth functioning of day-to-day economic operations of individuals and industries.
Many had raised their voices about the economy when the results of the first quarter, i.e. April to June of FY 2021-22, had registered a GDP growth rate lower by 23.9% with lower GST collections, as compared with the same period in the previous year. The difference of Rs 1,28,873 crore between the GST collections for the first quarter of the current financial year (2020-21) to the previous (2019-20) meant a growth of -41.03%.
But this decrease had come with the pandemic and the nationwide lockdown. The Modi government then announced the Aatmanirbhar Bharat package in order to boost consumption by pumping adequate liquidity into the system in different categories as per the requirements, in which Rs 3 lakh crore were allocated for MSME, directly and through NBFCs, and equity participation for around Rs 75 thousand crore, for safeguarding them so they could operate smoothly and improve its share in the GDP from the existing 30% share. Apart from this, the agriculture sector had been given utmost priority and provided with credit facilities even during the first phase of the lockdown. The union government allocated Rs 75,000 crore to procure agricultural output at MSP during this period, in addition to providing Rs 1 lakh crore towards storage infrastructure for agricultural output. Direct cash transfer of Rs 500 per month for a period of six months to 80 crore people living below the poverty line was also provided to assist their consumption needs along with food grains. Meanwhile, the PM SVANidhi scheme provided credit facility to street vendors up to Rs 10,000 with a 7% interest subsidy.
All these assistance measures given by the Union government had intended to improve month-by-month economic activities in the country during the period of the pandemic. But Congress leader Rahul Gandhi tried to politicise the (-)23.9% contraction in GDP growth as a permanent decline in the country’s economy due to the inefficiency and incompetence of the Modi government. A few Left-oriented intellectuals also joined in that chorus. However, similar conditions were seen across the globe. Advanced and developed nations were no exceptions too. On the other hand, PM Narendra Modi gave priority to providing assistance to the poor and during the lockdown and reviving commercial activities in the phased Unlock period.
Keeping in view the intensity of the Covid-19 pandemic, a few rating agencies, institutions and experts had projected the contraction in GDP around (-)10.50% to (-)12.50% in India for the current financial year, which counts tax collections, investments and employment opportunities. As against those projections, a significant surge in economic activities has been noticed in the second quarter of the current financial year, when compared to the first quarter, due to the Aatmanirbhar Bharat package. The contraction in GDP growth minimised to (-)7.5%, although it was expected to be (-)9.5% in the second quarter. It must be noted that the pandemic and lockdown had been in progress during the second quarter also. But the Narendra Modi government and the RBI have reposed the public’s confidence in a slow but steady recovery.
A significant recovery in GST collections was also registered. When compared with the first quarter’s results, there was a shortage in collections, but the Manufacturing Index or Purchasing Managers’ Index (PMI) improved during the second quarter. These have been key indicators of the performance of the economy in the present and to predict for the remaining period of the current FY.
The growth in GST collections, when compared for the months of July, August, September, October and November, was -14%, -8% , 5%, 10% and 1%, respectively. This shows the trajectory of the recovery of our economy in a “V” shape. Apart from this, PMI, which is one of the key indicators for evaluating manufacturing activity, is expected to be at 50 points. Prior to the lockdown, it was between 52 and 55 points between January and March during the current calendar year. But, after the lockdown, it declined to 27.4 in April, 30.8 in May, 47.2 in June, and 46 in July. Since then, it has improved to reach the normal as in August, it stood at 52, in September, at 56.8, in October, it was 58.9, and in November, it was 56.3. Hence, there is a clear positive uptrend in GST collections as well as PMI points from September 2020.
When manufacturing activity grows, unemployment is also minimised. Migrant labourers, who are key players in the economy, had faced serious problems due to the lockdown, which had been used for political means by the Opposition. But PM Modi gave utmost priority to safeguard their lives from the pandemic as well as allocated specific funds and resources to transport them to their homes with food and shelter, with the coordination of the state governments. Rs 50,000 crore was also allocated for the MGNREGA in addition to the budgetary allocations.
India has now registered the highest total forex reserves, at more than $575 billion and achieved the highest inflows at $13.5 billion in Foreign Portfolio Investments (PFI) among emerging economies. Foreign Direct Investments (FDI) inflows also surged at 16% from April to September 2020 and achieved $39.90 billion. Although there was a contraction of 60% in the first quarter, it improved in the second. This recovery has also been possible due to the determination and timely decisions of the Modi government.
A few are spreading propaganda against the government to create panic among the public, but even they know that the economy will recover positively after the government’s timely reaction. However, we should evaluate, analyse and report data in its true sense rather than spitting venom at anyone. Instead of settling political scores, it is more important to behave as responsible citizens. We should now look at why the RBI and CRISIL revised the projected GDP contraction from (-)9.5% to (-)7.5%. We should focus on the measures taken by the government and how it has achieved such positive results. Only then will we know that there is no doubt that our country is heading towards a $5 trillion economy in the next five years and a self-reliant Bharat under the leadership of PM Modi.
The writer holds a degree in commerce and works as an FCA.
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CLOUD-BASED TECHNOLOGY TRANSFORMING BUSINESSES
Several fintech businesses have outmanoeuvred their rivals by embracing the SaaS model.
The groundbreaking SaaS (Software-as-a-Service) idea has the potential to disrupt many industries, including banking. SaaS, being a cloud-based technology, may assist both fintech startups and banks, particularly in satisfying regulatory requirements and providing security to their consumers. Without a doubt, SaaS is gaining popularity among financial services organizations due to its promises of more business flexibility, faster deployment, and support for an open ecosystem.
Symbiotic relationship between SaaS platforms and Fintech growth
The Fintech approach, which makes use of the resourceful SaaS foundation, allows businesses to access and utilise cloud-based applications rather than purchasing or building their own software. Financial firms may reap advantages such as end-to-end cost reductions, data security, scalability, and agility from the fintech industry. PwC, a well-known rating agency, predicts that more fintech businesses will utilise SaaS to address concerns generated by the post-Covid environment.
Understanding the significance of the SaaS model is not rocket science. According to Financesonline.com, the SaaS market capitalization will reach $623 billion by 2023. The use of the SaaS model in the fintech industry may foster innovation and creativity while also improving efficiency and profitability. Fintech companies can also save huge amounts of operational capital every year because of SaaS. This is not possible with the traditional model, in which companies hire experts.
SaaS solutions are extremely scalable, allowing a financial institution to digitally alter its operations while boosting security and enhancing compliance. It is also feasible to minimise physical footprints and increase efficiency via automation. By embracing the SaaS model for online transactions, several fintech businesses have outmanoeuvred their rivals and the banking and finance industry at large. FinTech lenders, for example, might accept business loan applications online, process them in minutes, and send the money to qualified customers a day or two later.
What makes SaaS a magic sauce for Fintech growth
SaaS platforms have shown the power of open platforms in the open-platform vs. patented technology argument over the last several decades. This has given SaaS a long-term viability and scalability that was previously unheard of, particularly in the financial services sector. For a fraction of the price, fintech companies have started bringing in the bulk of the capabilities that sophisticated legacy systems had inside mega banks.
There was a chance to develop an ecosystem with the use of open application programming interfaces (APIs) to allow banks to interact with these fintech partners, who could bring in novel processes and products at a relatively low cost and with relatively low usage of resources. It is also critical to incorporate outside innovation into an internal environment dominated by legacy technologies in financial organizations. The necessity to start small, to be nimble, and to expand with the market’s and customers’ ever-changing needs is obvious.
The maturation of SaaS models has aided the rise of APIs in the financial services sector, while laws such as the Payment Services Directive (PSD2) are driving banks to establish and promote open platforms. While API-based SaaS platforms have opened up a wide market and empowered the developer community, they have also contributed to the abolition of faceless goods that dominated conventional industries. It has also aided in the extraction of enormous value from data and innovative system integrations, which is now shared across a bigger and more powerful ecosystem.
The triple-edged efficiency of SaaS
Scalability, sustainability, and convenience are the three pillars furnished by SaaS to the Fintech ecosystem. The compulsions in the financial sector are being addressed by the three pillars of a SaaS delivery model. Scalability and the need to quickly add new products to existing systems, as well as a high level of data and platform security and the ability to better control costs, are all reasons why SaaS models are the delivery method of choice for banks around the world, both big and small. It is also the best strategy for working with banks, development communities, incubator programs, and data suppliers in the ever-expanding fintech ecosystem. All of this is wrapped up in a customer experience layer that is easy to use and lets business users, with only a little technical knowledge, launch products in a way that is good for business.
This transformation of SaaS-based delivery models into revenue-generating and customer-driven ones is beneficial to all parties involved. Some issues persist, but the overall contribution of proprietary and open businesses built on the SaaS cloud to the financial services sector has been spectacular. If the total cost of ownership data for the manufacturing sector is any indication, the collaborative delivery models that have recently been brought to the market will almost certainly have an almost immediate effect on banks’ total expenses.
Rahul Meena is the founder and CEO of Treflo.
Utricularia Furcellata: Rare plant species that feeds on insects
Since our childhood, we have grown up studying the ecology of plants and memorising the process of photosynthesis, which is a process by which plants use sunlight, water, and carbon dioxide to create oxygen. But, what if someone told you that there are certain types of plant species that feed on insects, mosquito larvae, and even young tadpoles?
Although the thought of plants feeding on insects sounds bizarre, it is true. The Uttarakhand Forest department has discovered a rare carnivorous plant species named Utricularia Furcellata in western Himalayan region of India.
The rare discovery, which has been published in The Journal of Japanese Botany, was made by a team of the Research Wing of the Uttarakhand forest department, consisting of Range officer Harish Negi and Junior Research Fellow (JRF) Manoj Singh in the Mandal valley in September 2021.
“This is the first such recording/sighting of this rare carnivorous plant not only in Uttarakhand but in the entire western Himalayan region of India. In fact, after 1986, this species could not be collected from any part of India,” said Sanjiv Chaturvedi, Chief Conservator of Forest (Research).
Mostly found in freshwater and wet soil, this rare species of plant belongs to a genus, commonly known as bladderwort. It uses one of the most sophisticated and developed plant structures for trap and targets protozoa, insects, mosquito larvae and even the young tadpoles.
At this point, you might be wondering how these plants manage to do that? Well, these plants do this by simply creating a vacuum or negative pressure area to draw prey inside the trap door.
Although this discovery has extended its range of distribution westward, the rare species face the threat of extinction due to heavy biotic pressure because of being at a tourist spot.
While carnivorous plants have caught the attention of the scientific community across the world, this was the first such comprehensive study in the state of Uttarakhand in India. The discovery was a part of a project on the study of insectivorous plants in Uttarakhand approved by the Research Advisory Committee (RAC) in 2019.
So far, the researchers have found around 20 plant species belonging to the genus Drosera, Utricularia and Pinguicula. Prior to this, the researchers were in search of a rare orchid species Liparis Pygmaean, which was reported in the French Journal Richardiana in September 2020.
The discovery of Utricularia Furcellata adds to the long list of rare plant species found in Indian forests, which are rich in flora and fauna.
Globally, carnivorous plants have been receiving increasing attention due to their distinct manner of arranging food and nutrition through the intelligent trap mechanisms. These rare plant species also have potential medicinal benefits, which is yet to be explored and shared with the world at large.
OBSESSION WITH ONLINE GAMES LEADS TO LOSS OF SELF-REGULATION
Children fail to think beyond the animated world and at times, it replaces reality for them, resulting in familial disharmony.
Parenting in the current era comes with its own challenges, and the pandemic has made it even tougher. “Staying online” became a necessity for the parents due to their work commitments and for children to enable them to pursue academic activities. However, what started as a necessity for kids did not take time to turn into a habit and in extreme cases, addiction. The thin line between use and misuse became quickly blurred giving birth to a new generation of computer-savvy, socially awkward and internet-addicted kids. The effect this is having on kids has long-term implications. It is taking a toll on kids’ social, mental, and physical well-being. Recently, there was news of a child being so obsessed with video games that to get his way, he shot his mother dead.
There was another case of a child who committed suicide because his mobile phone was taken away from him. Such extreme cases are but the tip of the iceberg! Many problems are very subtle and non-quantifiable. Being glued to the screen day in and day out reduces contact with society and when such kids are faced with people, they are overwhelmed and do not know how to react and respond. When they are with their gadgets, they are in their comfort zone. Due to the new-age parenting, children are not able to cope with the stress when they are out of this zone. Besides, these games are self-absorbing and also provide a lot of gratification in the form of levels and medals, so children keep going back to those again and again. It leads to an obsession with games and self-regulation is lost. Children fail to think beyond the animated world and at times it replaces reality for them resulting in familial disharmony.
The brain is actively developing and processing new information in the first five years of life. At this age, children require a lot of stimulation. This commonly happens when they hear others speaking, listen to stories and songs, engage in free play, imaginative play and have a multitude of sensorial experiences by playing outdoors. If these precious years are spent glued to the screen, brain development is hampered, and children start displaying adverse behaviours like irritability, hyperactivity and at times autistic personality. Prolonged screen time also reduces physical activity and facilitates unhealthy eating habits resulting in health problems like overweight. Childhood obesity is a new pandemic for the present generation largely contributed to lack of physical exercise and screen addiction. Childhood obesity is a forerunner of lifestyle diseases like hypertension, diabetes, polycystic ovarian disease, and dyslipidemia. In addition, excessive screen viewing results in eyestrain and weak eyesight. It also results in multiple nutrient deficiencies most commonly hypovitaminosis D.
So, what is the solution? There is no single answer for this. There is no magic bullet or a permanent solution. Children need to know their limitations and should learn self-regulation. Screen time should be restricted to 2 hours every day. Playing video games or watching TV should not be the only source of entertainment. They should be engaged in structured and unstructured physical activity daily. They should be encouraged to have friends and interact with them in person. The best way to ensure is by setting good precedence. Parents should restrict their own screen times and should not offer children TV or video games to get their own free time. Parents and children should avoid screen at least 1 hour before bedtime and recreational use of television in the bedroom.
One should be vigilant and identify early signs of screen addiction like loss of interest in other activities, thoughts pre-occupied with virtual subjects, displaying behaviours like lying to watch the screen and familial discordant. It is definitely a difficult task in the current time and age to keep a child away from the screen and requires a lot of determination from the parents, but it is not impossible and is the need of the hour.
Dr Vaidehi Dande is a child specialist and neonatologist at Symbiosis Hospital in Dadar.
For the love of the chair
Back in 1975, the ruling Congress under Indira Gandhi had organised mass protests outside the PM’s house. The so-called “spontaneous rallies” and “people’s rallies” were against a high court ruling, which restrained the PM’s right to vote or draw a salary as a Member of Parliament. The conditional stay had allowed Indira Gandhi to retain the prime minister’s post. Indira Gandhi’s misuse of power had put her in a spot when Allahabad HC accepted a petition filed by Raj Narain, which found her guilty of corrupt practices under Section 123(7) of the Representation of People’s Act during her Lok Sabha campaign in 1971 at Rae Bareli. The mass rallies in support of Indira Gandhi were a desperate attempt to cling to the chair when the moral authority and legal tenability of the government was fast slipping away. Gandhi was in no mood to exit gracefully. To insulate herself from the court verdict, she declared an Emergency on 25 June 1975 on the grounds of internal disturbances.
A similar situation is playing out in Maharashtra as CM Uddhav Thackeray desperately clings to power. In the evening of 20th June 2022 when the political observers, media and politicians in Maharashtra were focused on the Vidhan Parishad vote counting exercise, about 30-40 MLA’s in the assembly quietly made their way out of the state. The surprising BJP victory in the fifth MLC seat proved what the LoP Devendra Fadnavis was saying all along “that inherent ideological contradictions and dissatisfaction within the ranks of MVA will fuel our victory”.
When news about the 40 MLA’s who left the state in rebellion against the MVA government in Maharashtra broke the next morning, CM Uddhav Thackeray found himself in a similar situation to Mrs Gandhi in 1975. The Uddhav Thackeray government has lost moral authority as most of his MLAs have deserted him and the government can no longer claim a majority. Realising this, the CM left the official residence Varsha in order to claim the high moral ground and bring back the MLAs. After emotional appeals failed, he tried to convince, cajole and even threaten the MLAs. He attempted a show of strength on the streets and removed the security of MLAs’ family members. After every attempt failed, he is still clinging to power and repeats what Indira Gandhi did—organising protests in solidarity with him even though he clearly knows that numbers in the Vidhan Sabha don’t favour him.
A graceful exit and the forming of a “natural alliance” with the BJP is what his rebel MLAs have demanded. A “graceful exit” for CM Thackeray is exactly what the NCP under Sharad Pawar wants to prevent, even though the NCP is under no illusion about the future of this government. The NCP is egging the Shiv Sena Chief to fight this losing battle, prolong this humiliation, conduct floor test and face more ignominy. How else can Shiv Sena be thoroughly humiliated than fighting for a lost cause? For two and a half years, the NCP worked in tandem with the MVA government in denying their share of power to Shiv Sena MLAs. Today, the NCP under Sharad Pawar is working on its design to weaken the Shiv Sena further by making them fight a losing battle despite a lack of numbers.
If Indira Gandhi’s experience is any indication, Uddhav Thackeray will face the same fate as Indira Gandhi faced in the 1977 elections immediately post-emergency. The protests on the streets notwithstanding, the Indian electorate has consistently demonstrated a preference for democratic ideals. The excesses and desperation to cling to power of the emergency era had paved way for the first non-Congress government in India. A similar trend will be visible in Maharashtra post the 2019 elections.
In 2019, Shiv Sena had fought elections in alliance with BJP under the leadership of CM Devendra Fadnavis. Uddhav Thackeray abandoned the alliance after elections and formed an unnatural alliance with the NCP-INC combine, thereby insulting the voter’s mandate. The Shiv Sena rebel camp led by Eknath Shinde today is merely calling for the undoing of this insult to the people and a return to the Hindutva fold. If CM Thackeray continues to cling to his chair, the people of Maharashtra will punish his group heavily in every upcoming election, while the “original Shiv Sena” of Eknath Shinde adhering to Balasaheb’s ideals will be rewarded by the voters. The post-emergency era brought non-Congress parties into prominence and led to the eventual decline of Congress. The Love of the chair on the part of CM Thackeray will lead to the same results. CM Thackeray can either choose to respect the mandate of the people and their elected representatives or risk losing his party altogether.
The author is BJP spokesperson, advisor to former Chief Minister of Maharashtra, Devendra Fadnavis, and executive director of Maharashtra Village Social Transformation Foundation.
ONLINE FOOD DELIVERY IS TRENDING AND CONTAGIOUS
Technology has saved consumers from driving through the busy lanes with red lights at smaller intervals and a longer wait for their turn at the restaurant.
If one is asked, “How many times did you order food online in the last six months?” The chances are that one may not even remember the exact number. However, the answer to another question, “How many restaurants have you visited to enjoy food in the last six months?” would be “yes, I can tell.” Millions of Indians have similar answers. Nonetheless, one might be mistaken if they believe that consumers order foods online only because of the Covid-19 pandemic. Most Indians had never thought that online food delivery would become so common that too, so fast. But the reality is that it is now part of urban consumers’ food habits, e.g., food purchase and consumption behaviour, in many countries, including India. It is trending and contagious. In the year 2021, more than 282 million Indians ordered food online, and the number is likely to increase to 493 million by the end of 2025.
Was it all because of Covid-19 and subsequent lockdowns? No, the Covid-19 pandemic has only accelerated the pace of the e-commerce business, including the online food business. The two most important factors that led to the food delivery business transformation are a revolution in internet and digital technologies and fast-changing consumers’ lifestyles and preferences.
Technology has enabled consumers to access their favourite foods from their preferred outlets at their fingertips. Food reaches consumers in the shortest possible time at the place and the time decided by the consumer and all of this without spending much. Technology has saved consumers from driving through the busy lanes with red lights at smaller intervals and a longer wait for their turn at the restaurant. It is undoubtedly a fancied choice both for busy and lazy people. Consumers compare price, menu, quality, and outlet and select the best option that provides them with value. This is in addition to the time they save, a precious resource in modern times. With the number of smartphone users expected to increase to about 1133 million by 2025 from 847.7 million by the end of 2021, the future seems brighter.
Consumers, too, are changing faster. Nuclear family, husband-wife working, increased disposable income, family members with varying tastes, not interested in kitchen work, and preference for a faster and easy option of getting food – all these have allured consumers to go online. Further, today’s consumers look for utilisation benefits and seek enjoyment, control, experimental value, and emotional arousal in their day-to-day activities. Ordering food online, fortunately, meets most of the wishes. Consumers today expect food to come to them instead of following, travelling, and waiting for it. With per capita spending on food and beverages expected to increase by more than 30% by 2025, many new consumers are likely to join the bandwagon, and existing customers will increase their online purchases.
There are two different types of online food delivery players in the market. First, the online food delivery system owned and run by established restaurants or food outlets, like Pizza Hut and Domino’s, makes home food delivery after consumers put their orders on their website. Next are food delivery platforms like Swiggy and Zomato, which source food from multiple restaurants and outlets and deliver it to consumers. In India, though restaurant-owned online food delivery is more popular and has a consumer penetration of 15.7%, online delivery platforms, with a penetration rate of 6.4%, are catching up very fast.
Online delivery platforms democratise the food market. Platforms provide every consumer with the opportunity to have food from any outlet, making it possible for smaller and not-so-popular food outlets to serve many consumers. In addition, food delivery platforms make local, traditional, and even international cuisine available to all consumers—a win-win situation for everyone.
The online food delivery system has further decentralised and democratised entrepreneurship with concepts like dark kitchens or ghost kitchens. Dark kitchens create opportunities for established industries to extend their kitchen work and for professionals and entrepreneurs to start a new venture, even with a limited budget, by partnering with delivery platforms. Understanding what, how, and when customers order and how to meet those orders in the least amount of time at a lower price is crucial for the business’s success. It seems that online delivery players are mastering these tricks faster.
Delivering food in the proper packaging is more than 50% of food quality, and the industry seems to learn it slowly but steadily. It can be ensured that hot desi samosa and dosa reach the customer with the same crispiness as those served in restaurants. Hyderabadi Biryani, if not served as it appeared on the screen while ordering or with the fragrance that biryani is expected to have, may upset the customers. Restaurant owners have started using innovative packaging, and delivery partners have added specialised carrying boxes and well-planned routes through which foods are reaching faster and safely. Swiggy food survey 2021 indicates that Biryani and Desi Samosa were the most ordered meals and snacks, respectively, indicating that food delivery players in India are doing it briskly.
Food delivery platforms are labour-intensive, and their success is dependent on their partners. Their delivery persons, called “gig workers” in business terminology, are among the most crucial players in their business. Zomato, India’s second food delivery platform after Swiggy, employs more than 1,60,000 gig workers. Though their remuneration, working hours and conditions have come under scrutiny and have become the subject of debate, no one disagrees that the business creates many jobs at the field level.
No doubt, advancing technologies, changing customers and innovations in the delivery business will result in the rapid spread of the industry. However, the food delivery business still has to cover a long distance before stabilising and settling down. Most delivery companies are yet to achieve their break-even and will require working hard to spread their reach and optimise costs. The business remains immensely competitive and reliant on the external business environment.
In 2021, Indians ordered food worth 11782 million US dollars online, 30.4% more than the previous year. If the excitement the recent IPO of Zomato created, the presence of at least one food delivery platform for more than 100 million consumers, and fast-moving bikers with food in every lane are any indication, it establishes that online food delivery has arrived in India, and it will continue to grow and flourish.
Niraj Kumar is a Professor of Rural Management at XIM University, Bhubaneswar.
Unprecedented transformation of the HR industry
HR, as one of the most paper-intensive and technologically resistant industries, has undoubtedly undergone an unprecedented transformation. The HR industry has changed course and jumped on the technology bandwagon, from handing out pay slips and pink slips to building teams and organisations. HR and technology were once two words that were never used in the same sentence, but today they have integrated and taken the business world by storm.
HR has undoubtedly undergone an unprecedented transformation as one of the most paper-intensive and technologically resistant industries. The human resources industry has shifted its focus from issuing pay stubs and pink slips to forming teams and organisations. HR and technology were never used in the same sentence until recently, but they have now integrated and taken the business world by storm.
EVOLUTION OF THE HR FUNCTION
As the pandemic drove nations to lockdowns and businesses to disruption, HR was thrust to the frontline to facilitate this wave of changes. From handholding employees, as they took up remote work to embracing new technologies such as AI and automation themselves, the purview of HR widened overnight. The HR department made possible the overnight pivot to remote work, organisation-wide move to the cloud and years’ worth of digital transformation within months. As organisations’ appetite for technology grows, the demand for HR tech is building up simultaneously to catalyse change.
MASTERING REMOTE WORK MANAGEMENT
Today, an organisation’s workforce is dispersed across different geographies owing to remote work arrangements. To enable employees to carry out diverse tasks remotely, HR teams must provide them with facilitating tools and technologies. At the same time, they require the right tools and technologies to carry out HR tasks remotely. On top of that, HR teams need to maintain the organisation’s culture even when people can no longer see each other in person. Technologies such as cloud computing, unified communication tools, performance management software and video conferencing technologies help HR teams master remote work management.
BRAVING TALENT MARKET CHALLENGES
Remote work mandate meant for the talent market proliferation of job opportunities, wider talent pools and a shift to virtual hiring practices. This resulted in a surge in demand for video interviewing, virtual onboarding and AI-based technologies. In an ever-evolving talent market, a slew of challenges such as the war for talent and the ‘great resignation’ has erupted. As a result, organisations are increasingly investing in automation, AI and data analytics to optimise their hiring processes and enjoy time and cost savings. Additionally, such HR technologies enable recruiters to hire higher-quality candidates faster.
RE-ENVISIONING EMPLOYEE EXPERIENCE
As the resignation pile mounts up and the stack of resumes becomes less than a handful, HR teams across the globe are racking their brains in the quest for a cure-all. Technology allows HR teams to rethink their employee experience and reinforce their talent retention strategies. From improving the employee onboarding process to supporting greater work-life balance to elevating employee wellbeing, technology is helping HR to reshape the employee experience. Consequently, investments in tools and technologies such as intelligent chatbots, video conferencing, recommended learning and development, etc., that enhance employee experience are continuously rising.
CONTINUOUS RESKILLING AND UPSKILLING
The global pandemic ushered in a period of great reshuffling, which meant new technologies, tools, innovations and even new jobs. As many jobs, skills and practices become obsolete, HR leaders must upskill and reskill their workforce to take on new responsibilities and challenges. Technologies that enable faster learning paths, interactive and engaging journeys and performance tracking saw an uptick in demand. As digital transformation becomes a permanent fixture on CEO agendas, constant reskilling and upskilling are becoming a priority for HR leaders. As a result, giving rise to persistent demand for new learning and development technologies.
Technology is enabling organisations to inch closer to the future of work and evolve with it. The coming together of HR and technology can catalyse this wave of change. By making the most of this window of opportunity, HR can evolve from an auxiliary authority to an enabling force.
Yogita Tulsiani is the MD & Co-founder of iXceed Solutions, which is a global tech-recruiter provider.
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