We’ve talked extensively about The Future of Work and what it means for HR Technology. The next big question many have is who will lead the change? Where will all the biggest breakthroughs and trends come from? Enter Southeast Asia, which has been hailed as a powerhouse for both rapid growth and development in the HR Technology sector. HR Professionals all over the world are turning their attention to the region, and for good reason too. New practices and technologies are constantly being developed and have the potential to change the way people live and work in the snap of a finger.
According to Tech in Asia’s data, investments in the region’s startups grew from US$2.52 billion in 2016 to US$7.7 billion in 2019. Since the year 2000, economic growth within the region has been relatively stable. Because of its size of population and rapid economic growth, Southeast Asia is predicted by CEO of The Workplace Accelerator, Daniel Callaghan, to have the collective manpower of more than 40% of the world. With over 2000 HR Tech businesses spanning across the APAC region, there is so much room for growth and expansion.
Before the COVID-19 Pandemic, Southeast Asia already had a reputation for being a growing tech hub. With the pandemic hitting the world hard and many having to rely on technology in order to carry out their work functions, Southeast Asian Technology once again were trailblazers in this movement. The COVID-19 Pandemic is said to have accelerated about five years worth of digital transformation in just a matter of months. With organisations being pushed more and more to modernise their HR processes, it is little wonder that HR Technology companies in Southeast Asia are being turned to for the next big advances in technology.
Furthermore, the region is seen as one of the safest emerging markets for investors to work with. The region’s strong macroeconomic fundamentals are another major plus-point that draws new investors to the region. Strong exit momentum and healthy returns are also contributing to the acceleration of investment growth in Southeast Asia. All of these catalysts are contributing factors to Southeast Asia’s growing popularity with investors all over the world.
The Southeast Asian region has a very distinct and diverse range of cultures, languages and identities. It is also gaining recognition as the next HR Tech Hub for its stability, growth and capabilities.