Evolving Role of HR Analytics in

KPO/BPO Sector
Understanding Current Scenario
and Future Roadmap Submitted by
Group 9
Jiya Singh
Kshitiz Singh
Kumar Ankit
Lucky Sharma
Md Farouq Mallick
Abstract
• Human Resource Analytics is an evolving application field that collects and analyzes
the data to improve an organization's workforce performance examining the
interdependence between people related policies & practices and helps the
organization to gain a competitive advantage. This paper aims to explore the current
scenario of HR Analytics, its implications and the future scope towards Individual
performance and Collective organization's performance. This paper studies the impact
of HR Analytics in different fields of HRM such as Recruitment, Employee
engagement, Employee turnover, Compensation management, Performance
management and Employee retention. We further explore the scope of HR Analytics
and its implications in other functional departments such as Marketing, Operations,
and Business Intelligence. This will also include the relevant IT infrastructure required
for the integration of HR Analytics in an organizational setup. We explore the HR
Analytics scenario in the BPO/KPO sector whose offices are located in Ahmedabad city
and focus on data needs, data characteristics, opportunities created through HR
analytics and also highlighted associated dilemmas of the sector in detail. The result of
the study provides practical information for HR managers aiming to adopt HR
Analytics and how data analysis is helpful in forecasting and making future decisions,
especially in the Indian Outsourcing Industry
Introduction
HR Analytics is a powerful tool for organizations. It helps in making
informed decisions related to the workforce. In a survey, 67% of
respondents based their major decisions on data analysis. HR
Analytics is a shift from traditional HR to data-driven decision-
making. It involves using research and statistical tools to make HR-
related decisions. HR Analytics enhances organizational sustainability,
aligns with strategic goals, and improves return on human investment.
In India, HR Analytics is gaining traction, especially in recruitment
processes. It helps address the talent acquisition challenge in a
competitive market.
Role of HR Analytics
•
Enhancing Decision-Making HR Analytics transforms decision-making by leveraging
data and insights. It enables evidence-based decisions, reducing reliance on intuition.
• Impact on Workforce Utilization : As per the Case Study In the BPO/KPO sector in
Ahmedabad, HR Analytics optimized workforce utilization. By analyzing data, HR
managers identified skill gaps and reallocated resources effectively.
• Result: Improved efficiency and cost savings.
• Impact on Recruitment: As per Case Study Using HR Analytics tools like Kenexa,
SAP, and Oracle, IBM analyzed vast HR data.

• Result: Streamlined talent management, efficient recruitment

processes,
• Impact on Employee Engagement : HR Analytics in Indian IT firms improved
employee engagement. By analyzing feedback and sentiment data, HR could address
issues promptly.
• Result: Enhanced job satisfaction and productivity.
Process of HR Analytics
• Data Collection:
• The first step in HR Analytics is the collection of relevant data. This data can include employee
information, performance metrics, recruitment data, and more.
• Data Processing: Once data is collected, it needs to be processed. This involves cleaning and
structuring the data to make it suitable for analysis.
• Data Analysis:
• HR Analytics relies on advanced statistical tools and research designs. Data is analyzed to identify
patterns, trends, and insights. This analysis can involve various statistical techniques to draw
meaningful conclusions.
• Decision-Making: The insights gained from data analysis are used to inform HR decisions.
These decisions can range from recruitment strategies to performance improvement initiatives.
• Strategic Alignment: HR Analytics aims to align HR practices with the overall strategic goals
of the organization. The data-driven decisions should support the organization's mission and
objectives.
• Continuous Improvement: HR Analytics is an ongoing process. Organizations continuously
collect and analyze data to refine their HR strategies and adapt to changing conditions.
• Technology Integration: In the case study, it's mentioned that HR Analytics often relies on IT
infrastructure. This step involves integrating the necessary technology and tools for data
collection, processing, and analysis. Organizational Impact: The ultimate goal is to measure the
impact of HR decisions on the organization. It's about assessing how HR practices contribute to
HR Analytics in BPO/KPO Sector
• Focus on BPO/KPO Sector: The BPO/KPO sector refers to Business Process
Outsourcing and Knowledge Process Outsourcing. This sector is known for its
specific operational dynamics and workforce challenges.
• Casual and Aloof Approach: In the BPO industry, HR practices often lean towards a
more casual and aloof approach. This can lead to higher employee turnover, a key
concern in this sector.
• Advanced IT Infrastructure: The case study mentions that most BPO/KPOs have
advanced IT infrastructure. This is a unique characteristic that allows for efficient
data collection and analysis, a fundamental aspect of HR Analytics.
• Technological Driven Practices: Unlike some other sectors, BPO/KPOs rely heavily
on technology-driven practices. This makes data collection and analysis more
accessible and practical.
• Challenges in Employee Retention: Employee turnover is a significant challenge in
this sector. HR Analytics can play a crucial role in understanding the reasons behind
this and developing strategies for retention.
• Data Needs and Opportunities: The BPO/KPO sector generates a substantial
amount of HR-related data. HR Analytics can unlock opportunities in areas like
recruitment, performance appraisal, and more
Conclusion
• HR Analytics Importance: HR Analytics has emerged as a vital tool for
organizations, shifting the focus from traditional HR services to data-
driven decision science.

• Strategic Impact: The case study reveals that HR Analytics empowers HR

departments to become strategic partners, aligning human capital
practices with organizational goals.
• India's Significance: India's substantial share in the Big Data Analytics
industry underscores the growing importance of HR Analytics in the
country.
• BPO/KPO Sector: The BPO/KPO sector, with its unique characteristics,
presents both challenges and opportunities for HR Analytics, especially in
talent acquisition and retention. Resource Gap: Despite high interest,
there remains a resource gap, with organizations needing to invest in IT
infrastructure and employee training