Time Tracking Software Market

In any business, managing time and tracking the workforce is important as time is one of the most vital resources in business, along with capital and labor. A study by AffinityLive, America Payroll Association, and TSheets showed that almost USD 7.4 billion is lost per day due to unrecorded work activities, the cost of annual time theft is around USD 11 billion, and the annual cost of buddy punching is USD 373 million owing to which tracking employee’s productivity hours is important in any organization. Time tracking offers crucial insights into the business, which helps in maximizing resources performance, improving employee performance, and monitoring working hours. It helps in processing invoices easily, especially in the case of hour-based paid jobs. Time tracking also helps in project management, thereby keeping the projects profitable. The time tracking software helps in keeping the projects on track and under the budget while also allowing for viewing if additional time is being utilized during projects which can be worked upon before the project runs off the rails, thereby increasing productivity. The software also helps in efficient and effective team management. It displays a dashboard representing how effectively a team is working. It displays if the individuals, or even entire teams, are regularly going over their capacity, which helps in improving the employee’s productivity and work-life balance. Thus, growing need among enterprises to increase employee productivity is expected to drive the demand for time tracking software.

Organizations across the globe are currently dealing with rapid innovation in ICT technologies, increasing requirements of increased agility, automation of processes for improving work experience, and fueling operational and financial performance. Enterprises are transforming their businesses and going digital to keep up with the rising demand for agility and scalability for business operations. Cloud adoption has increased at an overwhelming rate over the recent years owing to the benefit it offers in terms of scalability, flexibility, reduced IT costs, access to automatic updates, and collaboration efficiency.

Furthermore, according to MRFR analysis, the global cloud computing market is expected to expand at 19.4% CAGR and is expected to account for USD 340.5 billion by 2024. Adoption of cloud-based time tracking software helps enterprises to capture and update the information of employees even from a remote location through the user’s device. Also, the time tracking software offers easy software updates and version free control, and the user is not responsible for installing the software updates regularly. The traditional software system includes regulation compliance, whereas cloud-based time-tracking software need not worry about compliance as the software is always up to date. Furthermore, the adoption of cloud-based time tracking software offers pay per use features, which reduces the cost requirements for IT resources. Owing to the benefits offered by the cloud-based time tracking software to SMEs as well as large enterprises, the market is expected to witness significant growth during the forecast period.

Time tracking software has witnessed an increase in adoption owing to the benefit it offers to the enterprises for managing and tracking employee productivity and projects. However, there are various open-source platforms available in the market, such as Kimai, Rachota, OpenProject, Charm, eHour, Project Hamster, and Anuko, among others. This free time tracking software offers features similar to the paid time tracking software owing to which the users tend to incline towards these applications. For instance, Kimai, a free and open-source time tracking software for freelancers, agencies, and companies offers features such as timesheet filters, invoice handling, and project management, among others. Also, Anuko, a simple, open-source, web-based time tracking software is a PHP software which allows the users to track the time that employees or teammates spend working on projects and other tasks. Furthermore, it also offers features such as clients, invoices, and paid status plugins, charts plugin, and locking plugin, among others, which simplifies time tracking activities. Thus, the availability of such free and open source time tracking software is expected to hinder the market growth of paid time tracking software available in the market.

Data breaches have gained widespread attention as small & medium enterprises (SMEs), as well as large enterprises, are increasingly becoming reliant on digital data, cloud computing, and workforce mobility. With sensitive business data stored on local machines, enterprise databases, and cloud servers, data breaching has become simple, as easy access has become possible for restricted networks. Due to this, security is always a major concern for any software, especially which are hosted on the cloud. The time tracking software has all the sensitive information in it related to the projects, clients, and all the other activities in enterprises that are highly vulnerable to data breach and could also have a negative impact on the company’s brand image. However, various laws and regulations, such as HIPPA, PCI Data Security, and various security initiatives taken by cloud service providers, are expected to lower the impact of data privacy and security concerns on time tracking software market over the years.