HCM Cloud Solution Footprint and Market Overview

Copyright © 2015 Capgemini Consulting. All rights reserved.
Cloud Watch on HCM
Cloud Solutions
CC India, Research
September 2015
Summary Version

Contents
Objective and approach
Sneak Peek at HCM Cloud
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
2

Objectives, Approach and Context
 Provide a single source of information on leading HR Cloud
solution providers across the globe
 Identify leading players across HRM SaaS functionalities
 The study uses publicly available information sources:
– Company websites
– Text line searches
– Industry reports
– Analysts reports
 Cloud computing is a general term for anything that involves
delivering hosted services over the Internet. These services are
broadly divided into three categories: Infrastructure-as-a-Service
(IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service
(SaaS)
 Software as a Service (SaaS) is a software distribution model in
which applications are hosted by a vendor or service provider and
made available to customers over a network, typically the
Internet
 SaaS is a growing phenomenon in the market and has made a
successful penetration into mainstream Enterprise IT
 Earlier, licensed on-premise software was the dominant
deployment model in production, but with time, on premise
vendors have also begun to offer SaaS based solutions
 Coupled with the buyer side objective of reducing the cost of
ownership, the SaaS revolution is bound for exclusive growth
across all forms of a business
 Globally, Capgemini helps many of its clients with the selection
and implementation of Software as a Service solutions, and this
document intends to provide a single source of truth about HR
SaaS solutions currently available in the market, with a focus on
the European market
3
Version Status
Final
Authors
CC India,
Research services
Delivered in
September, 2015
Objectives and Approach Context

Contents
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
4

A sneak peek at HCM Cloud Market (1/2)
5
 Oracle HCM introduced Oracle cloud, a new standard for learning contextually and socially regardless of location for the digital workforce
 Omnicom chooses SAP SuccessFactors HCM suite to simplify HR process and manage its global workforce
 Siemens convergence creators selects Workday to modernize HR organization for future growth
 Workday introduced new planning , budgeting and forecasting application to unify real-time finance and HR data
VENDOR CORNER
 Workday acquired Upshot, a mobile app based startup to upgrade Workday’s natural language processing skills
 Kronos announced about its definitive agreement to acquire the AutoTime business from Kaba Workforce Solutions, LLC
 Cornerstone On Demand and TED partners to spark innovation in professional learning and development
 Lumesse and TheJobPost partner to offer TalentLink customers new recruitment marketplace
PARTNERSHIPS, ALLIANCES AND M&A’S
September, 2015

A sneak peek at HCM Cloud Market (2/2)
6
 SuccessFactors, an SAP SE company, has been positioned as a leader in the Gartner’s 2015 Magic Quadrant for talent management suites
 Kronos has been named as the world market leader by IHS technology in workforce management solutions
 Cornerstone On Demand named as Leader in 2015 Gartner Magic Quadrant for talent management suites
ANALYSTS SPEAK
 HR Technology, a conference and exposition on HR technology to be held on 18th-21st October, 2015 in Las Vegas
 The HR Southwest Conference to be held on 25th – 28th October, at the Fort Worth Convention Center in Fort Worth, Texas
 HR Tech Europe 2015 to be held on 27th – 28th October, 2015 in Paris
EVENTS
September, 2015

Contents
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
7

HCM SaaS solutions can be categorised into Core HR, Workforce, Talent, Learning,
Recruitment Management and Compensation & Benefits
8
HCM Cloud Solution Footprint
Learning
Management
HCM
Solutions
(Cloud &
Mobile)
Core HR
Workforce
Management
Talent
Management
Compensation
& Benefits
Recruitment
management
Employee Records Payroll
Benefit
Administration and
enrollment
Salary and wage
structure
Jobs and positions
Employee
Engagement
Compliance
Organizational
structures
Time reporting
Workforce
scheduling and
assignments
Attendance Productivity Analysis
Paid Time Off
Labor Cost
Distribution
Absence
Management
Performance
Management
Goal Management
Career Planning
Competency
Management
Succession Planning
Talent Review
Retention
Management
Leadership
Development
Learning Course
Administration
Content
Management
Mobile Learning
Mentoring Collaboration
Social and Informal
Learning
Professional
Certification
Bonus Programs
Commissions
Stock and Long Term
Incentives
Employee
Recognition
Base Salary
Administration
Wellness
Retirement and
Savings
Market Pricing and
Equity
(Strategic) Workforce
Planning
Requisitions
Sourcing and Social
Recruitment
Candidate
Engagement
Applicant Evaluation
Diversity & Compliance
Onboarding
Sources:Embrace Future Trends To Deliver HRM Business Impact, Forrester 2014; CC India Analysis

HCM
Solutions
(Cloud &
Mobile)
Core HR
Organizations are integrating social media into core HR activities in an effort to boost
collaboration and there by driving better business outcomes
Core HR Solutions
9
Core HR
Vendor Landscape
Licensed on-premise software remains the dominant deployment
model in production with SaaS based solutions for Core HR segment solutions
Description Vendor Example
Cloud based payroll solution
for small business
 The Solution provides simple payroll, and employee time-
tracking services along with services like job description
templates, job applicant screening, employee handbook
development
 RUN powered by ADP HR and Payroll Solution
Focus on full technology
integration
 Companies need to move away from information silos to
unified Core HR systems
 Solutions must centralize the HR management throughout
the life cycle of employees
 SuccessFactors ‘Employee Central’ enables global HR teams to
focus on creating strategic value for the business by streamlining
processes and providing access to information that supports
faster decision-making
Trends
Completeness /
Strength of the
offering;
Employee Records Payroll
Benefit
Administration and
enrollment
Salary and wage
structure
Jobs and positions
Employee
Engagement
Compliance
Organizational
structures
Sources: Embrace Future Trends To Deliver HRM Business Impact; CC India Analysis; HRMS World: Traditional Models clash With Next-Generation Processes And Technology; www.hrmsworld.com; http://www.elfinancierocr.com

Workforce analytics is helping organizations to overcome the problem of report creation, it
puts an organization in a better position to address business challenges
Workforce Management Solutions (WFM)
10
Time reporting
Workforce scheduling
and assignments
Attendance
Productivity Analysis
Paid Time Off
Labor Cost
Distribution
Absence
Management
Workforce
Management
SaaS adoption continued to grow, as the leading vendors have now begun to offer
both on-premise and SaaS solutions
Vendor LandscapeCompleteness /
Strength of the
offering;
Sources: New trends in workforce solutions; CC India Analysis; Factiva; Kronos Workforce Mobile; CIO.com
Big Data platform enables
workforce management
insights
 The Big Data platform provides data access for business
boost and workforce management like workforce
productivity and retention
 ADP DataCloud for Workforce Management - ADP
Workforce Analytics
 Organizations are adopting analytics in their HR
departments like talent and recruitment which facilitates
easier report creation and opportunity to address business
challenges
 End - to - End system for Workforce Analytics – Workday
Trends
HCM
Solutions
(Cloud &
Mobile)
Workforce
Management

Organizations are leveraging predictive analytics solutions to retain talent, this in turn
ensures cost savings and better performance of the organization as a whole
Talent Management Solutions
11
Performance
Management
Goal Management Career Planning
Competency
Management
Succession Planning Talent Review
Retention
Management
Talent
Management
The market for talent management software is expected to grow from $5.2 bn in 2014
to $11.3 bn by 2019
Vendor Landscape
Completeness /
Strength of the
offering;
Sources: Global Human Capital Trends; HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; Talent Management Solutions based on Big Data; Gamification; CC India Analysis, real business
Gamification in Talent
Management
 Gamification drives higher employee engagement, boosts
productivity and encourage healthy planning  Cornerstone on demand – Cornerstone
 Language Quality – Microsoft Silverlight
Talent Retention through
predictive analytics
 Organizations are increasingly using predictive analytics
solutions to predict which employee is going to quit, they
also try to ascertain the reasons and come up with
strategies to retain the talent and recruitment
 Workday Insights Analytics – Workday
 SuccessFactors workforce Analytics – SAP
 Other examples include ADP,Saba,Skillsoft and Kenexa
Trends
HCM
Solutions
(Cloud &
Mobile) Talent
Management

The intelligent recommendation feature using big data and analytics is the key trend in
Learning Management Solutions
Learning Management Solutions
12
Leadership
Development
Learning Course
Administration
Content
Management
Collaboration
Social and Informal
Learning
Professional
Certification
Mobile Learning
Mentoring
Learning
Management
In Learning Management, the SaaS model currently accounts for 45% of its product
revenues
Vendor Landscape
Completeness /
Strength of the
offering;
Machine Learning 2.0
 The machine learning algorithm explores the data, in a
more accurate way with recommendations much advanced
as compared to predictive analytics
 Workday Insight Applications, a suite of tools that use machine
learning algorithms was introduced to analyze talent data and
make predictions
Mobile enabled Learning and
Bring Your Own Device
(BYOD)
 LMS1 providers are implementing mobile functionalities
and are using HTML5 to make their websites mobile
accessible
 SuccessFactors LMS along with its suite of mobile apps offers at-
a-glance learning thereby allowing employees to complete the
learning courses from a mobile device anytime
Trends
Note:1. Learning Management Solutions
Sources: SuccessFactors website; Saba’s website ;Machine Learning; CC India Analysis
HCM
Solutions
(Cloud &
Mobile)
Learning
Management
Solutions

Recruiting technology is now gravitating toward mobile enabled recruiting, with social
media referrals to identify the right candidate from the entire pool
Recruitment Management Solutions
13
(Strategic) Workforce
Planning
Requisitions
Sourcing and Social
Recruitment
Candidate
Engagement
Applicant Evaluation Diversity & Compliance OnboardingTalent Pools
Recruitment
management
83% of the product revenues1 of recruitment solutions market was contributed by
SaaS based solutions
Vendor Landscape
Completeness /
Strength of the
offering;
Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions)
Sources: http://www.hrtechnews.com; SuccessFactors website; Hype Cycle for Human Capital Management Software; CC India analysis
Growth of social media
referrals
 The solution providers are allowing employees to make
referrals through social network accounts such as
Facebook and LinkedIn
 SuccessFactors Recruitment Execution offers social-
media/employee referral tool as part of its recruiting product
 The system suggests people known to the employees using their
Facebook and Linkedin contacts
Social recruiting and sourcing
are becoming the major
channels for HCM
 Using social media, companies are changing the way to
promote opportunities, as well as tap into employees
personal and professional networks for talent acquisition
 SilkRoad is enabling crowdsourcing activities by offering
collaboration via social portals for recruiting talent
Trends
HCM
Solutions
(Cloud &
Mobile)Recruitment
management

Compensation & Benefits solution vendors are providing solutions to their customers
based on pay-for-performance
Compensation & Benefits Solutions
14
Bonus Programs Commissions
Stock and Long Term
Incentives
Employee Recognition
Base Salary
Administration
Wellness
Retirement and
Savings
Market Pricing and
Equity
Compensation &
Benefits
SaaS penetration in the Compensation and benefits function has gained momentum
and contributes 52% of this segment’s product revenues
Vendor LandscapeCompleteness /
Strength of the
offering;
Sources: HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; CC India Analysis
Compensation vendors
leverage pay-for-performance
 With more companies adopting pay-for-performance, vendors
are providing solutions to help companies align goals and reward
programs for their workforce
 Workscape added performance to its Compensation & Benefits
capabilities
Real time financial solution
 The financial management tool or application allows creation,
collaboration, and taking action on budgets and forecasts to
optimize business growth
 Workday introduced new planning , budgeting and forecasting
application to unify real-time finance and HR data
Trends
HCM
Solutions
(Cloud &
Mobile)
Compensa
tion &
Benefits

Contents
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
15

Executive Summary
Riding on high adoption level of HCM solutions, Global HCM applications market is
expected to have a positive growth in the next five years
16
HCM Application
Adoption Level
Emerging
Technologies
Global HCM
Application Market
Overview
 Global HCM applications market is expected to grow at a CAGR* of 8.2% over the period 2013-2018 from
$10.4bn in 2013 to $15.4bn in 2018
 Streamlining of human resource operations is one of the key factors contributing to the market growth
 The future global HCM market would be driven by CORE HR & Compensation segments in both Americas &
EMEA markets
 The fastest growing segment (CAGR of 10%) is compensation management, which is the newest and smallest
in terms of revenue
 Service delivery HCM solutions has high level of industry adoption compared to other solutions
 Large organizations continue to be the biggest adopters of HCM applications
 The HCM Solutions vendors are increasingly adopting social, mobile enabled processes and workforce analytics
to their HCM solutions
 Organizations are leveraging predictive analytics to hire smarter, this helps them to cut down on recruitment
costs, increase retention and boost performance
 Smart Workspace is improving the digital connectivity of people in an organization with the help of Internet of
Things (IoT), Smart machines and Digital workplace graphs
Note:*Compound Annual Growth Rate

Contents
Market
HCM Cloud Solution
Footprint
HCM market Overview
Contact Details
17

Please get in touch with:
Want to know more?
18
Ronald van den Berg
Principal Consultant HR Transformation
Mob: +31 6 1503 0294
Mail to: ronberg@capgemini.com
Franjola Timmermans
Principal Consultant HR Transformation
Mob: +31 6 1190 2267
Mail: Franjola.Timmermans@capgemini.com
Erik Koningen
Managing Consultant HR Transformation
Mob: +31 6 2954 1848
Mail to: Erik.Koningen@capgemini.com
Peter Speleers
Practice Manager HCM Technology
Transformation Services, Mob: +3227081666
Mail to: peter.speleers@capgemini.com
Marsa Laukkoski
Senior Applications Consultant
Mob: +358406736493
Mail to: marsa.laukkoski@capgemini.com
Par Johansson
Sales Representative
Mob: +46 70 3976165
Mail to: par.johansson@capgemini.com
Andreas Stålbäck
Mob: + 46703395607
Mail to: andreas.stalback@capgemini.com
Graham Dibble
Principal Applications Consultant
Mob: +44 870 195 1137
Mail to: graham.dibble@capgemini.com
Klaus Eckey
Managing Consultant SAP HCM
Mob: +49 151 4025 0080
Mail to: klaus.eckey@capgemini.com
Ronan How
Mob: +447891158643
Mail to: ronan.how@capgemini.com
Jan Redmond
Managing Solution Architect
Mob: +14695837374
Mail to: jan.redmond@capgemini.com
Valery Smague
Principal Consultant Apps Two
Mob: +33 680 620 672
Mail to: valery.smague@capgemini.com
Jose Luis Navarro Sanchez
HRBP Director Spain
Mob: +34 620 024 499
Mail to: jose.navarro-sanchez@capgemini.com

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