HCM Cloud Solutions Q2 2015 Preread

Copyright © 2015 Capgemini Consulting. All rights reserved.
Cloud Watch on HCM
Summary Version
CC India, Research
Q1 2015

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

Objectives, Approach and Context
 Provide a single source of information on leading HR
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 the availability of hardware, software and
data via the internet and it represents the network of
connected computers
 Software as a service (SaaS) is one of the service models
offered in cloud computing along with Infrastructure as a
service (IaaS), Platform as a service (PaaS) and Network as a
service (NaaS)
 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 buy side objective of reducing the cost of
ownership, the SaaS revolution is bound for exclusive growth
across all forms of a business
 Globally, Capgemini Consulting helps many of its clients on
the use 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 Version
Authors
CC India,
Research services
Delivered in
Q1, 2015
Objectives and Approach Context

Contents
4
Market
HCM Cloud Solution
Footprint
Contact Details

A sneak peek at HCM Cloud Market(1/2)
5
 Significant enhancements made to Oracle HCM Cloud, including a next-generation user experience across the entire hire-to-retire process,
mobile functionality, and new integrations to unify the HCM platform >> Read More on Pg 31
 Workday rolled out a new mobile interface to the HCM cloud solution >> Read More on Pg 37
 Kronos released a new workforce ready suite >> Read More on Pg 46
 ADP introduced a new cloud-based marketplace >> Read More on Pg 58
VENDOR CORNER
 Skillsoft completed acquisition of SumTotal Systems from Vista Equity partners >> Read More on Pg 43
 Lumesse partnered with Salesforce >> Read More on Pg 55
 Saba announced that it has entered into a definitive agreement with Vector Capital >> Read More on Pg 64
 Raet completes the acquisition of international HR cloud provider RHPro >> Read More on Pg 73
PARTNERSHIPS, ALLIANCES AND M&A’S
Q1, 2015

A sneak peek at HCM Cloud Market(2/2)
6
Q1, 2015
 SuccessFactors was named a "Leader" in IDC marketScape for worldwide integrated
talent management >> Read More on Pg 34
 ADP was named Leader by Forrester Research in SaaS HR Management Systems >> Read More on Pg 46
 PeopleFluent was named "Leader" in IDC marketScape for worldwide integrated
talent management >> Read More on Pg 40
ANALYSTS SPEAK
 HR Technology, a conference and exposition on HR technology to be held on 18th-21st October, 2015 in Las Vegas >> Read More
 Society for Human Resource Management 2015, an annual conference and exposition will be held from
28th June - 01th July, 2015 in Las Vegas >> Read More
 HR Tech Europe 2015 to be held on 27th – 28th October, 2015 in Paris >> Read More
EVENTS

Contents
7
Market
HCM Cloud Solution
Footprint
Contact Details

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
Enrolment
Salary and wage
structure
Jobs and positions
Employee
Engagement
Compliance
Organisational
structures
Time reporting
Workforce
scheduling and
assignments
Attendance Productivity Analysis
Paid Time Off
Labor Cost
Distribution
Absence
Management
Employee
Performance
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

Organisations tend to integrate social networking activities to leverage Core HR data
activities, to drive best-in-class business results
Core HR Solutions
9
Core HR
“Licensed on-premise software remains the dominant deployment
model in production with SaaS based solutions for Core HR segment
solutions”
Description Vendor Example
Integrating social
media into core
HR activities
boosts
collaboration
 Using HR software that embeds
social media into daily activities
and processes that encourage
employees in all work locations to
communicate and collaborate in
real-time and via mobile app
 Infor’s HCM app fosters collaboration
by displaying social networking
activities and documents from within
the people tracking software
Focus on full
technology
integration
 Companies need to move away
from information silos to unified
Core HR systems
 Solutions must centralise 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
Employee Records Payroll
Benefit
Administration and
Enrolment
Salary and wage
structure
Jobs and positions
Employee
Engagement
Compliance
Organisational
structures
Sources:Embrace Future Trends To Deliver HRM Business Impact, CC India Analysis; HRM Solutions: Traditional Models clash With Next-GenerationP rocesses And Technology; www.workforce.com; http://successfactors-corehr.com/
HCM
Solutions
(Cloud &
Mobile)
Core HR

WFM solution providers are providing both cloud and mobile based solutions to the
customers
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”
Sources: New trends in workforce solutions; CC India Analysis; Factiva ;Kronos Workforce Mobile, Hype Cycle for Human Capital Management Software, Gartner 2013
Adoption of SaaS
based workforce
management
solutions
 The growing adoption of SaaS
based workforce solutions is
expected to be a long-term
stabilizer for positive market
growth with various category of
products for buyers
 Best-of-breed buyers – Kronos
Workforce Central
 Integrated suite – Sage Abra HRMS,
Epicor HCM
 Cost Conscious buyers – OpTime, Ascent
Workzone
Mobile self
service apps
 Organisations are focusing on
implementing workforce mobile
application which could give
employees direct access to their
human resource data
 Kronos Workforce Mobile solution is a
mobile connection that lets the
workforce complete common
administrative tasks right on their mobile
devices
Trends
HCM
Solutions
(Cloud &
Mobile)
Workforce
Management

The integrated talent management solutions based on big data is the major trend in talent
management
Talent Management Solutions
11
Employee
Performance
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”
Sources:Global Human Capital Trends; HRM Solutions: Traditional Models clash With Next-GenerationProcesses And Technology; Talent Management Solutions based on Big Data; PNR Newswire; CC India Analysis
Integrated talent
management
systems is the new
focus to solution
providers
 ERP providers like Oracle, SAP and
Workday etc. are focusing on
incorporating social and mobile interfaces
in their HR solution offerings
 Offering solutions that enable them to
configure integrations to third party HCM
systems of record through the use of
standards-based tools
 Oracle Talent Management Cloud
delivers end-to-end talent
management with a single,
integrated solution that enables
organisations to recruit, nurture,
and retain top talent
Talent
Management
solutions based on
Big Data
 The modern talent manager is facing an
overflow of data and this can be
overwhelming to manage. The big data
tools would help to solve this problem
 IBM incorporated its big data and
analytics capabilities into its
integrated talent suite
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”
Intelligent
recommendation
features
 LMS1 vendors are now adding
intelligent recommendation
features using Big Data analytics and
are starting to implement new
software interface called the Tin-
Can API
 NA
Mobile enabled
Learning
 LMS providers are implementing
mobile functionalities and are using
HTML5 to make their websites
mobile accessible
 Successfactor 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: Successfactor website; Top 14 Learning Management System Trends for 2014; Saba’s website ;IDC: Worlwide Learning Management in Integrated Talent Management 2015 Vendor Analysis; Forbes; CC India Analysis
HCM
Solutions
(Cloud &
Mobile)
Learning
Management

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”
Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions)
Sources: http://www.hrtechnews.com; Successfactor website; Hype Cycle for Human Capital Management Software; CC India analysis
Growth of social
media referrals
 The solution providers are allowing
their employees to make referrals
through social network accounts such
as Facebook and Linkedin
 SuccessFactors Bix Suite 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
Mobile enabled
recruiting
 The Mobile enabled recruitment
systems offers functionalities such as
managing candidates contact,
interview preparations, and
approving requisitions
 Successfactor Mobile recruiting
solutions brings essential recruiting
capabilities such as sharing an offer,
approving requisitions etc on mobile
Trends
HCM
Solutions
(Cloud &
Mobile)Recruitment
Management

Compensation & Benefits tools have become a component of broader Talent Management
suites and there have been significant mergers & acquisitions in the market
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 revenues1”
Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions
Sources: HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; CC India Analysis
Compensation
vendors leverage
pay-for-
performance
 Compensation specialists leverage
the link between rewards and
performance
 Workscape added performance to its
Compensation & Benefits capabilities
Mergers &
Acquisitions
 There have been significant
mergers and acquisitions in the
compensation market during the
past few years
 Kenexa acquired Salary.com, a provider
of on-demand talent management,
payroll, and compensation solutions
and ADP’s acquired Workscape,
provider of integrated benefits and
talent management solutions and
services
Trends
HCM
Solutions
(Cloud &
Mobile)
Compensation
& Benefits

Contents
Market
HCM Solutions application
footprint
Contact Details
15

Please get in touch with:
Want to know more?
16
Ronald van den Berg
Principal Consultant HR Transformation
Mob: +31 6 1503 0294
Mail to: ronberg@capgemini.com
Franjola Timmermans
Managing 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
Consultant
Mob: +46 70 3976165
Mail to: par.johansson@capgemini.com
Andreas Stålbäck
Consultant
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
UK HR Cloud Lead
Mob: +447891158643
Mail to: ronan.how@capgemini.com
Jan Redmond
Senior Sales Representative
Mob: +14695837374
Mail to: jan.redmond@capgemini.com
Valery Smague
Principal Consultant
Mob: +33 680 620 672
Mail to: valery.smague@capgemini.com

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Editor's Notes