1. Cloud Watch on HCM Applications
Summary Version - Q4 2012
January 2013
Transform to the power of digital

2. Contents
Introduction
A sneak peek at the Market
HCM application footprint
Contact Details
2

3. Objectives, Approach and Context
Objectives and approach Context
 Provide a single source of information on leading HRMS  SaaS is a growing phenomenon in the market and has made a
solution providers across the globe successful penetration into mainstream Enterprise IT. Coupled
 Identify leading players across HRM SaaS functionalities with the buy side objective of reducing the cost of ownership,
 The study will use publicly available secondary information the SaaS revolution is bound for exclusive growth across all
sources: forms of a business
— Company websites  In the market there are many SaaS solution providers, however
their very existence is questionable as traditional on premise
— Text line searches
solution vendors are acquiring these SaaS providers to provide
— Industry reports
themselves with additional revenue channels
— Analysts reports
 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 HRMS
Full Version solutions currently available in the market
This is the summary version of the HR Cloudwatch. On a Tim van der Wal, CC NL; Study Format
Sponsor
quarterly basis the full version gives you insight in partnerships, Ronald v/d Berg, CC NL;
client base, news clippings, pricing models and solution Lysette Kampman, CC NL Power point
portfolio of each vendor.
Authors Version Status Delivered in
Please feel free to get in contact with one of the sponsors (see
CC India, Research
contact details on the last slide) for more information. Q4, 2012 Q1, 2013
services
Copyright © 2013 Capgemini Consulting. All rights reserved.
3

4. Contents
Introduction
A sneak peek at the
Market
HCM application footprint
Contact Details
4

5. A sneak peek at SaaS industry (1/2) December, Q4, 2012
Vendor corner
 Kronos offers the Workforce Management Solution with launch of its Workforce Task Management™ application
 Workday unveils Big Data Analytics for HR & Finance and New Workday recruiting application
 Peoplefluent enhances recruiting solutions with LinkedIn Integration
 Kronos unveils Workforce Tablet, a tablet app to deliver real-time, workforce information
 ADP introduced innovative human resource tools for small businesses
Partnerships, alliances and M&As
 SilkRoad Technology partnered with Mecom Trainex to ease Healthcare compliance-based learning
 Lumesse and PT. SmartSoft Solusindo enter into partnership in Indonesia
 SuccessFactors and NorthgateArinso partner to deliver integrated Global HCM and Payroll Services in the
Cloud
 HRsmart France and DiagoNOS announce strategic partnership to provide comprehensive enterprise
consulting services and talent management solutions to French market
Copyright © 2013 Capgemini Consulting. All rights reserved.
5

6. A sneak peek at SaaS industry (2/2) December, Q4, 2012
Analysts speak
 SumTotal Systems named a leader in HCM solutions by Nucleus Research and a market share leader in Talent
Management by Bersin & Associates
 Cornerstone OnDemand ranked among fastest growing companies in North America by Deloitte’s 2012 Technology Fast
500
 SuccessFactors have been recognized by Ventana Research, a leading business technology and research firm, at the
2012 Technology Innovation Awards
 ADP named a leader MarketScape in Worldwide Human Resource Business Process Outsourcing by IDC
Events and awards
 SilkRoad won silver in 2012 Brandon Hall Excellence Awards
 SafeGuard World International ranks 23rd in the annual Sunday Times Virgin Fast Track 100
 SumTotal honored with Business of the Year Award from the Gainesville Area Chamber of Commerce
 Peoplefluent Mobile Talent Management wins Ventana Research Technology Innovation Award
Copyright © 2013 Capgemini Consulting. All rights reserved.
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7. Contents
Introduction
A sneak peek at the Market
HCM application footprint
Contact Details
7

8. HRMS SaaS can be categorized into core HRMS, workforce, talent, learning, recruitment
management and compensation & benefits
HRMS SaaS Solution blueprint
Benefit
Employee records Payroll Salary and wage
administration and
Base salary structure
enrolment
administration
Employee Organizational
Jobs and positions Compliance structures Absence management
Bonus programs Engagement
Workforce scheduling
Time reporting
Commissions Wellness and assignments
Core HRMS
Stock and long term Retirement and Attendance Productivity analysis
incentives savings
Compensation Workforce
Market pricing and & benefits management Labor cost
Employee recognition
equity HRMS Paid time off
distribution
Solutions
HRMS Solution
(Cloud & Employee Competency
Workforce planning Applicant evaluation
Recruiting Mobile) Talent Performance management
management management
Requisitions Diversity & compliance Goal management Succession planning
Learning
Sourcing and social
recruiting
Onboarding management Career planning Talent review
Candidate Retention
engagement Leadership Learning course Content management
Mobile learning
development administration management
Talent pools
Social and informal Professional
Mentoring Collaboration
learning certification
Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis;
Copyright © 2013 Capgemini Consulting. All rights reserved.

9. Only new generation software vendors throng the SaaS based core HRMS market and are
slowly seeing acceptance in the market
Core HRMS
“Mainstream adoption of SaaS based core HRMS has a long way to go with
Core HRMS
about 18% revenue contribution”
Benefit
Salary and wage
Core HRMS
Employee records Payroll administration and
structure
enrolment
Employee Organizational
Jobs and positions Compliance structures
Engagement
HRMS
Solutions
HRMS Solution
Description Vendor Example
(Cloud &
 Although the overall breadth of  Vendors are improving their depth Mobile)
HRMS Footprints HRMS application suites has not through acquisitions
Gain In-Depth Talent, evolved significantly over the - Oracle acquired Taleo
Analytics, And Global past several years, their depth - SAP acquired SuccessFactors
of functionality has improved in
Trends
Capabilities
several areas
Outsourcing vendors  Outsourcing and ERP vendors  Introduces new benefits and flexible
and ERP vendors are are introducing mobile HR spending account functionality to its
introducing mobile capabilities to their clients ADP mobile solutions application
HR apps
Vendor Landscape
Completeness/Strength
of the offering;
Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; Recruitment Aligns with Talent Management, Forrester Research, 2011; CC India Analysis;
Copyright © 2013 Capgemini Consulting. All rights reserved.
9

10. Mobile based workforce management (WFM), retailers & public sector industries relying
on WFM solutions to improve productivity are some of the trends in the space
Workforce management
Workforce “SaaS adoption has slowly started to evolve, as the leading vendors offer
management both on-premise and on-demand”
Time reporting Attendance Paid time off
Workforce scheduling Labor cost Workforce
Absence management Productivity analysis
and assignments distribution management
HRMS
Solutions
HRMS Solution
Description Vendor Example (Cloud &
Strong demand for
 There is an upsurge in adoption of  Kronos - Licensed to more than Mobile)
mobile based workforce 250,000 employees across a wide
Mobile WFM management solution variety of industries
 Growing demand for WFM in retail  Reflexis claims that it has signed 30
Demand for WFM
Trends
industry, it is estimated to have a new clients in retail over past 1
solutions in retail CAGR of 3% till 2015 year
 Counties and other departments  Boulder county implements Kronos
Increasing instances are extensively relying on WFM WFM to control labor costs,
of public sector solution to streamline utilisation minimize compliance risk, &
usage WFM improve productivity
Vendor Landscape
Completeness/Strength
of the offering;
Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis; Workforce management software, SearchCRM.com product directory, 2009; Factiva;
Copyright © 2013 Capgemini Consulting. All rights reserved.
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11. Integration challenges with Core HRMS, growing importance of social talent management
are the key trends in Talent management
Talent Management
Talent
“58% of total revenue from talent management is through SaaS solutions”
management
Employee
Goal management Career planning
Performance
Competency Retention
Succession planning Talent review
management management
HRMS
Description Vendor Example
Solutions
HRMS Solution
(Cloud &
 Organisations that want to be at the forefront must  Provides a new Mobile)
Growing importance move their HR practices into social media age now breed of HRIS
Talent
of social talent  An organisation's social HR strategy reflects its software which is management
management culture, it can enhance productivity within an social open and
organisation and also collaboration and connectivity measurable
Trends
 More than 35% of organizations are not integrating  NA
their talent management applications with their
Integrating challenges core HRMS applications, according to customer
with Core HRMS reference survey
 Lack of usage of an integrated talent management
suite is the main reason for integration challenges
Vendor Landscape
Completeness/Strength
of the offering;
Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis; Recruitment Aligns With Talent Management, Forrester, 2011 ; The Talent Management Suite Market Emerges , Gartner, 2011;
Copyright © 2013 Capgemini Consulting. All rights reserved.
11

12. Learning management has made the transition from on-premise solutions to SaaS and
leading vendors indicate new deals coming in are heavily weighted towards SaaS
Learning management
Learning “The SaaS model currently accounts for 45% of product revenues in
management Learning Management”
Leadership Learning course Content
Mobile learning
development administration management
Social and informal Professional
Mentoring Collaboration
learning certification
HRMS
Description Vendor Example
Solutions
HRMS Solution
(Cloud &
 Talent management solution  SuccessFactors is moving toward an
New Players in vendors are looking to enter informal learning offering through its
Mobile)
Learning learning management market recent acquisition of Jambok
management  Lumesse developed a learning platform
via its acquisition of ExecuTRACK Learning
Trends
Learning point  As learning has become more  Cornerstone OnDemand, Plateau, and management
solution vendors central to employee development, Saba had built performance solutions
have built or vendors have responded by and now have robust integrated
acquired expanding their solutions' existing offerings
performance functionality & adding performance  SumTotal added performance solutions
capabilities management to it through acquisition of Softscape
Vendor Landscape
Completeness/Strength
of the offering;
Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; The Forrester Wave: Talent Management: Learning, 2011; CC India Analysis;
Copyright © 2013 Capgemini Consulting. All rights reserved.
12

13. Recruiting management solutions have a fair bit of SaaS based solution providers prevalent
in the market
Recruiting Management
Recruiting “Forrester estimates that 83% of the recruitment solutions market is
management deployed via SaaS”
Sourcing and social Candidate
Workforce planning Requisitions
recruiting engagement
Talent pools Applicant evaluation Diversity & compliance Onboarding
HRMS
Solutions
HRMS Solution
Description Vendor Example (Cloud &
 Acquisitions in the applicant  Kenexa acquired BrassRing, Cerdian Recruiting Mobile)
tracking system (ATS) area mean acquired RSI, Sumtotal acquired management
Market consolidation fewer vendors and cater to the Softscape and Cybershift
needs of both enterprise and
SMB customers
Trends
 Many vendors have made  Oracle acquired Taleo to provide a
Growth of acquisitions for intellectual richer recruiting application
installed bases of the property, advanced technology,
existing players and increase of customer base
Vendor Landscape
Completeness/Strength
of the offering;
Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; Recruitment Aligns with Talent Management, Forrester Research, 2011; CC India Analysis;
Copyright © 2013 Capgemini Consulting. All rights reserved.
13

14. Compensation & benefits tools become a component of broader talent management
suites and there have been significant mergers & acquisitions targets in the market
Compensation & benefits
Compensation “SaaS Penetration in the compensation and benefits function has gained
& benefits momentum and is currently 52% of the market ”
Base salary Stock and long term
Bonus programs Commissions
administration incentives
Retirement and Market pricing and Compensation
Employee recognition Wellness
savings equity & benefits
HRMS
Description Vendor Example
Solutions
HRMS Solution
(Cloud &
 Compensation specialists  Workscape added performance to its Mobile)
leverage the link between compensation & benefits capabilities
Compensation rewards and performance & positioned as an integrated player
vendors leverage pay-  The link between performance  Salary.com added performance-based
for-performance and compensation is at least as talent management solutions via
Trends
strong as the link between internal development
performance and learning
 There have been significant  Examples include Kenexa acquiring
Mergers & mergers and acquisitions in the Salary.com and ADP's acquisition of
Acquisitions compensation market during Workscape
the past few years
Vendor Landscape
Completeness/Strength
of the offering;
Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; Hype Cycle for Human Capital Management Software, Gartner-2011; The Four Pillars Of Talent Management, Forrester, 2010; CC India Analysis;
Copyright © 2013 Capgemini Consulting. All rights reserved.
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15. Contents
Introduction
A sneak peek at the Market
HCM application footprint
Contact Details
15

16. Want to know more?
Please get in touch with:
Ronald van den Berg Tim van der Wal
Competence Cluster Leader Digital HR Business Development
Principal Consultant People & Performance Managing Consultant People & Performance
Mob : +31 (0)6 - 15030294 Mob: +31 6 1503 0286
Secretary : +31 (0)30-6898844 Secretary : +31 (0)30-6898844
Mail to : ronberg@capgemini.com Mail to : Tim.vander.wal@capgemini.com
Lysette Kampman
HR Cloudwatch Expert / HR IT Specialist
Managing Consultant People & Performance
Mob: +31 6 29560779
Secretary : +31 (0)30-6898844
Mail to : Lysette.Kampman@capgemini.com
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