New York, July 16, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Human Capital Management Market by Software, Services, Deployment Model, Organization Size And Region - Global Forecast to 2025" - https://www.reportlinker.com/p04977710/?utm_source=GNW
7% during the forecast period. Integration of emerging technologies, such as Artificial Intelligence (AI) andMachine Learning (ML), with HCM solutions is expected to be one of the strongest factors for HCM solution and services adoption across regions.
Attractive Opportunities in the Human Capital Management Market
The adoption of the remote work culture by businesses across the globe due to the COVID-19 pandemic is introducing new challenges to HCM software and service providers.The major challenge faced is updating offerings as per the working culture of organizations.
HCM providers can advance their software during this pandemic by adding new capabilities, such as tracking employee health and location.This is expected to boost the adoption of HCM software.
However, cost cutting and delay in projects by enterprises may offer a restraint in the adoption of HCM software.
Cloud deployment modelis expected to grow at a higher CAGR during the forecast period
Majority of HCM solutions are expected to be deployed in cloud, and so cloud based deployment will outperform the on-premises deployment and will have a higher CAGR during the forecast period. Enterprises are moving toward cloud-based deployment to minimize operational cost andachieve greater ease in sharing data with multiple parties.
BFSIindustry vertical to hold the highestmarket share in 2020
The Banking, Financial Services, and Insurance (BFSI) vertical is one of the early adopters of HCM solutions to effectively manage the entire lifecycle of employees.The same trend is expected to be there in coming years, and the vertical is expected to adopt HCM solutions to manage internal as well as external employees.
BFSI enterprises deal with a diverse workforce from office employees, contingent workforce, third-party workforce, and others. As the vertical needs to manage these workforces and comply with government regulations, the vertical will have the highest adoption of HCM solutions and services.
APAC to grow at the highest CAGR during the forecast period
The Asia Pacific (APAC) region is expected to be the top adopter of HCM solutions where the vertical will have the highest growth rate during the forecast period.The APAC region has huge potential in terms of adoption due to the presence of countries such as India, China, and Japan, growing workforce, and huge number of small and medium enterprises.
Small and medium enterprises are expected to have high adoption of HCM solutions in the next 5 years due to the rising demand by these enterprises to manage their workforce.
Market Dynamics
Driver: Integration of AI and ML in HCM suites
The majority of the businesses across verticals are facing the scarcity of highly skilled workforce, as business operations are getting complex day-by-day due to the adoption of the latest technologies and innovations.Thus, HR managers are facing challenges in hiring the right personnel for the right job globally.
Using Artificial Intelligence (AI) and Machine Learning (ML) technologies, HCM suites can help HR managers in finding skilled workforce. AI and ML can help automate the process of recruitment and provide more filters that help in finding the right person.
Companies now offer AI-enabled HCM products that can even read resumes using text analytics to filter out high potential candidates.Predictive analytics using AI and ML helps HR managers by giving them more suggestions about filtering criteria, such as salary, experience, and skills, to narrow down or broaden search results" - Mr.
Neville Postwalla, AVP, Talent Management, Herbiger Group.
Additionally, insights into employee feedback and opinions can be provided by performing sentiment analysis on large datasets through the use of ML algorithms and text analytics.Moreover, AI-enabled intelligent systems are capable of not only understanding behavioral and competency data but also recommending the ideal team for a critical assignment.
Furthermore, AI helps in customizing training programs and developing revamped employee appraisal systems.Customers across the globe are demanding predictive technologies in HCM, especially in employee scheduling, hiring, retention, and compensation management.
Moreover, enterprises are combining the massive amount of employee data with other business data to develop better corporate strategies and manage daily operations.
Restraint: Security concerns over cloud-based deployment
Enterprises are concerned over security, as most of the HCM softwareare in cloud premises, which is managed by a third-party.The majority of the vendors are offering HCM software in cloud to avail cloud technology benefits, such as security, scalability, and IT infrastructure cost reduction.
Cloud-based software often have built-in robust security features.This prevents the dangers of hacking or data breaches.
Still, many businesses are often hesitant to take HR files and systems, which usually include sensitive employee information, and move them to cloud.Thus, enterprises are not ready to move their employee data, payroll, and admin information in cloud.
According to ISG’s survey, data security tops the list of must-have functionalities while organizations select an HR technology platform. Nearly 72% of the organizations consider data security as an important criteria for selecting the on-cloud HCM model, as security breaches were prominent during 2017-18.
Opportunity: Rising adoption of cloud-based software solutions
The cloud-based deployment model has gained significant traction.As per Cisco Global Cloud Index Forecast, the global cloud IP traffic is expected to grow at a CAGR of 30% during 2015–2020.
The cloud-based deployment model offers benefits, such as lucrativeness, easy and high speed of deployment, and more agile management and operations of software.The cloud platform caters to the needs of geographically dispersed business units by providing one consolidated platform.
To leverage the benefits of this technology, organizations are shifting from on-premises HCM software to the HCM software in cloud. Considering the demand for cloud software, HCM vendors are focusing on providing SaaS-based software that help lower costs and achieve higher ROI.
The transition from on-premises deployment to cloud-based deployment is an upcoming opportunity for most vendors, as the on-premises deployment is costlier and riskier as compared to SaaS-based deployment, which offers flexibility and stability to most of the organizations.Furthermore, it also limits capital expenditure and optimizes the return on assets.
Thus, the transition to cloud is an added opportunity for HCM vendors.
Challenge: Data inconsistency due to the adoption of multiple advanced technologies and HR standards among businesses
Data inconsistency is one of the major challenges when deploying HCM systems in an organization.Data generated from different tools deployed by various departments is unstructured.
Businesses across the globe are moving toward digitalization and are adopting the latest technologies such as AI, ML, and IoT.These technologies produce a huge amount of data in different formats.
Thus, dependence on too many applications and technologies can lead to lack of consistency and reliability.The existing HR practices and processes are different for different organizations across the globe.
Every organization has a different set of practices for payroll, employee benefits, and leave management or other functions under HR. Thus, there are no set standards for these practices. This creates an unexpected requirement for customized HCM software setup, which further requires a separate budget. In addition, time to go live gets extended due to multiple customization and testing purposes. If not properly implemented, this could lead to incompetent HCM software, and thus, could lead to wastage of time and money.
In-depth interviews were conducted with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the HCM market.
• By Company: Tier 1–48%, Tier 2–37%, and Tier 3–15%
• By Designation: C-Level Executives–40%, Director Level–34%,and Others–26%
• By Region: North America–42%, Europe–31%,APAC–16%,and RoW – 11%
The HCM market comprises major solution providers, such as Workday (US), Oracle (US), ADP (US), SAP (UK), Microsoft (US), IBM (US), Ultimate Software (US), Ceridian (US), SumTotal (US), Kronos (US),Infor (US), Talentsoft (France), EmployWise (India), PeopleStrategy (US),Cornerstone (US), Meta4 (US), Ramco Systems (India), Bamboo HR (US), Namely (US), Workforce Software (US), Zoho (India), Sage Group (UK), Epicor Software (US), Zenefits (US), Paylocity (US), Gusto (US), Bitrix (US), Benefitfocus (US), WebHR (US), Talentia Software (France), PeopleFluent (US), Vibe HCM (US), Rippling (US), Ascentis (US), and BizMerlinHR (US).The study includes an in-depth competitive analysis of key players in the HCM market with their company profiles, recent developments, and key market strategies.
Research Coverage
The HCM market revenue is primarily classified into revenues fromsoftware and services.Software revenue is associated with HCM tools and software.
Further, services revenue is associated with integration and implementation, consulting, support and maintenance,and training and education services. The market is also segmented on the basis of deployment model, organization size, vertical, and region.
Key benefits of the report
The report would help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall HCM market and the subsegments.This report would help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies.
The report would help stakeholders understand the pulse of the market and provide them with information on the key market drivers, restraints, challenges, and opportunities.
Frequently Asked Questions (FAQs)
1. What is HCM software and services?
HCM software and services streamline the entire Human Resource (HR) process to optimize the management of different functions, such as sourcing and recruiting, payroll and compensation, applicant tracking, workforce scheduling, and time and attendance management.As organizations are focusing on minimizing costs associated with the HR function, HCM software and services are gaining demand.
HCM software and services enable organizations to realize various benefits, such as increased workforce productivity and employee engagement, and reduced cost of HR functions.
2. Who are the top vendors in the HCM market?
The major vendors operating in the HCM market include Workday, ADP, Microsoft, SAP, and Oracle. These vendors have adopted different types of organic and inorganic growth strategies such as new product launches, product enhancements, partnerships, and mergers and acquisitions.
3. Which countries are considered in the European region?
The report includes analysis of UK, Germany, France, and other European countries from Europe region.
4. What are the major HCM software considered in the study?
Major HCM software include core HR, applicant tracking system, HR analytics and workforce management.
5. Does this report include the impact of COVID-19 on HCM market?
Yes, the report includes the impact of COVID-19 on HCM market. It illustrates the pre- and post- COVID-19 market scenario.
Read the full report: https://www.reportlinker.com/p04977710/?utm_source=GNW
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