Human capital management (HCM) software: Key market research findings
- Increased demand for unified solution for HR function fuels market growth
- On premise segment accounts for a major portion of the market revenue
- Key vendors – ADP, Oracle, SAP Success Factors, Workday, BambooHR, PeopleFluent, Ultimate Software, and Zoho
The market research analysts at Technavio predict the HCM software market in Germany to grow at a CAGR of more than 5% between 2016 and 2020. The growth of the market is augmented by the increased demand for a unified solution for all the HR functions. HCM software unifies and manages all HR functions by integrating all functions into one platform. It also helps organizations plan future staffing needs and share information with other enterprise software such as ERP. HCM enables HR to partner with the recruitment team to locate, hire, and onboard the very best talent for their businesses using a single system.
The new market research report form Technavio presents a breakdown and analysis of the HCM software segments based on the deployment type.
“The market is currently witnessing an upsurge in the adoption of digital HR technology. Organizations are increasingly focusing to improve the entire employee experience by digitalizing HR processes and systems through new digital platforms, apps, and methods of delivering HR services. The technologies that are playing a key role in this transformation are mobile apps, social media, analytics, and the cloud. Digital HR technology integrates social, mobile, analytics, and cloud technologies and provides a single platform for improving the employee and candidate experience,” says Ishmeet Kaur, Lead Analyst, ICT, Technavio Research.
During 2015, the on premises segment dominated the HCM software market in Germany by accounting for around 78% of the overall market share. In this deployment type, the software is purchased and installed on the user’s server and is maintained by the IT personnel in an organization. On premise HCM solutions enable users to enjoy sufficient security in maintaining the employee data.
The key vendors in the HCM software market in Germany include ADP, Oracle, SAP Success Factors, Workday, BambooHR, PeopleFluent, Ultimate Software, and Zoho. Established vendors will acquire smaller vendors to expand their product portfolio and increase their market share. Through such acquisitions, large companies acquire advanced technologies and have an opportunity to enter new markets. In addition, smaller service providers have less success in establishing effective working relationships with end-users, compared with their larger counterparts. Therefore, existing partnerships between small players and large end-users are beneficial to both parties.
A more detailed analysis is available in the Technavio report, HCM Software Market in Germany 2016-2020.
We can customize reports by other regions and specific segments upon request.
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