Human Capital Management (HCM) Market Size, Share & Industry Analysis, By Offering (Solutions/Software and Services), By Deployment (On-Premise and Cloud), By Organization Size (SMEs and Large Enterprises), By Industry (IT & Telecom, BFSI, Government, Retail, Healthcare, Education, Manufacturing, Others) and Regional Forecast, 2019 - 2026

KEY INDUSTRY INSIGHTS

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The global human capital management (HCM) market size stood at USD 15.04 Billion in 2018 is projected to reach USD 30.55 Billion by 2026, exhibiting a CAGR of 9.4% during the forecast period.

Today, the need for proper data processing and management has increased rapidly. Human capital management solutions refers to a refined set of practices related to people resource management dedicated towards fulfilling management needs of organizations. It provides specific skills such as a unified HCM software suite. For instance, Workday HCM software suite helps organizations prioritize security and privacy so that it can support regulations, including GDPR compliance as in the case of European Nations.

HCM solutions and services enable optimization of different functions such as applicant tracking, sourcing and recruiting, payroll and compensation, time and attendance management, workforce scheduling, among others. HCM solution delivers specific capabilities to the organization by allowing it to implement human resource in three major categories which include workforce acquisition, workforce management, and workforce optimization.

Thus, HCM encompasses a complete set of practices for recruiting, managing, developing, and optimizing human resources in an organization. Recent developments include incorporation of a cloud-based solution and automated recruiting technology.

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There has been an increasing focus on providing employee engagement solutions, enabling employees to be more efficient by building employee experience platforms and suitable collaboration solutions. In today’s progressing workforce conditions, HR leaders are considering more investment in technology that can assist in recruitment, management, and optimizing human resources, i.e., employees of their organization.

According to a report published by the Society for Human Resource Management (SHRM) in 2018, around 66% of organizations have readily adopted human capital management solutions globally. Organizations across the globe are experiencing digital transformation which has resulted in the robust growth of corporate data. Human resource management enables the organization to view employees as an asset that could be financed in and managed to make the most of their business value.

MARKET DRIVERS

“The emergence of artificial intelligence and machine learning for data analysis, likely to foster the market.”

Among the primary drivers of human capital management market growth include growing demand for talent mobility and adoption of cloud-based business models in HRM services. For instance, in 2018, Infor acquired Alfa-Beta solutions intending to deploy a cloud-based solution in HRM services. This acquisition resulted in the launch of ‘CloudSuite HCM’’. CloudSuite HCM is an advanced set of cloud-based HCM software to offer secure, easy processes, workflows, and systems with clean refined automated technology. Further, the growth of AI and machine learning technology also stands among prominent market drivers. Machine learning in HCM delivers recommendations and analysis to improve processes through the identification of trends and patterns.

“Platform as a Service (PaaS) to offer extended capability in an HCM suite, emerges as a prominent market trend.”

Platform as a service (PaaS) in HCM is an emerging human capital management market trend. It functions as an application toolkit provided by HR software vendors. Advantages of PaaS include improved integration of extended capability beyond its delivered configuration possibilities within an HCM suite, and this is possible across multiple vendors. Efficient human resource management software and services help in managing strategic change, determining critical workforce, identifying innovative talent solutions, and addressing talent needs for designing organizations to face business challenges.

SEGMENTATION

By Offering Analysis

“HCM solution segment to generate the highest revenue during the forecast period.”

Based on the offering, the scope of study is classified into solution and services. The solution is cross segmented into core HR, talent management, workforce management, payroll & compensation, and others. Core HR and workforce management solutions are estimated to be the leading segments fostering the market demand. Core HR solution helps HR personnel to efficiently manage the employees’ data and maintain transparency between the employees and management.

Workforce management solutions help in data analyzing for core business processes and maintaining various HR activities. HCM services, including consulting & application services and HR transformation services, are expected to exhibit high growth rate with rising demand for migration services, extension, and plug-in development.

By Deployment Analysis

“Cloud offerings is projected to exhibit a healthy CAGR during the forecast period”

Based on the deployment, the scope includes on-premise and cloud segments. Shifting preference for cloud based software solutions in organizations is probable to create lucrative market opportunities. Cloud technologies allow consumers to use SaaS without buying it and access remote services and data using a web browser.

Cloud-based human capital management software helps organizations to gain an in-depth understanding regarding the trends, preferences, and improvements. This knowledge is utilized for effective and efficient marketing, supply chain, and retail decisions based on analytical outputs.

By Organization Size

“Large enterprises to hold significant market share in terms of revenue generation.”

By organization size, the report covers SME’S and large enterprises. Small and Medium Enterprises (SMEs) are likely to generate a substantial market revenue during the forecast period. Considering the cost benefits, SMEs are expected to adopt the cloud-based deployment model for implementing HCM solutions.

Adoption of HCM software & services is witnessed rapidly by the large enterprises segment mainly owing to the cost-effectiveness and ease of implementation of the process. For the large enterprises, successful human capital management is dependent on flexibility, data privacy, user experience, and ease of system integration.

By Industry Analysis

“BFSI and IT & Telecom industry to account for the highest market share”

Industries considered in the scope of market includes IT & telecom, BFSI, government, retail, healthcare, education, manufacturing, and others.  Workforce management solution replaces the traditional complex methods and is capable of being highly customizable so as to support mobile workforces. As a result, it finds diverse applications across sectors such as banking, finance, insurance, IT & telecom, manufacturing, government, and healthcare. Among the leading industry segments are BFSI, retail, and IT & telecom which together accounted for more than 50% revenue in 2018.

Growth of an organization is determined by employee engagement, learning, and talent recognition. Continuous expansion of the organization’s operational facilities across different regions has created complexities in tracking and managing the globally spread workforce.  Organizations functioning in these leading end use industries have been focusing on acquiring the best possible talent and optimizing the potential of their employees to fulfill their target.

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HCM in healthcare, BFSI, and manufacturing sectors is expected to witness a surging demand. The shift in workforce planning and management is projected to encourage the implementation of HCM solutions to workforce management operations and automate talent acquisition processes.

REGIONAL ANALYSIS

The global human capital management software market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Middle East & Africa, and Latin America, the regions are further categorized into countries for the study. Latin America (LATAM) and the Middle East & Africa (MEA) HCM is projected to exhibit healthy growth. Organizations in LATAM and MEA have started focusing on ensuring that the most valuable asset, its employees are effective, engaged, and motivated. Brazil is implementing initiatives to introduce strategic workforce management into their HRM practices.

North America generated a revenue of USD 7.27 Billion in 2018 and is projected to sustain its dominant position in the global market during the forecast period. Factors responsible for dominant position of North America include implementation of optimized workforce analytics, development of employee experience platforms, and the emergence of mobile applications for HR.

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Spurred by these factors, the adoption of HCM offerings is increasing across major verticals in this region.  In Europe, there is a need to configure and automate workforce management tasks to increase efficiency and compliance.  Also, focus on connecting global workforce transactions and reporting to support local decision-making has favored HCM solutions adoption.

The continuous expansion of cloud solutions is a major driving factor for Asia Pacific, making it the fastest-growing region. Also, the development of a unique platform focused on one particular area, such as core HR, talent management, or workforce management is fueling the demand for human resource management software solutions in the region. According to International Labor Organization (ILO), number of employed persons in Asia Pacific grew by 1-2% (25 million approximately) between 2017 and 2019. People in developing economies are shifting from agricultural and manufacturing sector towards service sector due to higher pay and better lifestyle benefits.

INDUSTRY KEY PLAYERS

“SAP SE, Workday, Inc., Oracle Corporation, ADP Inc., and, Ultimate Software to hold a strong position in HCM market landscape.”

The key players offer HCM software made up using a unique platform, supporting the expansion of capabilities. For instance, Workday HCM suite uses contemporary and standard-based technologies to provide a level of agility, simple implementation along with integration capability. The suite is designed to support multiple HR services and delivery models. Other features offered include pre-built and delivered business process and framework, strong embedded analytics, and localization possibilities. With a shift in focus on enhancing customer experience, majority of market leaders are now aiming to provide solutions designed using multiple acquired platforms and can be integrated easily into any organization’s system.

Oracle HCM offers availability as a stand-alone solution or as part of a broader Oracle solution having flexibility as a fully configurable SaaS solution. The built-in integration capabilities ensure synchronicity with existing systems.

The requirement of strong vendor viability is now becoming a key buying criterion. Ultimate Software’s Cloud HCM Suites for midmarket and large enterprises is well known among enterprise for its ability to execute and visionary inferences.

List Of KEY COMPANIES Profiled

• Accenture PLC


• Automatic Data Processing (ADP), Inc.


• Cornerstone OnDemand, Inc.


• Cezanne HR Ltd.


• Ceridian HCM, Inc.


• IBM Corporation


• Infor


• Kronos, Inc.


• NetSuite, Inc.


• Oracle Corporation


• SAP SE


• Talentsoft


• Ultimate Software


• Workday, Inc.

REPORT COVERAGE

This global market research report provides various key insights such as adoption trend analysis, recent industry developments including mergers & acquisitions, ecosystem analysis, macro, and microeconomic factors, consolidated SWOT analysis, key industry trends, competitive landscape and company profiles.

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Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

• November 2017: Oracle Corporation completely acquired Dyn, Inc. This acquisition was made with an aim to strengthen Oracle’s cloud product offerings by optimizing human resource management functions, such as sourcing and recruiting, workforce scheduling, applicant tracking, and time management.


• March 2017: Infor acquired Accentia Middle East. This acquisition would offer Infor to expand its HRM business process presence in global regions, including the Middle East, North Africa, and India.