Human Capital Management Market

[139 Pages Report] MarketsandMarkets expects the Human capital management market to grow from $14.50 Billion in 2017 to $22.51 Billion by 2022, at an Compound Annual Growth Rate (CAGR) of 9.2%. The forecast period has been considered from 2017 to 2022, while 2016 is considered as the base year for estimating the market size.

Human Capital Management market solutions 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 HR function, Human Capital Management solutions and services are gaining demand. HCM solutions and services enable organizations to realize various benefits such as increased workforce productivity and employee engagement, and reduced cost of HR functions. The base year considered for the study is 2016, and the forecast has been provided for the period between 2017 and 2022.

Selected Market Dynamics in Human Capital Management (HCM) Market

Growing demand for mobile HCM applications

Use of portable devices such as laptops, tablets, and smartphones at the workplace has seen a significant growth. This has enabled employees to access enterprise data utilizing portable devices anywhere at any time, thus facilitating employees with greater mobility. HCM vendors have thus focused on developing HCM mobile applications to cater to the needs of enterprises. HCM mobile applications for Android and iOS have provided HR teams with greater accessibility to manage and track their workforce remotely from anywhere and at any time. In April 2017, InfinityHR launched a mobile app for the HCM platform available for iOS and Android devices, considering the market demand for mobile HCM solutions. Furthermore, in May 2015, PeopleStrategy, Inc. launched a second-generation mobile app for Android and iPhone mobile devices.

Security concerns over cloud-based deployment

Security is still the biggest factor that has restricted the adoption of cloud computing. The SaaS model of HCM provides enormous benefits to the business such as easy deployment and cost effectiveness, but there are various issues related to its usage, such as security breaches, hacking and attacks, and Distributed Denial of Service (DDoS). These are the prime challenges that vendors have to deal with to explore the market. While the low-cost public cloud services that are easily accessible to SMEs are more prone to cyber-attacks and security issues, private cloud, the more secure option, is not affordable for small organizations due to budget constraints. Furthermore, accessing HCM applications on mobile devices can lead to possibilities of being attacked or information leakage. Despite following security precautions such as government regulatory mandates [ISO/PRF 30409, Human Capital Assessment and Accountability Framework (HCAAF)], people still have security concerns that represent the challenges for cloud-based HCM vendors in this market.

The following are the major objectives of the study.

• To define, describe, and forecast the human capital management market on the basis of components (software and services), organization sizes, deployment types, and verticals
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
• To analyze the submarkets with respect to individual growth trends, future prospects, and contribution to the market
• To analyze and forecast the market size in terms of revenue
• To forecast the market size of the market segments with respect to the 5 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To analyze the opportunities in the market for stakeholders by identifying high-growth segments of the market
• To strategically profile the key players of the market and comprehensively analyze their core competencies1 in each microsegment
• To analyze competitive developments, such as agreements, alliances, joint ventures, and mergers and acquisitions in the market

  During this research study, major players operating in the Human Capital Management market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

  

  To know about the assumptions considered for the study, download the pdf brochure

  The market ecosystem comprises vendors, such as Workday, Inc. (US), Oracle Corporation (US), SAP SE (Germany), Kronos, Inc. (US), Automatic Data Processing, LLC (US), and Ultimate Software Group, Inc. (US), service providers, system integrators, and enterprises. Other stakeholders of the Human Capital Management market include human resource vendors, distributors, Original Equipment Manufacturers (OEMs), consulting service providers, human resources service providers, resellers, telecom operators, enterprise users, and technology providers. These Human Capital Management Software Vendors are rated and listed by us on the basis of product quality, reliability, and their business strategy. Please visit 360Quadrants to see the vendor listing of Human Capital Management Software.

  Major Human Capital Management Market Developments

  1. In 2016, Oracle acquired Dyn and NetSuite. These acquisitions helped strengthen Oracles cloud product offerings.
  2. In 2015, SAP formed a partnership with IBM to initiate cloud-to-cloud integration of HR software and services of both the companies to help customers improve their business processes and manage the human resources.
  3. In 2017, Infor acquired Accentia Middle East, which is an exclusive Infor partner serving in the Middle East, North Africa, and India. This acquisition will help Infor to expand its presence in these regions.

  Key Target Audience

  • Human Capital Management solution providers
  • HCM platform providers
  • Recruiting firms
  • Cloud service providers
  • Third-party providers
  • Channel partners
  • Enterprises
  • Professional service providers
  • HR representatives

  Scope of the Report

  The research report categorizes the Human Capital Management market to forecast the revenues and analyze the trends in each of the following submarkets:

  By Software

  • Core HR
  • Workforce management
  • Sourcing and recruiting
  • Applicant tracking system
  • Staffing vendor management
  • Others (Onboarding and recruitment marketing)

  By Service

  • Integration
  • Support and maintenance
  • Consulting

  By Deployment Type

  • On-premises
  • Cloud

  By Organization Size

  • Small and Medium-Sized Enterprises (SMEs)
  • Large enterprises

  By Vertical

  • Banking, Financial Services, and Insurance (BFSI)
  • Government
  • Manufacturing
  • Telecom and IT
  • Consumer goods and retail
  • Healthcare and life sciences
  • Energy and utilities
  • Transportation and logistics
  • Others (hospitality, education, and media and entertainment)

  By Region

  • North America
  • Europe
  • MEA
  • APAC
  • Latin America
  
  

  Critical questions which the report answers

  • What are new application areas which the HCM companies are exploring?
  • Which are the key players in the market and how intense is the competition?
    

  Available Customizations

  With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

  Product Analysis

  • Product matrix which gives a detailed comparison of the product portfolio of each company

  Geographic Analysis

  • Further breakdown of the North American Human Capital Management market into countries
  • Further breakdown of the European market into countries
  • Further breakdown of the APAC market into countries
  • Further breakdown of the MEA market into countries
  • Further breakdown of the Latin American market into countries

  Company Information

  • Detailed analysis and profiling of additional market players

  The Human Capital Management market is expected to grow from USD 14.50 Billion in 2017 to USD 22.51 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 9.2%, because of the increasing complexities in managing the widespread workforce. Moreover, acquiring the right talent is another major factor contributing to the growth of market. The HCM solutions offers different software, such as core Human Resources (HR), workforce management, sourcing and recruiting, applicant tracking system, and staffing vendor management.

  In software, sourcing and recruiting, and workforce management segment are expected to have significant market growth rates in the market during the forecast period from 2017 to 2022. HCM vendors offers various services, such as implementation, training and support, and consulting, in order to help organizations determine the best possible software to fit their specific needs. In the services segment, the support and maintenance service segment is expected to grow at a faster rate. Training and support services facilitate organizations and users to understand the software functionalities, update to the latest features, and also ensure the smooth functionality of the software in the long run.

  The cloud-based HCM solutions are rapidly gaining traction in the deployment type segment. The cloud deployment type stimulates better access to Human Capital Management market data, with faster implementation and reduced total cost of ownership. Considering the cost benefits, Small and Medium-Sized Enterprises (SMEs) are likely to adopt the cloud-based deployment model for implementing Human Capital Management solutions. Furthermore, higher scalability and speed are the other major factors that support the fast growth of the cloud-based deployment model. The market for cloud is expected to grow in the future, as it provides secure access to various administrative activities through an HR portal and enables users to access personal HR data, such as employee records, health benefit information, and payroll information through mobile and desktop devices, virtually from any device.

  The HCM solution and services are being adopted rapidly across various industry verticals, which have led to the growth of the market globally. The consumer goods and retail sector is expected to grow at the highest rate from 2017 to 2022.

  

  The growth of Human Capital Management market is dependent on the factors, such as simplified management of geographically spread workforce, growing demand for mobile applications, and increasing demand for talent mobility are expected to drive the market growth.

  HCM has various features and functionalities like Core HR, Workforce Management, Sourcing and Recruitment, Applicant Tracking System, and Staffing Vendor Management

  CoreHR

  For any organization Core HR software solutions is the primary requirement organization to administer its employee for functions such as payroll and compensation management, benefits and claims management, personnel management, learning management, pension management, compliance management, and succession planning. The solutions help HR personnel to effectively manage the employee and maintain a transparent medium between the management and the employees.

  Workforce Management

  Workforce management software provides features that simplify the work of employees in the organization and provide them time for focusing on more significant business aspects. The workforce management consists of time and attendance management, absence management, workforce scheduling, workforce analytics, performance management, and others (fatigue management and task management). The workforce management software includes time and attendance, workforce scheduling, absence management, workforce analytics, and others, which help in maintaining various HR activities and data analyzing for core business processes.

  Sourcing and Recruitment

  The sourcing and recruitment software helps in finding the right talent from a large pool of job seekers. The software helps in quick search of the potential candidates for specific positions and managing hiring processes. This software helps the HR team to identify individuals, access all vital details of the person, and to take decisions accordingly. The sourcing and recruitment software is expected to grow at a moderate rate in the Human Capital Management Market.

  Supply Chain Optimization

  Supply chain is a complete arrangement of organizations, individuals, resources, information, data, and assets necessary for moving products and services from providers to the end users. Activities in the supply chain transform raw materials into finished products and finally deliver these to customers. Traditional supply chain includes elements such as suppliers, manufacturers, wholesalers, retailers, and finally, customers. The analytics application for supply chain planning and optimization offers data administration and visualization capacities for the supply chain industry. The implementation of analytics in the supply chain is gaining traction because it holds huge potential for innovations and provides a competitive advantage.

  Applicant Tracking System

  The applicant tracking software helps in recruitment tracking and assist recruiters in managing individual information. Resumes of applicants with specific skill set can be tracked and individual information can be updated in the software. It is a very common software used by recruitment teams for talent acquisition. The applicant tracking system software is expanding in the SMEs and is expected to witness a considerable growth during the forecast period.

  Staffing Vendor Management

  The staffing vendor management helps organizations in managing vendors who provide recruitment process services. It helps the organization in reducing workforce and time to recruit for a position in the organization. The vendor helps in sourcing and shortlisting qualified individuals for the position in an organization. The use of staffing vendor management system software is increasing among the SMEs. These software systems are largely used when the recruitment process is outsourced and numerous contingent or temporary positions are filled.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for hyperscale data centers?
  

To speak to our analyst for a discussion on the above findings, click Speak to Analyst