Cloud watch on hrms solutions q1 2013_final_04042013 pre-read

Cloud Watch on HRMS solutions
Summary Version
March 2013

Transform to the power of digital

Contents

Introduction
A sneak peek at the Market
HRMS application footprint
Contact Details

2

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
Scope solutions currently available in the market

Tim van der Wal, CC NL Study Format
Enterprise application landscape
Sponsor Ronald v/d Berg, CC NL
Power point
CRM MRP SCM Lysette Kampman, CC NL

Authors Version Status Delivered in
HRM SRM Finance
CC India, Research
Q1, 2013 Q1, 2013
services

Copyright © 2013 Capgemini Consulting. All rights reserved.
3

Contents

Introduction
A sneak peek at the
Market
Contact Details

4

A sneak peek at SaaS industry (1/2) March, Q1, 2013

Vendor corner
 Kronos introduced new mobile applications for webTA, a workforce management solution
 Cornerstone OnDemand launched Cornerstone for Salesforce, which is designed to offer talent management tools
build directly into Salesforce's platform
 Lumesse released the CourseBuilder 6M, a SaaS e-learning authoring platform
 ADP launched the ADP Smart ComplianceSM, a cloud-based unified platform of outsourced services companies better
manage key tax, employment and payroll compliance capabilities
 Saba launched the latest update of Saba People Cloud, an innovative, cloud-based service featuring fully integrated and
robust enterprise learning and talent processes

Partnerships, alliances and M&As

 Oracle plans to acquire cloud infrastructure management software startup, Nimbula
 itelligence AG and Wipro have joined SuccessFactors Partner Program as a SuccessSales Partner and
Strategic SuccessConsulting Partner
 Cezanne software is to be acquired by Talentia by Lefebvre Software, a French software firm
 Cloud provider, Appirio has partnered with Cornerstone OnDemand to broaden its talent management
portfolio

5

A sneak peek at SaaS industry (2/2) March, Q1, 2013

Analysts speak
 SuccessFactors was ranked as a Leader in The Forrester Wave(TM): Talent Management, Q1 2013 for its Performance &
Goals, Succession & Development, and Learning Solutions
 In the Bersin by Deloitte research, SumTotal is identified as the world's Learning Management Systems market share
leader
 Saba was the winner at the Customer and Partner Excellence Awards
 The International Association of Outsourcing Professionals (IAOP) has named Ceridian to the prestigious Global
Outsourcing 100 list for the eighth consecutive year

Events

 Callidus Software Inc has announced the program for CallidusCloud C3 2013, the company's annual
customer conference, to be held May 5-7 at the ARIA Hotel, Las Vegas
 HR Directors International Summit 2013, an ultimate gathering of International and EMEA HR
professionals happening in Prague this year, bringing together key Human Resources personnel, HR
thought leaders, HR practitioners and leading HR service providers

6

Contents

Introduction
HRMS application
footprint
Contact Details

7

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 management
Onboarding Career planning Talent review
recruiting

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


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
9

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

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
10

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
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

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
11

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
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

of the offering;

Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; The Forrester Wave: Talent Management: Learning, 2011; CC India Analysis
12

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

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
13

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
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

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
14

Contents

Introduction
Contact Details

15

Want to know more? In the full version you will find which HR cloud applications have
which functionality

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

Cloudwatch Expert
Managing Consultant People & Performance

Mob: +31 6 29560779
Secretary : +31 (0)30-6898844
Mail to : Lysette.Kampman@capgemini.com

16

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Cloud watch on hrms solutions q1 2013_final_04042013 pre-read