Capgemini HR CloudWatch Q3 2012

Cloud Watch on HCM applications
Summary version July 2012

Transform to the power of digital

Contents

Introduction
A sneak peek at the Market
HCM application footprint
Contact details

2

Introduction

Objectives and approach Context
 HR Cloudwatch provides a single source of information on  SaaS is a growing phenomenon in the market and has made a
leading HCM SaaS solution providers across the globe successful penetration into mainstream Enterprise IT. Coupled
 It identifies leading players across SaaS HCM functionalities with the buy side objective of reducing the cost of ownership,
 The study is build on 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
— Analyst 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 HCM SaaS
Full version currently available in the market

This is the summary version of the HR Cloudwatch. On a quarterly
Tim van der Wal, CC NL; Study Format
basis the full version gives you insight in partnerships, client base, Sponsor
news clippings, pricing models and solution portfolio of each Ronald van den Berg, CC NL
Power point
vendor.

Authors Version Status Delivered in
Please feel free to get in touch with one of the sponsors (see
contact details on the last slide) for more information. CC India, Research
Q2, 2012 Q3, 2012
services

Copyright © 2012 Capgemini Consulting. All rights reserved.
3

Contents

Introduction
Contact details

4

A sneak peek at SaaS industry July, Q3, 2012

Vendor corner

 InVision, launched Cloud-based Workforce Management solutions
>> Read More

 Cezanne introduced latest version of its ‘pay as you go’ online HR software system, Cezanne OnDemand
>> Read More

 Kenexa released upgraded Hot Lava Mobile 3.0 for mobile learning and also unveils next generation performance management suite
>> Read More

 SilkRoad added Point to its product portfolio Point - a new social enterprise solution
>> Read More

Partnerships, alliances and M&As

 Expertus announced partnership with Workday
>> Read More

 Kronos, strengthened EMEA presence with acquisition of SMART Computer Holdings
>> Read More

 Cornerstone OnDemand, partnered with Visier Inc, to provide cloud-based workforce analytics and completed acquisition of Sonar
>> Read More

 ADP completed acquisition of the Human Resource Solutions Subsidiary of SHPS, Inc.
>> Read More

5

A sneak peek at SaaS industry July, Q3, 2012

Analyst speak

 Peoplefluent , recognized as market leader in recruitment and compensation management software by IDC’s MarketScape report, 2012
>> Read More

 SuccessFactors, named as overall ‘hot vendor’ in Ventana Research 2012
>> Read More

 Ceridian Dayforce named as Leader in Workforce Management by Nucleus Research
>> Read More

 Saba positioned as a Major Player in IDC's Integrated Talent Management MarketScape report, 2012
>> Read More

Events and awards

 Oracle inaugurated Oracle OpenWorld 2011, Conference
>> Read More

 Workplace Systems conducts a seminar on WorkPlace Systems’ rapid implementation methodology
>> Read More

 Kenexa’s 2012 World Conference to include events in Europe and Asia
>> Read More

 SilkRoad technology, announced 3rd SilkRoad Connections User Conference
>> Read More

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Contents

Introduction
Contact details

7

HRMS SaaS can be categorized into core HRMS, compensation & benefits, talent, learning,
recruitment and workforce management

HRMS SaaS Solution blueprint
Course Virtual
management classroom

Learning content Applicant
Mentoring
Performance Goals management tracking
Sourcing
Succession Organisation
planning charting On-boarding
Learning Social recruiting/
management networking
Competency Strategic Workforce
Career planning
management Talent planning
Recruiting
management HRMS management
Solutions
HRMS Solution
(Cloud &
Core HRMS Mobile) Compensation
Payroll & benefits Pay-for-
Stock based and
Employee deferred
performance compensation
records
Salary Workforce
administration management
Compliance Incentive Market
compensation comparisons
Jobs & Positions
Shared & self Time &
Attendance Benefits Enrollment &
service
administration communication
HR Analytics
Absence Workforce
management scheduling

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; CC India Analysis;
8

Learning management has made the transition from on-premise solutions to SaaS and
leading vendors indicate new deals coming in are heavily weighted to SaaS

Learning management
Learning “The SaaS model currently accounts for 45% of product revenues in
management Learning Management”

Learning
Course Learning content management
Virtual classroom Mentoring
management management
Talent Recruiting
Description Vendor Example
HRMS
 Talent management point solution  SuccessFactors is moving toward an
vendors look at the learning market informal learning offering through Solutions
New Players in its recent acquisition of Jambok Core HRMS
Learning management  Lumesse developed a learning Compensation
platform via its acquisition of & benefits
Trends

ExecuTRACK
Workforce
 As learning has become more  Cornerstone OnDemand, Plateau, management
Learning point
central to employee development, and Saba built performance
solution vendors have
vendors have responded by solutions and now have robust
built or acquired
expanding their solutions' existing integrated offerings
performance
functionality and adding  SumTotal added performance
capabilities
performance management to it through acquisition of Softscape

Vendor Landscape
Point application
Learning
management

Suite of application

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; The Forrester Wave: Talent Management: Learning, 2011;
9

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
management market is deployed via SaaS”

Learning
management
Applicant Social recruiting/ Strategic Workforce
Sourcing On-boarding
tracking networking planning
Talent Recruiting
HRMS
Solutions Description Vendor Example
Core HRMS Compensation  Acquisitions in the applicant tracking  Kenexa acquired BrassRing,
& benefits system (ATS) area mean fewer vendors Cerdian acquired RSI, Sumtotal
Market consolidation and offers to the needs of both acquired Softscape and
enterprise and SMB customers Cybershift
Trends

Workforce
management  Many vendors have made acquisitions  Oracle acquired Taleo to
Growth of installed for intellectual property, advanced provide a richer recruiting
bases of the existing technology, and increase of customer application
players base

Vendor Landscape
Point application
Recruitment
management


Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011;
10

Compensation & benefits tools become a component of broader talent management
suites and there have been significant mergers & acquisitions in the market

Compensation and benefits
Compensation and “SaaS Penetration in the compensation and benefits function has
benefits gained momentum and has penetration rate of 52% in the market ”

pay-for- Stock based & deferred Incentive Learning
performance compensation compensation
management
Market Benefits Enrollment &
comparisons administration communication Talent Recruiting
Description Vendor Example HRMS
 Compensation specialists  Workscape added performance to Solutions
leverage the link between its compensation & benefits Core HRMS
Compensation vendors rewards and performance capabilities & positioned as an Compensation
leverage pay-for-  The link between performance integrated player & benefits
performance and compensation is at least as  Salary.com added performance-
Trends

strong as the link between based talent management Workforce
performance and learning solutions via internal development
management
 There have been significant  Examples include Kenexa
mergers and acquisitions in the acquiring Salary.com and ADP's
Mergers & Acquisitions compensation market during the acquisition of Workscape
past few years

Vendor Landscape
Point application
Compensation and
benefits


Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Hype Cycle for Human Capital Management Software, Gartner-2011; The Four Pillars Of Talent Management,
Forrester Research, 2010;
11

Demand for mobile based WFM, retailers and public sector industries relying on WFM
solutions to improve productivity are some of the trends in workforce management space

Workforce management
Workforce “SaaS adoption has slowly started to evolve, as the leading vendors
management offer both on-premise and on-demand”

Learning
Time & Absence Workforce
management Attendance scheduling
management
Talent Recruiting
HRMS Description Vendor Example
Solutions Strong demand  There is an upsurge in adoption of  Licensed to more than 250,000
mobile based workforce management employees across a wide
Core HRMS Compensation for Mobile WFM solution variety of industries
& benefits  Growing demand for WFM in retail  Reflexis claims that it has
Demand for WFM
Trends

industry, it is estimated to have a CAGR signed 30 new clients in retail
Workforce solutions in retail of 3% till 2015 over past 1 year
management
Increasing  Counties and other departments are  Boulder county implements
extensively relying on WFM solution to Kronos WFM to control labor
instances of public streamline utilisation costs, minimize compliance
sector usage WFM risk, and improve productivity

Vendor Landscape
Point application
Workforce
management


Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Workforce management software, SearchCRM.com product directory, 2009 ; News articles from Factiva;
12

Only new generation software vendors throng the SaaS based core HRMS market and are
slowly seeing acceptance in the market

Core HRMS

Core HRMS
“Mainstream adoption of SaaS based core HRMS has a long
way to go with about 18% revenue contribution”

Employee Salary Learning
Payroll Compliance
records administration
management
Shared & self
Jobs & Positions
service
HR Analytics Talent Recruiting
HRMS
Description Vendor Example Solutions
 Although the overall breadth of HRMS  They are improving their depth Core HRMS
HRMS Footprints Gain Compensation
application suites has not evolved through acquisitions
In-Depth Talent, & benefits
significantly over the past several years,
Analytics, And Global
their depth of functionality has  Oracle
Trends

Capabilities Workforce
improved in several areas  SAP
Outsourcing vendors  Outsourcing and ERP vendors are  Introduces new benefits and
management
and ERP vendors are introducing mobile HR capabilities to flexible spending account
introducing mobile their clients functionality to its ADP mobile
HR apps solutions application

Vendor Landscape
Point application
Core HRMS


Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; The Forrester Wave: HRMS , Q1 2012, Forrester Research; IT Market Clock for HCM Software, 2011,
Gartner Research, 2011;
13

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
management SaaS solutions”

Learning Performance Goals
Succession Organisation
management planning charting

Talent Recruiting Career planning
Competency
management
HRMS Description Vendor Example
Solutions  Organisations that want to be at the forefront must  Provides a new breed of
Growing
Core HRMS Compensation importance of
move their HR practices into social media age now HRIS software which is
 An organisation's social HR strategy reflects its social open and
& benefits social talent
culture, it can enhance productivity within an measurable
management
organisaiton and also collaboration and connectivity
Trends

Workforce
management  More than 35% of organizations are not integrating  NA
Integrating their talent management applications with their
challenges core HRMS applications, according to our customer
with Core reference surveys
HRMS  Lack of usage of an integrated talent management
suite is the main reason for integration challenges

Vendor Landscape
Point application
Talent
management


Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns With Talent Management, Forrester Research, 2011 ; The Talent Management Suite
Market Emerges , Gartner Research, 2011;
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Contents

Introduction
Contact details

15

Want to know more?

Please get in touch with:

Ronald van den Berg Tim van der Wal

Competence Cluster Leader Digital HR Business Development and Sales
Principal Consultant People & Perfomance 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

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Capgemini HR CloudWatch Q3 2012

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