Summary cloud watch_on_hcm_solutions_q3_2012

Cloud Watch on HCM applications
Summary version November 2012

Transform to the power of digital

A sneak peek at SaaS industry (1/2) November, Q3, 2012

Vendor corner

 Workday rolled out the latest version of its human resources and finance cloud service >> Read More
 Cornerstone announced significant enhancements to its talent acquisition solution >> Read More
 Lumesse launches comprehensive on-demand learning content service >> Read More
 ADP unveiled its next-generation ADP Workforce Now® cloud-based platform for midsize organizations >> Read More

Partnerships, alliances and M&As

 Korn/Ferry and SuccessFactors establish strategic partnership to develop solutions >> Read More
 Peoplefluent expands integration with LinkedIn Recruiter >> Read More
 IBM to acquire Kenexa to Bolster Social Business Initiatives >> Read More
 Halogen Software and SHL partnered to provide Talent and Assessment Solutions >> Read More

Copyright © 2012 Capgemini Consulting. All rights reserved.
2

A sneak peek at SaaS industry (2/2) November, Q3, 2012

Analysts speak

 Kronos received the NorthFace ScoreBoard Award from the Omega Management Group for excellence in customer
satisfaction for 2011 >> Read More
 ADP ranked 68, up 19 spots from last year on Forbes’ List of World’s Most Innovative Companies >> Read More
 Silkroad named as a finalist in the 4th Annual 2012 Golden Bridge awards for SaaS/Cloud computing >> Read More
 Ceridian has been named to leading strategy and consulting firm LAROCQUE's #HRWins 2012 HR Companies to Watch
program >> Read More

Events and awards

 Kenexa to unveil its fall 2012 lineup of new HR technology products during the 15th annual HR Technology
Conference & Exposition in Chicago >> Read More
 Meta4 to showcase their Global SaaS HR solution at the international HR Tech Europe 2012 conference
>> Read More
 SumTotal announced the opening of new EMEA headquarters in Reading, U.K >> Read More

3

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

HRMS SaaS Solution blueprint
Course Learning content
management management

Virtual Applicant
Performance Goals Mentoring Sourcing
classroom tracking

Succession Organisation Social recruiting/
Learning On-boarding
planning charting networking
management
Competency Strategic Workforce
Career planning Talent Recruiting
management planning
HRMS
Solutions
HRMS Solution
(Cloud &
Mobile) Compensation
Employee Core HRMS Pay-for- Stock based & deferred
Payroll & benefits
records performance compensation

Salary Workforce Incentive
Compliance management Market comparisons
administration compensation

Shared & self Benefits Enrollment &
Jobs & Positions
service Time & administration communication
Attendance
HR Analytics
Absence Workforce
management scheduling

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

4

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”
Learning
Course Learning content management
Virtual classroom Mentoring
Talent Recruiting
Description Vendor Example HRMS
 Talent management solution  SuccessFactors is moving toward an Solutions
HRMS Solution
New Players in
vendors are looking to enter informal learning offering through its (Cloud &
learning management market recent acquisition of Jambok
Learning
 Lumesse developed a learning
management
platform via its acquisition of Core HRMS
& benefits
ExecuTRACK
Trends

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

Vendor Landscape

Completeness/Strength
of the offering;

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

5

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

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

Vendor Landscape

of the offering;

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

6

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

strong as the link between internal development management
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: 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;
7

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”
Learning
Time & Absence Workforce management
Attendance management scheduling
Talent Recruiting
Solutions
HRMS Solution
 There is an upsurge in adoption  Kronos - Licensed to more than
Strong demand for of mobile based workforce 250,000 employees across a wide
(Cloud &
Mobile WFM management solution variety of industries Mobile) Compensation
Core HRMS
& benefits
 Growing demand for WFM in  Reflexis claims that it has signed 30
Trends

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

Vendor Landscape

of the offering;

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

8

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”
Learning
Payroll
Employee Salary
Compliance management
records administration

Shared & self
Talent Recruiting
Jobs & Positions HR Analytics management management
service
HRMS
Solutions
HRMS Solution
(Cloud &
 Although the overall breadth of  Vendors are improving their depth Mobile) Compensation
HRMS Footprints HRMS application suites has not through acquisitions Core HRMS
Gain In-Depth Talent, evolved significantly over the - Oracle acquired Taleo & benefits
Analytics, And Global past several years, their depth - SAP acquired Successfactors
of functionality has improved in Workforce
Trends

Capabilities
several areas management

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

of the offering;

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

9

Integration challenges with Core HRMS, growing importance of social talent management
are the key trends in Talent management

Compensation & benefits
Talent
“58% of total revenue from talent management is through SaaS solutions”
management
Learning
Succession management
Performance Goals
planning

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

 More than 35% of organizations are not integrating  NA management
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: 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;
10

Ronald van den Berg
Competence Cluster Leader Digital HR
Principal Consultant People & Perfomance
Mob : +31 (0)6 - 15030294
Secretary : +31 (0)30-6898844
Mail to : ronberg@capgemini.com

Tim van der Wal
Business Development and Sales
Managing Consultant People & Performance
Mob: +31 6 1503 0286
Secretary : +31 (0)30-6898844
Mail to : Tim.vander.wal@capgemini.com

11

Summary cloud watch_on_hcm_solutions_q3_2012

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