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UKG - Next Generation HCM Technology 2021

Vendor Analysis

by Elizabeth Rennie

published on Aug 31, 2021

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Report Overview:

This NelsonHall assessment analyzes UKG's offerings and capabilities in Next Generation HCM Technology

Who is this Report for:

NelsonHall’s HCM technology profile on UKG is a comprehensive assessment of its offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of HCM technology platforms and identifying vendor suitability for RFPs
  • Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the HR technology and services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of UKG HCM Technology offering, capabilities, and market and financial strengths, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization including the location for key centers.

Key Findings & Highlights:

UKG, dual-headquartered in Weston, Florida and Lowell, Massachusetts, is a provider of workforce management (WFM) and human capital management (HCM) technology and services.

UKG formed in 2020 through the merger of Ultimate Software and Kronos (both owned by private equity firm Hellman & Friedman), forming one of the largest global cloud technology providers with a combined ~70 years of experience and an enterprise value of $22bn. The combined firm has offered payroll technology and services for >30 years, dating back to its forming in 1990.

In 1998, Ultimate Software began launching web-based solutions through UltiPro Web and offering subscription-based solutions over the internet in 2000.  In 2002, it launched UltiPro, the first multi-tenant SaaS HCM solution.

UKG provides the following technology and managed services, which collectively support over 50k client organizations across 165 countries, including:

  • WFM technology:
    • UKG Dimensions
  • HCM Technology:
    • UKG Pro (>8k client adopters): HCM technology platform targeted to midsized firms with >500 employees
    • UKG Ready (>33k client adopters): HCM technology platform targeted to SMB firms with <500 employees
    • UKG HR Service Delivery (>5K client adopters): HRSD technology platform targeted to midsized and large enterprise firms
  • Managed services:
    • HR Transformation consulting and change management
    • Benefits Administration Services, including ACA
    • Partial and fully managed payroll services
    • Tax Filing and Check Printing services
    • UKG Employee Pay offering: payroll treasury and payment services. 

UKG generally targets firms with >100 employees for adopting its HCM technology, including:

  • UKG Pro (>8k client adopters): targeted to midsized firms with >500 employees
  • UKG Ready (>33k client adopters): targeted to SMB firms with <500 employees.

 

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