Market Analysis
published on May 24, 2016
Report Overview:
NelsonHall's market analysis of the Cloud Based HR Services industry and Cloud Based HR Services trends consists of 74 pages.
Who is this Report for:
NelsonHall’s “Targeting Cloud Based HR Services” report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within Cloud Based HR Services
- Vendor marketing, sales and business managers developing strategies to target BPO service opportunities within Cloud Based HR Services
- Financial analysts and investors specializing in the IT services and Cloud Based HR Services sector.
Scope of this Report:
The report analyzes the global market for Cloud Based HR Services and addresses the following questions:
- What are the top drivers for adoption of Cloud Based HR Services?
- What are the benefits currently achieved by users of Cloud Based HR Services?
- What factors are inhibiting user adoption of Cloud Based HR Services?
- What is the average contract length for Cloud Based HR Services, and how is this changing?
- What pricing mechanisms are typically used within Cloud Based HR Services, and how is this changing?
- What is the market size and projected growth for the global Cloud HR BPO/multi-process HRO (MPHRO) market?
- What is the market size and projected growth for the Cloud HR BPO/MPHRO market by geography?
- Who are the leading Cloud HR BPO/MPHRO vendors by geography?
- What combination of services is typically provided within Cloud Based HR Services contracts, and how is this changing?
- What is the current pattern of delivery location used for Cloud Based HR Services, and how is this changing?
- What new developments have occurred in the last year and how is this changing?
- What are the challenges and success factors within Cloud Based HR Services?
Key Findings & Highlights:
Due to the proliferation of cloud based HR systems, vendors have launched cloud based HR services, which includes pre-deployment, deployment, and post deployment services.
Pre-deployment services focus on HR cloud consulting services; deployment services focus on the implementation of a SaaS based HR system, including SuccessFactors Employee Central, Workday HCM, Oracle HCM Cloud, or a vendor proprietary HR system; post deployment services include AMS and HR BPO.
The majority of HR BPaaS vendors have adopted an agnostic cloud based platform strategy, supporting SuccessFactors, Workday, and Oracle HCM Cloud. Approximately 25% of vendors exclusively support one particular cloud platform, and ~35% of vendors have a preferred HR cloud technology.
In the last 18 months, vendors have been expanding their HR BPaaS capabilities and also launching or expanding post deployment support services; whereas cloud based HR technology vendors have been enhancing the user experience and expanding payroll and benefits capabilities. The main initiative for HR technology vendors in the next 12 months include improving talent management functions and expanding open networks to increase access to and integration with third party apps.
Transforming/updating existing HR processes and systems in a sustainable model is the top driver for cloud based HR services. Having the flexibility of operating on a cloud based HR system, including access to product innovations and the ease of supporting future growth is also an important driver among organizations.
Desire to leverage previous technology investments and other competing priorities for organizations are the top barriers to cloud based HR services.