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SAP SuccessFactors - Next Generation HCM Technology 2021

Vendor Analysis

by Elizabeth Rennie

published on Sep 07, 2021

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Report Overview:

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

Who is this Report for:

NelsonHall’s HCM technology profile on SAP SuccessFactors 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 security services 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 SAP SuccessFactors 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 of delivery locations.

Key Findings & Highlights:

SAP SuccessFactors (an SAP company), formed in 2001 and headquartered in Palo Alto, CA, is a global provider of cloud-based HCM technology.

SAP SE acquired SuccessFactors in February 2012 specifically for its cloud-based talent management capabilities. SAP SuccessFactors remained an independent company and subsidiary of SAPSE. Prior to the SAP acquisition, SAP SuccessFactors made several acquisitions to complement and advance its capabilities.  Example pre-SAP acquisitions include:

  • Jobs2Web (2012): talent acquisition
  • Plateau (2011): learning management
  • Jambok (2011): social learning platform
  • Inform (2010): Performance measurement and workforce planning.

Following the acquisition by SAP, SAP SuccessFactors began expanding its focus beyond talent management software by developing its core HR capability, and in 2010 launched SAP SuccessFactors Employee Central, a cloud-native HR system of record for the suite. Since acquiring SAP SuccessFactors, SAP has invested in the expansion of its capability, primarily through organic development and select acquisitions; examples include:

  • SwoopTalent (2021): AI-driven talent insights
  • Litmos (2018): learning management
  • Qualtrics (2018): analytics
  • Multiposting (2015): talent acquisition/job postings
  • Fieldglass (2014): contingent workforce management
  • KMS Software (2020): onboarding.

SAP SuccessFactors is a cloud-native HCM technology suite, offering a solution to support the full lifecycle of events and all types of workers (e.g., employees, freelance/contractors).  The suite is globally enabled through localizations for >100 countries and provides a mobile-first user experience (UX) by design, enabled through dedicated apps for iOS and Android.  SAP SuccessFactors is AI and ML-enabled across its solutions for guided, intelligent recommendations and predictive insights for a personalized user experience. 

The SAP SuccessFactors HXM suite supports >7k clients, >180m users across >200 countries globally, including >40% of Fortune 500 companies and >30%.

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