Market Analysis
published on Sep 06, 2018
Report Overview:
NelsonHall's market analysis of the global cloud & multi-process HR services industry and trends consists of 103 pages.
Who is this Report for:
NelsonHall’s “Cloud & Multi-Process HR Services: Journey to the Cloud and Beyond” report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within cloud HR services and multi-process HR services
- Vendor marketing, sales and business managers developing strategies to target service opportunities within cloud HR services and multi-process HR services
- Financial analysts and investors specializing in the cloud HR services and multi-process HR services sectors.
Scope of this Report:
The report analyzes the global market for cloud HR services and multi-process HR services and addresses the following questions:
- What are the top drivers for adoption of cloud HR services? Of multi-process HR services?
- What are the benefits currently achieved by users of cloud HR services? Of multi-process HR services?
- What factors are inhibiting user adoption of cloud HR services? Of multi-process HR services?
- What is the average contract length for multi-process HR services, and how is this changing?
- What pricing mechanisms are typically used within cloud HR services engagements? Within multi-process HR services?
- What is the market size and projected growth for the cloud HR services market overall, by service offering (i.e., advisory, implementation, and AMS support), and by cloud HCM platform (i.e., Workday services, SAP SuccessFactors services, Oracle HCM Cloud services, proprietary, and other)? For the multi-process HR services market overall, by geography, and on-premise v. cloud?
- What is the profile of activity in the global multi-process HR services market by industry sector?
- Who are the leading cloud HR services vendors globally, by service offering, and by cloud HCM platform? Leading multi-process HR services vendors globally and by geography?
- What combination of services is typically provided within cloud HR services contracts, and how is this changing? Within multi-process HR services contracts, and how is this changing?
- What is the current pattern of delivery location used for multi-process 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 HR services? Within multi-process HR services?
Key Findings & Highlights:
The current cloud HR services market is organized around each of the leading cloud HCM platforms, including Workday, SAP SuccessFactors, and to a lesser extent Oracle HCM Cloud.
The main drivers of cloud HR services include a lack of time and resources to properly vet all the HCM system choices, followed by a need for support in making the business case and determining ROI, and complex legacy environments creating challenges for data migration and integrations.
The journey to the cloud for buy-side organizations typically follows a stair-step approach, commencing with either advisory services or implementation, followed by AMS support, and then HR BPaaS.
The current multi-process HR services market is declining as revenues from on-premise deals erode due to the adoption of cloud-based HCM platforms, which have lower TCVs.
The primary benefits of outsourcing multi-process HR services includes the ability to leverage the vendor’s technical and functional knowledge and skills (especially with respect to operating on cloud HCM platforms), a reduced total cost of ownership, and process improvement.
The modern approach to buying multi-process HR services includes a narrow scope of HR BPS processes, typically workforce administration and payroll for ~3-5 years, with the underlying HCM technology platform 100% cloud-based. Vendors operating in the multi-process HR services market place a heavy emphasis on incorporating digitalization, RPA, and machine learning to processes.