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Targeting Cloud Based HR Services

Market Analysis

by Pete Tiliakos

published on Jul 06, 2017

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Report Overview:

NelsonHall's market analysis of the cloud based HR services industry and cloud based HR services trends consists of 73 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 BPS 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 BPS/multi-process HRO (MPHRO) market?
  • What is the market size and projected growth for the Cloud HR BPS/MPHRO market by geography?
  • Who are the leading Cloud HR BPS/MPHRO vendors?
  • 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 continued adoption of cloud based HR systems, vendors have expanded their 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; and post-deployment services include AMS and HR BPS. 

Many 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 12 months, vendors have been enhancing their HR BPaaS capabilities by developing tools and enablers to improve speed of deployment, offering additional services, and expanding post deployment support services. Cloud based HR technology vendors have been focusing (and will continue to focus) investments on enhancing the user experience and expanding talent management capabilities. 

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. 

Table of contents:

Table of contents:

  • Changing Shape of Cloud Based HR Services
  • Customer Requirements
  • Market Size and Growth
  • Vendor Market Shares
  • Vendor Offerings
  • Vendor Targeting
  • Delivery Capabilities
  • Vendor Challenges and Success Factors
  • Appendix I: Vendors Researched for Analysis
  • Appendix II: Vendor Capabilities
  • Appendix III: Abbreviations

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