The Global Core HR Software Market size is expected to reach $17.3 billion by 2030, rising at a market growth of 7.3% CAGR during the forecast period.
With the introduction of core HR software, all HR-related activities, such as personnel records, benefit administration, payroll, and performance management, are merged into a single platform. Therefore, the software segment would generate approximately 3/5th share of the market by 2030. Traditional HR operations were disjointed, with data dispersed across numerous platforms and manual workflows, resulting in inefficiencies and inconsistent data. This centralization streamlines HR procedures and provides a comprehensive perspective of worker data, enabling reasoned decision-making and strategic planning.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, UKG, Inc. has announced the acquisition the agreement to acquire Immedis, to launch UKG One View. UKG. Additionally, In 2023, May, IBM Corporation acquired Polar Security, to furnish security teams with a comprehensive data security platform encompassing all data formats across various storage locations, including SaaS, on-premises, and public cloud infrastructure.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Mergers and Acquisitions.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Workday, Inc., SAP SE, ADP, Inc., UKG, Inc., Oracle Corporation, Ceridian HCM Holding, Inc., IBM Corporation, Paycom Payroll LLC, Paylocity Holding Corporation and Cornerstone OnDemand, Inc.
With the introduction of core HR software, all HR-related activities, such as personnel records, benefit administration, payroll, and performance management, are merged into a single platform. Therefore, the software segment would generate approximately 3/5th share of the market by 2030. Traditional HR operations were disjointed, with data dispersed across numerous platforms and manual workflows, resulting in inefficiencies and inconsistent data. This centralization streamlines HR procedures and provides a comprehensive perspective of worker data, enabling reasoned decision-making and strategic planning.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, UKG, Inc. has announced the acquisition the agreement to acquire Immedis, to launch UKG One View. UKG. Additionally, In 2023, May, IBM Corporation acquired Polar Security, to furnish security teams with a comprehensive data security platform encompassing all data formats across various storage locations, including SaaS, on-premises, and public cloud infrastructure.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal Matrix; Oracle Corporation is the forerunners in the Market. Companies such as SAP SE, IBM Corporation, ADP, Inc. are some of the key innovators in Market. In April, 2021, SAP SE formed a joint venture with Dediq GmbH, to create tailored applications and services designed exclusively for banking and insurance companies.Market Growth Factors
Acceptance Of Robot Process Automation (RPA)
Robot Process Automation technology is crucial in bringing efficiency and innovation to human resource management solutions and allows businesses to implement improved talent strategies. Companies are searching for innovative approaches to minimize costs associated with service delivery and talent acquisition. Enterprises may standardize operations by reducing unnecessary IT expenditures using RPA capabilities embedded with AI and machine learning. To meet end-user needs, market participants provide cutting-edge tools integrated with RPA. Market players are anticipated to combine RPA with HR tools, including recruiting software and application tracking systems, due to the favorable results of RPA integrated with HR tools across human resource departments. This is anticipated to help the market expansion for core HR software.Rising Acceptance of AI And Automation
The market for core HR software is being entirely transformed by AI and automation, which presents enormous prospects for improving labor management and HR procedures. By analyzing massive amounts of data to find the best candidates, AI-driven algorithms are revolutionizing the hiring process by speeding up the hiring process and raising the quality of employees. Routine HR processes like benefits administration, onboarding, and leave management are simplified by automation, freeing HR professionals to concentrate on strategic projects and employee development. Without needing explicit data entry from the employees, AI features compute and track the workforce's working hours and pay rates, then send the information to payroll for processing. In conclusion, the market for core HR software is expected to increase due to the growing popularity of AI and automation for changing HR operations.Market Restraining Factors
High Deployment Costs of Core Hr Software
Specifically for small & medium-sized businesses (SMEs), the cost of deploying essential HR software has emerged as a significant barrier to adoption. The cost for installation also covers employee training, customization, software licensing fees, data migration, and regular upkeep expenses. Furthermore, depending on the size and complexity of the business, the cost of deploying core HR software could vary from tens of thousands to millions of dollars. SMEs with limited budgets may find such costs onerous and refrain from modernizing their HR systems. The latent potential for core HR software acceptance across multiple company sectors may be unlocked if the cost issues are resolved and more flexible pricing models are offered. Hence, the high cost of such software can hamper the growth of the market.The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Mergers and Acquisitions.
Component Outlook
On the basis of component, the market is segmented into software and services. In 2022, learning management the segment witnessed the largest revenue share in the market. Effective employee learning and development has a beneficial impact on employee performance & organizational competitiveness, making it a crucial component of workforce development and corporate growth. When they receive training, employees are better equipped to acquire and gain new skills, boosting their productivity and competitiveness at work and within their businesses. It entails technological integration, content production, and distribution strategy. LMS aids businesses in creating useful training modules that employees may use to learn and retain information. Since they may access the modules whenever they choose, employees can be more productive and add value to the business.Deployment Type Outlook
Based on deployment type, the market is classified into cloud and on-premise. The on-premise segment recorded a remarkable revenue share in the market in 2022. This can be associated with the many benefits of on-premises deployment, including high data protection and safety. Industries favor on-premises deployment methods over cloud-based deployment models because they offer higher data security and experience fewer data breaches. This preference fuels demand for on-premises deployment models in both the public and private sectors.Vertical Outlook
By vertical, the market is categorized into government, manufacturing, energy & utilities, consumer goods & retail, healthcare, transportation & logistics, IT & telecom, BFSI, and others. In 2022, the government segment generated the highest revenue share in the market. Local governments' Human Resources (HR) division is essential to maintaining employee satisfaction. From the interview through the offboarding process and all in between, HR has a part to play in an employee's path while working for that government agency. The government has a sizable staff; therefore, managing employee paperwork requires software. The government sector seeks improved tools to manage its budgetary challenges and shifting priorities for managing HR.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region led the market by generating the highest revenue share. Such solutions are in high demand due to the region's extensive and diverse corporate environment, including small and medium-sized businesses (SMEs) and international firms. North America likewise has intricate and dynamic labor rules and regulations. By precisely managing tax calculations, payroll, and reporting, the leading HR software aids businesses in abiding by these regulations. Due to its adaptability, scalability, and affordability, cloud-based core HR software is becoming more popular in the area. Cloud solutions simplify accessing HR data, even for distant or distributed teams.The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Workday, Inc., SAP SE, ADP, Inc., UKG, Inc., Oracle Corporation, Ceridian HCM Holding, Inc., IBM Corporation, Paycom Payroll LLC, Paylocity Holding Corporation and Cornerstone OnDemand, Inc.
Strategies deployed in the Market
» Partnerships, Collaborations and Agreements:
- Jun-2023: IBM Corporation expanded its partnership with Adobe, Inc., a US-based multinational software firm, to expedite content supply chains for brands using advanced AI technologies, including Adobe Sensei GenAI services and Adobe Firefly. This partnership aimed to assist clients in navigating the intricate world of generative AI, uniting innovation, technology, and design to digitally transform customer interactions.
- Apr-2023: Workday, Inc. entered a partnership with Alight, Inc., a leading cloud-based human capital technology and services provider, aiming to deliver a streamlined and cohesive payroll solution for HR and payroll experts globally. This partnership empowers customers to expedite their innovation endeavours by replacing fragmented and unconnected processes and systems. Additional advantages encompass payment services, earned wage access, flexible managed service options, and localized proficiency to help organizations.
- Oct-2022: IBM Corporation signed an agreement with BPER Banca Group, the third largest banking group in Italy, to enhance and accelerate the bank’s evolution into a digital business. Under the agreement the bank enhanced its hybrid cloud strategy, modernizing technology infrastructure and applications. Additionally, the collaboration harnessed IBM Cloud for Financial Services' security, scalability, and reliability to address industry compliance, alongside IBM z16 and Red Hat OpenShift for robustness in this heavily regulated sector.
- Apr-2021: Oracle Corporation collaborated with ServiceNow, the leading digital workflow company that makes work better for people. Through this collaboration, enterprise clients utilized their service portal and the ServiceNow IT Operations Management (ITOM) Visibility application to access and oversee OCI resources. Additionally, customers jointly using the Now Platform and OCI benefited from a seamless experience that optimized cloud investments and unlocked the potential of artificial intelligence for proactive operations.
» Product Launches and Product Expansions:
- Apr-2023: Paycom Payroll LLC announced the launch of Global HCM, to enhance its businesses and enable easy-to-use system. Through this Product, Paycom has expanded in footprints around the world. The software, featuring Employee Self-Service® and Manager on-the-Go®, links HR processes to enhance employee engagement in multinational organizations. It offers a unified, single-database model for streamlined operations, eliminating the need for multiple systems and logins.
- Nov-2022: Ceridian HCM Holding, Inc. has introduced Dayforce Wallet, an innovative on-demand pay solution, in the United Kingdom (UK), allowing employees to conveniently access their earned pay when needed rather than waiting until month-end. Dayforce Wallet enabled company to cater to our employees' varied needs, enhance employee engagement, and remain competitive in the evolving world of work.
- Feb-2022: IBM has unveiled its integrated global platform, "Let's create," marking a significant brand initiative in over a decade. This initiative embodies IBM's vision, strategy, and purpose, emphasizing innovation and collaboration to deliver enduring value for clients and partners, addressing critical business challenges. "Let's create" extends an invitation to clients and partners to collaborate with IBM, leveraging the hybrid cloud, artificial intelligence (AI) technology, and consulting proficiency to jointly innovate and solve complex problems.
- Sep-2021: Oracle Corporation announced a new payroll solution, Oracle Payroll Core, that will help organizations, starting with Intergovernmental and Nongovernmental organizations (IGOs and NGOs), navigate complex pay rules and policies to efficiently pay any employee, anywhere. Additionally, through the analysis of payroll data in conjunction with other HR information like competencies, demographics, and performance data, Oracle Payroll Core assists organizations in acquiring the insights necessary for making strategic workforce choices.
» Acquisitions and Mergers:
- Jun-2023: UKG, Inc. has announced the acquisition the agreement to acquire Immedis, a subsidiary of CluneTech, a group of technology companies, to launch UKG One View. UKG One View offers features like country-specific payroll administration, instant payroll reporting, and automated financial integration for sending invoice data to external accounting systems. Additionally, the solution empowered enterprises to handle, monitor, and process payroll information across various countries using a single, user-friendly platform.
- May-2023: IBM Corporation acquired Polar Security, a pioneer in automating cloud data security and compliance. This acquisition aims to furnish security teams with a comprehensive data security platform encompassing all data formats across various storage locations, including SaaS, on-premises, and public cloud infrastructure.
- Jan-2023: ADP, Inc. announced the acquisition of Securax Tech Solutions (India) Private Limited, a time and attendance solutions company in the APAC region. This acquisition will bolster capabilities in leave and time tracking, shift and overtime management, and open doors to burgeoning sectors like Logistics, Healthcare, and E-Commerce in India and APAC.
- Jan-2022: Paylocity Holding Corporation acquired Cloudsnap, a low-code integration platform, to enhance the efficient and effective modern integration and data sharing between crucial systems, unifying and automating HR, Finance, Benefits, and other business processes. Through this acquisition, Paylocity emphasized the significance of fostering robust API integrations, not only among HR applications but also with other business systems like financial software.
- Dec-2021: Ceridin HCM Holding, Inc. took over ADAM HCM, a leading payroll and HCM company serving customers worldwide. This announcement reinforces Ceridian's commitment to introducing Dayforce Payroll in Mexico, the always-available global payroll platform that enhances precision through real-time data auditing and handles worldwide compliance intricacies in a unified solution.
- Sep-2021: Paylocity Holding Corporation entered into an agreement to acquire Blue Marble Payroll, a longtime partner providing international payroll solutions, to help clients better manage their international workforces through a unified solution to pay employees, automate processes, and stay compliant with local regulations in other countries. Through this acquisition, clients enhanced their global workforces using a unified solution for paying employees, automating processes, and ensuring compliance with local regulations in various countries.
- Sep-2021: Workday, Inc. announced the acquisition of Zimit LLC, a cloud based CPQ (configure price quote) solution for the enterprise services industry, to provide quote-to-cash process automation for service sectors like communications, media, technology, and professional services. This acquisition converted customer project or service opportunities into a service-focused quotation and proposal, subsequently transferring them to Workday PSA to generate customer contracts and project specifics.
- Apr-2021: SAP formed a joint venture with Dediq GmbH, a German investment firm, to form a new financial services business unit. The aim of the joint venture is to create tailored applications and services designed exclusively for banking and insurance companies. The new firm produced FSI applications utilizing SAP technologies such as SAP HANA, SAP S/4HANA, and SAP Business Technology Platform to enhance its portfolio.
Scope of the Study
Market Segments Covered in the Report:
By Component- Software
- Learning Management
- Payroll & Compensation Management
- Benefits & Claims Management
- Personnel Management
- Pension Management
- Compliance Management
- Others
- Services
- Cloud
- On-premise
- Government
- Manufacturing
- Energy & Utilities
- Consumer Goods & Retail
- Healthcare
- Transportation & Logistics
- IT & Telecom
- BFSI
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Workday, Inc.
- SAP SE
- ADP, Inc.
- UKG, Inc.
- Oracle Corporation
- Ceridian HCM Holding, Inc.
- IBM Corporation
- Paycom Payroll LLC
- Paylocity Holding Corporation
- Cornerstone OnDemand, Inc.
Unique Offerings
- Exhaustive coverage
- The highest number of Market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market At a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Core HR Software Market, By Component
Chapter 6. Global Core HR Software Market, By Deployment Type
Chapter 7. Global Core HR Software Market, By Vertical
Chapter 8. Global Core HR Software Market, By Region
Chapter 9. Company Profiles
Companies Mentioned
- Workday, Inc.
- SAP SE
- ADP, Inc.
- UKG, Inc.
- Oracle Corporation
- Ceridian HCM Holding, Inc.
- IBM Corporation
- Paycom Payroll LLC
- Paylocity Holding Corporation
- Cornerstone OnDemand, Inc.
Methodology
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