The Western European market for human capital management applications took off in 2006 with 13% growth over the previous year, while the market for payroll applications grew steadily at 4%. The combined HCM and payroll applications market, measured in licenses and maintenance, reached a value of €1.5 billion. Oracle, Sage, and Unit 4 Agresso stood out with double-digit growth in 2006. SAP and Cegid also had a good year with almost 10% growth, followed by Northgate, Personec, and Personel & Informatik. ADP and DATEV saw declining revenues in 2006. Finally, the "Other" segment saw double-digit growth, indicating a market in transition, with smaller vendors taking significant share.
"The HCM market is truly undergoing significant change, and in 2006 we witnessed many key changes including an on-demand segment seeing dramatic 72% growth, while regional HCM and payroll specialists turned their focus towards BPO services," said Bo Lykkegaard, program manager, IDC European Enterprise Applications. "Newer HCM segments such as erecruiting, HR performance management, and incentive management appear on a path of sustainable, high growth. These segments are dominated by best-of-breed vendors that are leveraging deep domain expertise as well as new delivery formats, such as on-demand, to win new customers. However, looking forward, the IDC Leadership Grid analysis shows that ERP giants SAP and Oracle are well positioned for future market share gains as the HCM market matures further."
The study Western Europe, HCM and Payroll Applications, Competitive Analysis, 2007 (IDC #LC05P, September 2007) analyzes the human capital management and payroll applications market in Western Europe and ranks vendors in a variety of segments: Western Europe overall, HCM and payroll, by company size (fewer than 500 employees, 500-4,999, and 5,000 plus), by European country/region, by functional segment (payroll, core HR, workforce management, erecruiting, incentive management, HR performance management) and by deployment model (on-demand vs. on-premises). Additionally, the study analyzes and benchmarks the 10 largest HCM application vendors and 10 largest payroll applications using the IDC Leadership Grid framework.
The study is available to purchase from your local IDC office, or on www.idc.com
"The HCM market is truly undergoing significant change, and in 2006 we witnessed many key changes including an on-demand segment seeing dramatic 72% growth, while regional HCM and payroll specialists turned their focus towards BPO services," said Bo Lykkegaard, program manager, IDC European Enterprise Applications. "Newer HCM segments such as erecruiting, HR performance management, and incentive management appear on a path of sustainable, high growth. These segments are dominated by best-of-breed vendors that are leveraging deep domain expertise as well as new delivery formats, such as on-demand, to win new customers. However, looking forward, the IDC Leadership Grid analysis shows that ERP giants SAP and Oracle are well positioned for future market share gains as the HCM market matures further."
The study Western Europe, HCM and Payroll Applications, Competitive Analysis, 2007 (IDC #LC05P, September 2007) analyzes the human capital management and payroll applications market in Western Europe and ranks vendors in a variety of segments: Western Europe overall, HCM and payroll, by company size (fewer than 500 employees, 500-4,999, and 5,000 plus), by European country/region, by functional segment (payroll, core HR, workforce management, erecruiting, incentive management, HR performance management) and by deployment model (on-demand vs. on-premises). Additionally, the study analyzes and benchmarks the 10 largest HCM application vendors and 10 largest payroll applications using the IDC Leadership Grid framework.
The study is available to purchase from your local IDC office, or on www.idc.com
