Suppliers of HRM systems: leaders in different segments

During the period from 2009 to 2011 the largest research companies did not issue reports which would define leaders of the world market of HRM systems in general. However, in 2011 there were several researches devoted to separate segments of the market of personnel management systems. Perhaps, it is connected with the fact that in three years specialization of vendors seriously amplified so comparison of positions of the company in separate subsegments is much more representative, than in general on the market.

It is not surprising that in 2011 the attention of researchers was riveted on a talent management segment which at the moment is the most quickly growing among HRM market segments. According to Forrester, the talent manegement segment will grow on average for 16.5% a year up to 2014.  The Segment of talent management in turn breaks up to subsegments - increases in employee performance and corporate training.

Data of Gartner

Leaders of a subsegment of increase in efficiency

The subsegment of the systems of increase in employee performance (employee perfomance management software) continues to grow despite economic calls, said in a research Gartner - Magic Quadrant for Employee Perfomance Management Software. At the same time new releases key ERP and HRM systems in which this functionality to become are wider, aggravate the competition in relation to suppliers of specialized talent management of systems. In the same time consolidation within a subsegment continues.

By Gartner estimates, the market of performance management systems of employees separately made of  $970 million in 2009, having slightly gone down concerning a mark of  $979 million in 2008. Even despite an economic crisis, revenue of a number of vendors for the specified period grew more than by 25%. The largest share in a subsegment - at SuccessFactors company.

Gartner, 2011

According to a research technique, all vendors are distributed on four groups - the leaders, chellendzher (expecting the chance), the visionaries (having strong competence of certain areas) and niche players. The companies are carried to number of leaders as of 2011 SuccessFactors Halogen Software StepStone Solutions Plateau Systems, Taleo and Cornerstone OnDemand. To number of chellendzher - Oracle PeopleSoft, to number of visionaries- Saba Software Peopleclick Authoria SumTotal Systems. By niche players at the same time are recognized SAP, Oracle EBS Kenexa SilkRoad technology HRsmart Jobpartners TalentSoft Meta4 Cezanne Software Umantis. 

Leaders of a subsegment of the systems of corporate training

Gartner,2011

According to data of a research Gartner under  the name Magic Quadrant for Corporate Learning Systems, leaders in the market of the systems of corporate training (corporate learning systems) are the companies Saba Software Cornerstone OnDemand, Plateau Systems and SumTotal.  To number of visionaries, i.e. those who most close are in relation to leaders the companies are carried Taleo OutStart IMC SumTotal GeoLearning Element K Mzinga Certpoint Meridian Knowledge Solutions.  Chellendzherami (expecting "exit") in a segment of the systems of corporate training are SAP also Oracle EBS OLM and OiL. As for niche players, it Blackboard, PeopleSoft Oracle ELM Ancile Solutions SilkRoad technology. 

Data of Forrester Research

Forrester estimated a condition of subsegments of corporate training and performance management of work of employees within the uniform research.  According to the report  of Forrester Research under the name The Forrester Wave: Talent Manegement, Q2 2011 during which offers of vendors in the market of management systems for talents and increases in employee performance by 108 estimated criteria were analyzed Plateau Systems company with a big separation was ahead of main competitors and became vendor number one in this segment. Among other leaders the Cornerstone OnDemand, Saba Software, Taleo and SumTotal Systems are called. 

SAP and Halogen Software as at the first rather serious road map, and at the second - the high level of customer satisfaction are carried to number of strong players based on a research. 

Leaders of a subsegment of performance management of personnel

Forrester Research, 2011

Leaders of a subsegment of corporate training

Forrester Research, 2011

In subsegments of increase in efficiency and corporate training alignment of forces practically matches with above described except for small nuances which are visible on diagrams. 

Leaders of 2008

ERP vendors

Most the ERP vendors taking the leading positions in the market offer HRM systems as a part of full-function ERP sets: Lawson Software, Oracle, SAP, Workday, Agresso, IFS, Infor, Microsoft, Oracle’s JD Edwards, Sage Software.

HRMS vendors

Specialize in deliveries only of HRM systems: Ultimate Software, High Line, HR Access, Meta4, NuView Systems, Spectrum Human Resource Systems

The companies providing services in outsourcing of accounting and settlement functions

Treat suppliers of this type: ADP and Ceridian.

By what parameters do estimate suppliers of HRMS? 

The Forrester company estimates vendors of HRMS by 104 criteria relating to three main groups:

• current offers,
• development strategy,
• representation in the market.

Among attendees at the market of developers of analytics selected only the companies and their solutions corresponding to the following criteria:

• The functionality of systems covers, at least, all basic tasks of HR (personnel records, a time recording, payroll, awards and other remunerations, compensations, a possibility of self-service, control on compliance to standards).
• Possibility of upgrade,
• Flexibility, convenience and ease of use
• Deployment options, (including SaaS and use of services in outsourcing).
• Technological effectiveness of solutions
• Support of a system and presence of vendor in the market of the USA
• Most of clients have the state over 1000 people
• Among clients there are companies relating to the different industries
• The annual income is not lower than 50 million dollars or not less than 250 employees

7 HRM vendors and 8 HRM systems got to a zone of attention of specialists of Forrester Research.: ADP, Ceridian, Lawson Software, Oracle EBS, Oracle PeopleSoft, SAP, Ultimate Software and Workday.

Leaders in a segment of solutions for the large companies

For large multinational companies as of the end of 2008 Oracle and SAP are still recognized leaders (the SAP products ERP HCM 6.0, Oracle EBS 12.0 and Oracle PeopleSoft 9.0 were estimated). Lawson Software completely rewrote the Strategic Human Capital Management system on Java, having added to it support of features of personnel management in multinational companies and control block development (talents of Talent management). Ultimate Software saves commitment to use of SaaS, being guided thereby by the companies selecting alternative methods of the solution of HR tasks. Among the companies which were only recently among leaders, analysts note Workday proposing the solution on the SaaS model.

Leaders in a segment of solutions for medium-sized companies

The similar picture turned out at assessment of offers for the average market (analysts of Forrester were guided, first of all, by the companies of the USA). Because of the high cost of ownership of Oracle and SAP here conceded leadership of Ultimate Software company (at the Russian market of not presented) which product, having broad functionality, turned out more economic due to deployment its not to a basis of SaaS of model. EBS, PeopleSoft and SAP are won at the expense of the developed functionality, but are considered as more difficult in respect of implementation and support.

Leaders in number of clients