Cloud HRM systems
Adaptation of SaaS will continue in all six main categories of the market of HRM. In a number of segments, such as knowledge managements and compensations, in the next two years there will be a complete reversion.
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In general in the market of HRM systems, regardless of subsegments, whether it be management of working time or talents, traditional models of acquisition of software by purchase of licenses will continue to hand over gradually positions of SaaS and hybrid model of purchase since 2012 and further, according to forecasts of analysts[1].
Advantages and shortcomings of SaaS of HRM
In comparison with 2011 adaptation of the HRM SaaS model grew to 23% in 2012, but did not reach 27% predicted earlier (apart from hybrid models). Analysts note that transformation of the market happens slowly as many companies just experiment with SaaS, in particular the global companies.
Use of different models of purchase of HRM 2012-2013
CedarCrestone, 2012
So, according to forecasts of CedarCrestone, when preserving in the market flowing HRM SaaS loudspeakers will reach parity with purchase of licenses not earlier than 2014. But the tendency to transition to cloud HRM solutions is strong for many reasons, experts believe.
HR services aim to increase use of HRM systems at lower levels, not only management, but also at the level of ordinary employees that it is much easier to provide, using cloud solutions. As well as in other IT markets, the large role is played by an opportunity to reduce investments into infrastructure of HRM projects. Besides, SaaS projects in the field of HRM last 10 times less than traditional deployments that allows to reach effect in much more short time.
On the other hand, at the companies also doubts concerning use of SaaS of HRM remain. Among like those often call unconvincing integration opportunities of cloud solutions, lack of means of customization of solutions, risk of violation of information security of systems and so forth.
Nevertheless, according to the estimates of analysts, the value of the HRM SaaS model is undoubted. Reduction of number of the personnel involved in supports of applications and infrastructure, for example, is relevant for most the organizations (the indicator is expressed as "full-time equivalent" - full time equivalents - FTE). For the small organizations with the state less than 2.5 thousand employees reduction of the involved personnel can be double. For HRM SaaS mid-size companies can service management for 55% of bigger number of employees, than license on premise the program is capable. For the large companies a difference not so considerable, but nevertheless it is.
CedarCrestone, 2012
Also when using HRM according to the SaaS model terms of projects are significantly reduced: if on deployment of a cloud solution 6.7 months, then on the solution licensed by on premise – are required 12.2 months on average. For the large companies, apparently on the chart above, the temporary proportion will be similar – 9.5 months in comparison with 21 months. For medium-sized companies reduction of terms of deployment will be even big – 6.4 months by 16 months. For the small companies – 5.8 months in comparison with 9.5 months.
Expenses on one employee of the company at different models of deployment of HRM 2012-2013
| Size of the company | On Premise 2012 | On Premise 2013 | SaaS 2012 | SaaS 2013 |
| Large | $84 | $99 | $184 | $217 |
| Average | $175 | $219 | $221 | $162 |
| Small | $286 | $336 | $274 | $266 |
CedarCrestone, 2012
Also great value plays expense allocation in terms of one employee when using different models of implementation. For example, in 2013 use of on premise HRM will cost the large company $99 for one employee, and SaaS of HRM – $217. However, for medium and small business cloud solutions provide considerable benefits, providing cost reduction on one user from $219 to $162 and from $366 to $266 respectively.
World market of SaaS of HRM
Replacement by the SaaS model of traditional methods of delivery of HRM 2009-2014
Forrester Research, 2010
2011-2012
According to forecasts of analysts[2] during the period from 2011 to 2015 the world market of SaaS of HRM in a year will increase in volume on average by 12.83%. Gain of demand for similar solutions from a segment of medium and small business will become one of key factors of its growth. Key vendors in this market as of 2012 call Oracle, SAP SE, Ultimate Software and Workday.
The leading vendors in the world market of SaaS of HRM 2012
McLean&Company, 2012
According to McLean&Company[3], market leaders of SaaS of HRM in 2012 were Kronos, SuccessFactors, Ultimate Software, and Workday was referred to category of innovators. The growing players call NuView and Ascentis, and the "rod" player - SilkRoad technology.
2010
Share of SaaS of solutions in different segments of the world market of HRM in 2010
Forrester Research, 2010
Adaptation of SaaS will continue in all six main categories of the market of HRM. In a number of segments, such as knowledge managements and compensations, in the next two years there will be a complete reversion: 80% of sales volume will is the share of a subscription instead of 80% which fall on sales of licenses now. Vendors which are engaged only in SaaS, such as SuccessFactors, Ultimate Software and Workday will show considerable growth rates of business.
Notes
See Also
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