NEW YORK, July 1, 2024 /PRNewswire/ -- The global human capital management solutions market  size is estimated to grow by USD 13.92 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 9.52%  during the forecast period.  Demand for automated recruitment processes is driving market growth, with a trend towards emergence of cloud-computing services. However, threat from open-source software  poses a challenge. Key market players include Asure Software Inc., Automatic Data Processing Inc., Cegid SA, Ceridian HCM Holding Inc., Cognizant Technology Solutions Corp., EmployWise, Inplenion, Koch Industries Inc., Kronos Inc., OnePoint Human Capital Management, Oracle Corp., PeopleStrategy Corp., Ramco Systems Ltd., Safeguard World International LLC, SAP SE, SolutionDot, Talentia Software Group, The Goldman Sachs Group Inc., Workday Inc., and WorkForce Software LLC.

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Key Market Trends Fueling Growth

Human Capital Management (HCM) solutions are increasingly utilizing cloud computing technologies to offer cost-effective and efficient services. Cloud storage enables centralized control over resources and HR activities, eliminating the need for users to manage IT infrastructure. Service level agreements ensure reliable delivery and maintenance. Cloud technologies also provide access to Software as a Service (SaaS) offerings, allowing remote access without installation or management. The integration of cloud with HCM solutions enhances collaboration with other software like ERP, reducing costs and increasing efficiency. Therefore, the adoption of cloud computing is driving the growth of the HCM solutions market. 

The Human Capital Management (HCM) solutions market is currently witnessing significant trends. Companies are focusing on implementing advanced technologies such as cloud, artificial intelligence, and machine learning to streamline their HR processes. These solutions enable organizations to manage their workforce more effectively, from recruitment to retirement. Data-driven decision making is becoming increasingly important, and HCM solutions provide insights into employee performance and engagement. Compliance with regulations is another key trend, with solutions offering features to ensure adherence to labor laws and tax regulations. Overall, HCM solutions are helping businesses optimize their human resources and improve operational efficiency. 

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Market Challenges

• The global Human Capital Management (HCM) solutions market faces significant competition from open-source software solutions. Companies like Sapplica offer HRMS software, such as Sentrifugo, with features including human resource management, performance appraisal, analytics, and more. Open-source software's availability and affordability pose a challenge for HCM market growth, particularly for small-scale enterprises. Separate software offerings for HR functions also add to this competition.
• The Human Capital Management (HCM) solutions market faces several challenges in implementing and optimizing technology for organizations. These include the complexity of integrating various systems, ensuring data security, and providing user-friendly interfaces for employees. Additionally, keeping up with the latest trends and technologies, such as artificial intelligence and machine learning, can be a challenge for smaller businesses. Procuring and implementing HCM solutions requires a significant investment of time and resources, making it essential for organizations to carefully consider their needs and goals before making a decision. Ultimately, the success of an HCM solution depends on its ability to streamline processes, improve efficiency, and enhance the overall employee experience.

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Segment Overview 

This human capital management solutions market report extensively covers market segmentation by

1. Application 
   • 1.1 Core HR
   • 1.2 Talent
   • 1.3 Workforce
2. Component 
   • 2.1 Solution
   • 2.2 Service
3. Geography 
   • 3.1 North America
   • 3.2 Europe
   • 3.3 APAC
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 Core HR-  Human Capital Management (HCM) solutions have become essential for organizations to manage their workforce efficiently. Core HR functions such as recruitment, training, payroll, scheduling, benefits administration, internal relations, and safety and compliance can be effectively managed using HCM applications. The adoption of digital technologies and the need for cost reduction have increased the demand for these solutions. Oracle, SAP, and Workday offer HR functional software solutions to help manage employee data and process information. While HRIS and HRMS were once popular, HCM solutions have gained prominence due to their advanced capabilities. Organizations are expected to increasingly adopt HCM solutions for core HR applications during the forecast period.

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Research Analysis

The Human Capital Management Solutions (HCM) market encompasses a range of offerings designed to enhance business productivity through effective HR Management. These solutions include updated HR Information Systems (HRIS) software and Human Resource Management Systems (HRMS), which address data security concerns by ensuring secure storage and access to sensitive employee information. Emerging vendors and established providers offer various solutions to extend beyond traditional HR functions, such as Strategic Sourcing, Talent Management, and Staff Experiences. Manual labor intensive processes are being replaced with automated product lines, making HCM solutions increasingly essential for businesses seeking to optimize their workforce and improve overall organizational efficiency.

Market Research Overview

The Human Capital Management Solutions (HCMS) market encompasses a range of technologies and services designed to optimize workforce management. These solutions cater to various aspects of HR functions, including recruitment, onboarding, performance management, learning and development, compensation, benefits administration, and succession planning. HCMS enables organizations to streamline HR processes, reduce manual work, ensure compliance with regulations, and enhance employee engagement. With advancements in artificial intelligence, machine learning, and cloud technologies, HCMS solutions offer more personalized, data-driven, and integrated HR experiences. They help businesses of all sizes and industries to effectively manage their workforce, improve operational efficiency, and drive business growth.

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Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• • Core HR
  • Talent
  • Workforce
• Component
• • Solution
  • Service
• Geography
• • North America
  • Europe
  • APAC
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

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SOURCE Technavio