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Human Resource
Software Comparison
2015
A REVIEW OF HUMAN RESOURCE SOFTWARE
FOR LARGE ENTERPRISES IN THE MIDDLE EAST
HUMAN RESOURCE SOFTWARE COMPARISON 2015
Table of Contents
Executive Summary 4
Introduction 5
Chapter 1. HR Software Overview 6
a. HR Software Components 6
b. Business Delivery Model 7
c. Major HR Suite Vendors 8
d. Trends in HR Software Market 9
Chapter 2. HR Software Feature Comparison 11
a. On-premise HR Software 12
b. SaaS HR Software 12
Chapter 3. HR Software Price Comparison 14
Chapter 4. Support by HR Software Vendors 17
a. Global Support 17
b. Support in Middle East 18
Chapter 5. HR Software Integration 19
Chapter 6. Best Practices in HR Software Selection 20
a. HR Software Selection Process 20
b. Questions to Ask During HR Software Selection 24
c. HR Software Checklist 25
Chapter 7. Comparison Summary 26
Chapter 8. Conclusion 27
Appendix 28
a. SAP 28
b. Oracle 28
c. SkillSoft SumTotal 28
d. Workday 28
e. Ultimate Software 28
f. ADP 28
g. Kronos 28
List of Figures
Figure 1: Major components of HCM 6
Figure 2: Major HR software based on delivery model 7
Figure 3: Major HR software vendors 8
Figure 4: SaaS HR software vendor landscape 10
Figure 5: Talent management market growth 10
Figure 6: Pricing models 14
Figure 7: Perpetual license price ranges (in USD) 15
Figure 8: Subscription price ranges (in USD) 15
Figure 9: HR software selection process 20
Figure 10: HR software selection process steps 1-3 21
Figure 12: Questions for HR vendor and references 24
List of Tables
Table 1: On-premise comparison with on SaaS deployment 8
Table 2: Major features of each HCM component 11
Table 3: On-premise based major vendor features comparison 13
Table 4: SaaS based major vendor features comparison 13
Table 5: Software prices for core HR (in USD ) 16
Table 6: Comparison of global support from major HR software vendors 18
Table 7: Support comparison in Middle East 18
Table 8: HR software checklist 25
Table 9: Summary comparison of major HR software 26
Executive Summary
Human Resource (HR) software companies globally are This report entails all major areas that need consideration
enhancing their portfolio in order to support changing before selecting a HR software and help in taking an
customer needs. This report provides a comparative informed decision.
analysis of the major HR software packages available on
the market for large enterprises in the Middle East. This report has been prepared on the basis of detailed
secondary research analysis.
This report covers:
Introduction
Human Resource (HR) software empowers Pricing of HR software continues to remain a dark art
organizational HR to streamline their functions from with little data available publicly. Organizations are
benefit administration to managing employee payroll. recommended to acquire multiple quotations and
Increasingly, HR software is used to manage and grow ensure vendors to compete aggressively for their
talent, attract and retain employees, and long-term business. While the successful deployment of SaaS should
succession planning.
Varied HR software offerings exist in the market aimed reduce TCO, but the increasing number of functions in
at different industries and organization sizes. In order modern HR software may increase costs. To keep costs
to support varying business needs, HR software has under control, organizations should carefully analyze the
transitioned from providing only core HR functions features offered by each vendor and integrate only those
to Human Capital Management (HCM) suites that their business requires.
provide tools such as workforce management, talent
management, and recruitment, as well as core HR and Technical support continues to be strong from vendors
Payroll. that focus on large enterprises. Global telephone
customer support, on-premise technical support,
The growth of HR software into HCM stems from the training, and priority handling are available. However,
need for organizations to maintain competitiveness in services vary from region to region and are subject to
the employment market. The HR software industry is rapid change. Integration with major ERP systems is
enjoying outstanding growth and is expected to rise common, ensuring organizations can continue to use
from USD 9.2 billion in 2012 to USD 13.5 billion by 2017 their existing packages, or migrate away entirely.
at compounded annual growth rate of 8%.
Migrating to any new software package is a complex
A significant source of growth has been from new task that should be undertaken with diligence. This
vendors that have harnessed cloud computing to offer report provides notes on best practices for selecting an
HR software as a SaaS (software-as-a-service). Several HR software vendor, and ensuring smooth integration
large enterprises have migrated to cloud-based HR of new HR software into an organizations systems and
software including Symantec, Aviva, and Yahoo. business processes.
Chapter 1. HR Software
Overview
A. HR SOFTWARE COMPONENTS
On-premise On-premise
SaaS Advantages SaaS Disadvantages
Advantages Disadvantages
Some large enterprises may utilize a hybrid deployment SumTotal, and Ultimate Software. Figure 3 shows the
that provides an on-premise copy (or cache) of the cloud major vendors that offer complete HCM suites covering
service, especially at sites where internet availability major functionalities and tasks used by HR departments
is poor or unreliable. This prevents the enterprise from in large enterprises. For more information on these
losing HR functions if the internet connection goes companies, please see the Appendix.
down.
Note that there are many other vendors providing HR
software on the market, but most are not suitable for
C. MAJOR HR SUITE VENDORS large enterprises.
2: http://ww2.cfo.com/applications/2013/05/hr-tech-vendors-whos-out-there/
3: http://searchfinancialapplications.techtarget.com/feature/Which-HR-tools-are-right-for-your-company
D. TRENDS IN HR SOFTWARE MARKET Oracle and SAP are well-known vendors, and both have
become strong players in the SaaS market through
Transition from Core HR to HCM Suite acquisitions. SumTotal rivals them in feature offerings
The HR software landscape has changed over the past due to its focus on HR software alone. Workday gained
decade based on organizational needs. HR software used popularity by being an early adopter of SaaS for HR
to support only core HR functions, with even payroll often software4. Ultimate Software, ADP, and Kronos have
a separate component. This migrated to best of breed similarly made moves towards SaaS, but their offerings
software that would incorporate various components of are not as feature rich.
what is today known as HCM, but inconsistently across
vendors. Today, the components are well-defined and Rise in Demand for Talent Management
packaged as HCM, and although vendors still vary in Strong competition in many market segments is leading
their support of all HCM features, it is easier to compare. to increasingly long-term strategic planning from
organizations, and HR is no exception. Growing demand
SaaS based HR Software for succession management and hiring and retaining the
SaaS is a revolutionary trend in most software areas, best talent has led to a particularly significant increase in
and the HR software industry is no exception. Major demand for the talent management component of HCM.
ERP vendors and emerging players have invested Figure 5 (following page) shows revenues from talent
significantly to meet the significant rise in demand for management are expected to grow at a compound
SaaS HR software. Several major ERP vendors chose to annual growth rate (CAGR) of 10% from 2012 to 2016;
acquire other companies rather than build their own and reach USD 5.65 billion in 20165. Consequently, many
SaaS solutions due to customer demand. HR software providers have focused development on
this component.
Figure 4 (following page) contrasts the size, strategy, and
offerings of major SaaS HR software vendors.
4: https://www.workday.com/company/news_events/press_releases/detail.
php?id=1884876#.VdTew_mqqko
5: Forrester Report, Forrester Wave: SaaS HR management System report, 2014
Note 1. Bubble size refers to vendor size in by number of customers, strategy refers to expansion in multiple geographies and degree
of focus in acquiring new customers, and customer offering based on features offered by the solution.
Chapter 2. HR Software
Feature Comparison
HCM suites cover six major HR components illustrated component6, which is used in the comparison between
earlier. Table 2 below lists the features of each on-premise and SaaS vendor offerings.
Table 3 (next page) illustrates the strength of offerings Table 4 (next page) illustrates the strength of offerings
from the major on-premise HR software vendors. Not all from the major SaaS HR software vendors. Not all vendors
vendors are listed as either they do not provide on-premise are listed as either they do not provide SaaS delivery, or do
delivery, or do not offer sufficient information about their not offer sufficient information about their SaaS offering
on-premise offering to evaluate with confidence. Refer to evaluate with confidence. Refer to the Appendix for
to the Appendix for brief vendor profiles. brief vendor profiles.
Chapter 3. HR Software
Price Comparison
Pricing of HR software is driven by multiple factors, with There is large scope for negotiation, making it difficult to
limited information available around cost offered by quote accurate price figures.
software or functionality in the open market. Vendors
prefer getting requests along with the requirement Figure 6 below indicates two common pricing models
from potential customers and offer quotes based followed in the market by HR software vendors across the
on customers defined needs, size of the customer, world: the perpetual license model and the subscription
industry of the customer, location of the customer, model.
level of customization required, support and training
requirements, and various internal measures such as
possible competitors.
In addition to licensing costs, there may be further Internally, an organization should also consider costs due
upfront/one-off or recurring costs in a vendor offer: to data migration or additional hardware/IT.
Up-front costs include Prices offered by vendors vary depending on the size of
the organization.
yy Customizations
Figure 71 below shows the price range for perpetual
yy Installation/setup licenses offered by vendors based on company size.
yy Integration with existing systems Figure 82 below illustrates the price range for monthly
subscriptions offered by vendors based on company size.
yy Upgrades
Table 5 (next page) highlights how organizations compare
Recurring costs include on prices for HR software for core HR functionality:
Chapter 4. Support by HR
Software Vendors
A. GLOBAL SUPPORT
Large organizations with global offices or those looking yy How robust is their technical support
to expand into new regions often pay extra attention to
the global support offered by their vendors. HR software In addition to the customer support points above,
is no exception and several vendors offer global support what kind of availability is there for product
at varying levels. experts, system specialists, etc.
Below are the important parameters on which HR yy Software and system maintenance: how and when
software vendors are evaluated for the level of support does the vendor offer updates for critical flaws, and
they offer: how long do they support a certain version of their
software
yy How many regions do they serve directly or through
channel partners yy What training and certification is available, and
through what mediums: online training, on-demand
yy How robust is their customer support training, instructor-led training, self-study courses,
etc.
Is there 24/7 availability
yy What does the vendors online portal offer in terms of
Are there a variety of mediums such as phone, functional and technical documentation, knowledge
email, and chat, base, user community, software downloads, and
issue tracking
Are there dedicated account or service managers
yy Which languages are supported by their software
Are the above available in all regions
Chapter 5. HR Software
Integration
Software integration of an HR system with existing in managing their HR software at various locations and
systems is often a requirement for large enterprises was looking for a solution to integrate their employee
that may be running multiple different systems across information with talent management. It then adopted
global regions (e.g., different payroll systems in different SAP SuccessFactors solution after major consideration
geographic areas). The vendors mentioned in this report around integration with their existing HR software and
all provide support for integration with existing major third party applications10. Alcoa deployed Oracle Fusion
ERP systems, databases, authentication systems, and a HCM with existing Oracle E business suite application to
myriad of third-party applications. support its growth and innovation11.
12: http://www.erpsearch.com/hrms-selection.php 14: Software advice report, Ten steps to selecting a right human resource
13: ACCPAC report, How to choose a HR system software
Each abovementioned step needs to have a Figure 10 below details each of above activities with
predefined timeline attached to it to make the helpful information regarding the major considerations
implementation smooth with clear time accountability. at each stage:
3. Executive commitment
yy Develop requirements into a proposal.
yy Clearly mention the challenges and shortcomings of existing system
yy Mention the benefits associated with new HR software such as payroll
tracking, benefits administration, talent management
yy Agree initial budget
yy Obtain approval from stakeholders and senior management or relevant
decision makers to begin selection process
8. Compare price
yy From remaining vendors, request a detail price quotation inclusive of all cost
yy This helps when two or more vendors compete for your contract and can
provide you competitive pricing
yy Check details of quotation, and ensure it includes associated with license,
degree of customization, support services, learning, training, and other
charges.
yy Compare the all price quotations of each HR software
11. Implementation
yy Assign responsibility to HR software selection team created initially to be
involved in implementation
yy Hold pre implementation meeting to check original timeline and break it to
get more detail
yy Request HR software deployment plan from vendor and inquire about
implementation partner of HR vendor
yy Evaluate implementation timeline
B. QUESTIONS TO ASK DURING HR SOFTWARE yy What is the companys history and policy on
SELECTION software upgrades and enhancements?
Critical evaluation of an HR software vendors offering yy What are the training options pre- and post-
is an important activity throughout the whole selection installation phase?
process to ensure successful implementation. Figure 12
presents a list of standard questions that a vendor should yy What compliance issues and government
be asked are listed below to help in this regard15,16. After regulations does the company stay updated on?
shortlisting vendors, it is imperative to get references
of other regional customers and get their opinion and
recommendation of the vendor.
Questions to be asked to HR software
A second set of standard questions for referees is reference
presented below to provide a fruitful discussion. Beyond
these standard questions a customer should also engage yy Why did you decide to select this vendor?
in industry-specific and region-specific questions to
ensure no issue there are no surprises later. yy What other HR software did you consider and
evaluate?
15: http://blog.capterra.com/10-questions-to-ask-an-hr-software-reference/
16: ACCPAC report, How to choose a HR system
Major pain points in the HR software selection and purchase but also consider ancillary costs, such as
procurement process can be avoided if certain mistakes training, upgrades, and support costs in long run.
are not committed. Below is the compilation of what one
should consider and avoid: yy Buying HR software similar to competitor: Every
organization has unique challenges; therefore,
yy Detailed selection process: Traditionally, complex motivating the purchase of HR software simply
selection processes involve organizations issuing a because it is similar to a competitor may not be a
request for proposals (RFP) from vendors. HR software good decision.
selection is no different because it plays such a
major and critical role in the business. However, for yy Consider HR and ancillary departments: It is a poor
software, it is important to understand and define decision to consider the HR department to be the
business requirements as well as possible to ensure only stakeholder affected by HR software choice.
that software options can be evaluated accurately. The integrated nature of modern HR software means
that finance, operations, and IT should all have an
yy Lack of executive support: Senior management and important say in the final decision.
other key personnel must be involved, committed,
and kept up-to-date during the complete process
to avoid wasting resources and hampering existing C. HR SOFTWARE CHECKLIST
business processes.
A standard checklist to help quickly shortlist software
yy Failure to consider the total cost of ownership: vendors is useful to move the selection process forward
Organizations should not only consider the cost of as fast as possible. Table 8 provides a checklist to help
identify candidate HR software.
Chapter 7. Comparison
Summary
On comparing leading HR software solutions available features, but their lack of support is a significant risk. ADP
in Middle East for large enterprises, Oracle and SAP and Kronos may be suitable if the enterprise does not
offerings stand out due to strong support provided in need a large set of features or gold-level support. Table 9
the Middle East region. SumTotal can match in terms of gives a summary.
Chapter 8. Conclusion
The HR software market has evolved over the past Major market players such as Oracle and SAP continue
decade with enterprise level customers looking for to be frontrunners in understanding changing customer
more features and better return on investment. This needs and offering premium support, and a cloud
has led to HR software maturing into a Human Capital hosted solution. They are offering their feature-rich HCM
Management (HCM) and supporting a large set of suites to large enterprises such as Capgemini, Symantec
ancillary HR functions, increasing global support, and and Yahoo. They have the best support in the Middle East
reducing TCO through the SaaS delivery model. region. ADP and Kronos can offer a solution with fewer
features and support, and should be considered if they
meet an organizations requirements while offering a
more competitive price.
Appendix
Below are brief profiles of major HR software vendors offerings and Geo Learning for their learning portfolio.
that are active in the market. Major customers for the company include Capgemini,
KPMG, Air Canada, US Airways, and Pfizer.
1. SAP
SAP, founded in 1972, has product, consulting, 4. Workday
and training as their main core business areas. SAP Workday came into being in 2005. They provide financial
SuccessFactors is their subsidiary, which they acquired and HCM solutions based on the SaaS delivery model.
in 2011 to enter the cloud-based HR software market. Workday is present in North America, Europe, and is
They also acquired Ariba, an IT service company in 2012. expanding into the APAC and Middle East regions.
SuccessFactors provides HCM-based SaaS solution and Workday is forming strategic partnerships with channel
has presence in multiple geographical locations, such partners, HP being one of them. Their major customers
as North America, APAC, and Europe, and it is rapidly include Aviva, Yahoo, and TripAdvisor.
expanding into Middle Eastern and African region. Key
clients of SAP SuccessFactors include AMD, Bechtel, 5. Ultimate Software
Nissan, Cisco, Walmart, and eBay. Ultimate Software was founded in 1990. They provide
HR software solutions to customers worldwide, but
2. Oracle their primary presence is in North America and Europe.
Oracle, founded in 1977, specializes in products and In 2013, Ultimate Software acquired EmployTouch Inc., a
solutions in computer hardware systems, enterprise tablet-based solution for time and labor data collection.
software products, particularly, in database management Their major customers include Culligan International,
systems. Oracle has been one of the major ERP solutions Subway, and Adobe.
providers worldwide and has a massive partner network.
Major Oracle acquisitions in the HR software industry 6. ADP
include PeopleSoft and Taleo. Oracle has presence in ADP was founded in 1949. ADP provides business process
North America, EMEA, and APAC region. Major Oracle outsourcing solution and has presence in North America,
customers in the HR software industry include Toshiba EMEA, and APAC region. ADP acquired Payroll S.A. to
Medical systems, Dell, First Data, Nationwide, Elizabeth strengthen their HR software portfolio. Their customers
Arden, and Deutsche Bank. include Tetra Pak, Qualcomm, and Credit Suisse.