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Market research analysts at Technavio have predicted that the HCM software market in Germany will grow steadily at a CAGR of more than 5% by 2020. This market research analysis identifies the increasing demand for a unified solution for all HR functions as one of the primary growth factors for the human capital management software market. Designed primarily for compliance, software such as payroll software, applicant tracking software, and talent management software are rigid and hard to use and only make the recruiting process more complex to manage. As a result, managers usually use spreadsheets to make up for system shortcomings. Whereas, HCM software integrates, automates, and streamlines all processes, helps organizations to plan their future staffing needs, and also shares the information with other enterprise software such as enterprise resource planning (ERP). The software facilities the HR to partner with the recruitment team to locate and recruit the very best talent for their businesses using only a single system. As a result, there will a substantial increase in the demand for this HR software from several enterprises, subsequently augmenting the market’s growth prospects.
The adoption of advanced workforce analytics will be one of the major trends to gain traction in this market in the coming years. Workforce analytics is simply a set of analysis tools that integrate software and guiding metrics to perform statistical models on worker-related data and provide comprehensive workforce performance measurement. Workforce analytics predicts the probability of an employee's success, helps organizations in identifying the necessity for a new department or position, enhances the enterprise's organizational structure, and also helps the organization to recognize, inspire, and nurture its future leaders.
Characterized by the presence of several multinational HCM software companies, the market appears to be fragmented. The increasing demand for HCM software among large enterprises and SMEs has intensified the competition among vendors. Vendors in the market have started seeking opportunities to form high-value partnerships with large enterprises. This allows them to offer products that are affordable to customers of all sizes and in turn, also adds to intensifying the competition among vendors. In the next few years, the market will also witness the well-established HCM or HR software companies acquiring smaller vendors to expand their product portfolio and increase their market share, which also allows them to enter new markets.
The leading vendors in the market are -
The other prominent vendors in the market are CakeHR, Ceridian, Cezanne HR, Epicor, FinancialForce, IBM Kenexa, Infor, Kronos, Namely, Sage, Unmantis, and WebHR.
During 2015, the on-premises market segment accounted for about 78% of the total market shares and dominated the industry. In this deployment model, the software is purchased and installed on the user's server which is maintained by the organization’s IT personnel. This model allows enterprises to enjoy sufficient security in maintaining the employee data. Though this market segment will witness a decrease in its market shares during the next four years, it will continue its dominance in the HR software systems market throughout the forecast period.
This market study predicts that the large enterprises will be the major revenue contributor to the market throughout the next four years and also estimates the segment to account for about 59% of the total market shares by 2020. This mainly attributes to the early adoption of HCM software by large enterprises in the country as they do not have any budget constraints.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by deployment type
PART 07: Market segmentation by end-users
PART 08: Market segmentation by process
PART 09: Buying criteria
PART 10: Market drivers
PART 11: Impact of drivers
PART 12: Market challenges
PART 13: Impact of drivers and challenges
PART 14: Market trends
PART 15: Five forces model
PART 16: Vendor landscape
PART 17: Appendix
PART 18: Explore Technavio
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