Trends Report

HR/HCM Applications 2008: Best-Of-Breed Solutions Make A Comeback

January 7th, 2008
With contributors:
Sharyn Leaver , Zach Thomas , Claire Schooley , Elisse Gaynor , Meghan Donnelly


A broad range of options exist for human resources/human capital management (HR/HCM) solutions, usually building on a core system of record that is supplemented by best-of-breed solutions and outsourced services. The large enterprise resource planning (ERP) vendors, SAP and Oracle, continue to strive for adoption across a broad range of HR/HCM but are used primarily for the core transactional modules (i.e., personnel, benefits, and payroll). Best-of-breed solutions in performance management, compensation, learning management, recruitment, and other areas see better traction outside of the core HR system, with software-as-a-service (SaaS) rapidly gaining in all market segments. Consolidation is ever-present as solution providers seek greater critical mass and breadth. Forrester expects that the HR/HCM market, currently at $5.9 billion in license, maintenance, and subscriptions, will grow at a 9% rate through 2011, with the highest growth coming in performance and compensation solutions.

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