The Forrester Wave™: Human Resource Management Systems, Q3 2006

Forrester evaluated human resource management systems (HRMS) vendors across 92 criteria for both the multinational enterprise market and the US midmarket. We found that SAP and Oracle (with its E-Business Suite and PeopleSoft products) were clear Leaders for multinational enterprises. For US-based companies with minimal international workforce requirements, Ultimate Software and Lawson were Leaders. A notable trend, particularly in the midmarket, is the increasing acceptance of software-as-a-service (SaaS), which is the primary delivery model for Ultimate Software, as well as for Strong Performers Automatic Data Processing (ADP), Ceridian, and Employease. Infor Global Solutions (Infor), Kronos, and Sage Software (Sage) are also Strong Performers in the US midmarket but offer primarily on-premise software solutions. Sage, with its Abra product, offers the most cost-effective software solution among the products evaluated for companies with fewer than 1,000 employees. In this relatively mature software category, customers should look for a solution that is compatible with their overall ERP strategy or opt for a SaaS mode of delivery for transactional needs, potentially supplemented by best-of-breed solutions for strategic HR processes.