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    May2014,IDC#248745

    Market Analysis

    Worldwide and U.S. Human Capital Management

    Applications 20142018 Forecast

    LisaRowan

    IDC OPINION

    Thehumancapitalmanagement(HCM)marketremainedstrongin2013, butwithgrowththat

    moderated abitfromprioryear-over-yeargrowth.Therewascontinuedinterestinfirst-timepurchases

    ofnewsolutionsandreplacementsofagingcoresystems.Growthremainedinornear doubledigitsin

    theAmericasandEMEA regionsin2013, whilein Asia/Pacific, spendingdeclined. Further:

    Worldwiderevenueforthehumancapitalmanagementapplicationsmarketwas$10.4 billionin2013,representinggrowthof9.1%over2012.Theworldwidemarketisforecasttoreach$15.4billionin2018,growingataCAGRof8.2%.

    Ofthemajorregions,EMEA showedthehighestgrowthin2013(12.2%), followedbytheAmericas(9.7%)andAsia/Pacific(includingJapan)(-5.4%). Outto2018,theAmericasregionpoststhehighestforecastCAGRat8.4%,followedbyEMEAat8%andAsia/Pacific(includingJapan)at6.8%.

    Interestandinvestmentinhumancapitalmanagementsolutionscontinuetobestrong,outpacingmany otherapplicationmarkets. Themarket forHCMsolutionsisahighlycompetitiveone.Toremaincompetitive,suppliersareurgedtoconsiderfocusingonemployeeexperiencethroughthedeliveryofintuitiveuserinterfacesandeffectiveuseofsocialand

    mobiletechnologies.

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    Workforce Management

    Workforcemanagementapplicationsaredesignedtoautomatethedeploymentoftheworkforcethroughworkloadplanning,scheduling,timeandattendancetracking,resourcemanagement,andrulesandcompliancemanagement.Increasingly,workforcemanagementapplicationsarebeingintegratedintocustomerrelationshipmanagementapplicationsinacontactcenterenvironment.

    Recruiting

    Recruitingapplicationsaredesignedtoautomatetherecruitmentprocessthrough sourcing, bettertrackingofapplicants,screeningandskillsassessment,profilingandresumeprocessing,andidentifyingtalent insideoroutsidetheorganization.

    Learning Management

    Learningmanagementapplicationsaredesignedtoautomatethedevelopment,tracking,anddeliveryoflearningcontentandexperiencestoemployeeswiththegoalofimprovingemployeeskillsandproductivity.Learningcontentrangesfromtraditionalclassroomtrainingtoonlinelearningobjectsto

    mentoring.Learningmanagementisincreasinglyintegratedwithemployeeperformancemanagementtoprescribedevelopmentactivitiestoameliorateskillsgapsorgapsinperformance.

    Workforce Performance Management

    Workforceperformancemanagementapplicationsaredesignedtoautomatetheaggregationanddeliveryofinformationpertinenttothelinkingofjobrolesandthemissionandgoalsoftheorganization.Morespecifically,thesystemallowsuserstoautomatetheperformancereviewprocessbyusingmechanismssuch astrainingandkeyperformanceindicators(KPIs)toconstantlytrackandmonitortheprogressofanindividualemployee,workteam,anddivision.

    Compensation Management

    Compensationmanagementapplicationsaredesignedtoautomatetheprocessofplanningandadministeringworkforcecompensation, providingbothcompensationadministratorsandmanagerstoolstorationalizeandconfersalaryactions.Thiscategoryalsoincludesincentivemanagement,whichinvolvescashandnoncashincentivestoemployees,partners,andexternalusersthroughadvancedmodeling,reporting,andbuilt-ininterfacingtopayrollaccountingsystems.

    SITUATION OVERVIEW

    The Human Capital Management Applications Market in 2013

    ThemarketforHCMapplicationsgrewin2013by9.1%toreach$10.4 billionworldwide.Growthwaslowerthanthegrowthin 20112012butstillstrong, spurredbycontinuedinterestandattentiontotalentmanagementaswellasadesiretomovetocloudcomputingtolowercostsandITcomplexity.

    Ananalysisofthehumancapitalmanagementapplications marketin2013,includingvendorrevenueandshares,willbe publishedinWorldwideHumanCapitalManagementApplications2013VendorShares:TotalMarket,CoreHR,WorkforceManagement,Recruiting,LearningManagement,

    PerformanceManagement,andCompensationManagement(IDC#248742,forthcoming).

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    FUTURE OUTLOOK

    Forecast and Assumptions

    Human Capital Management Applications Forecast by Region,

    20142018

    IDC'sestimateofgrowthinspendinginthehumancapitalmanagementapplications marketthrough

    2018 ispresentedinTable1.Theworldwidemarketisforecasttoreach$15.4billionin2018,growing

    ataCAGRof8.2%.

    IDCanalystsaroundtheglobesuppliedregionalinputandinsightintothehumancapitalmanagement

    applicationsmarketforecast.Theworldwideforecastistheaggregationoftheregionaldataincludedin

    Table1.

    Ofthemajorregions,theEMEA showedthehighestgrowthin2013(12.2%), followedbytheAmericas

    (9.7%)andAsia/Pacific(includingJapan)(-5.4%). Outto2018,theAmericasregionpoststhehighest

    forecastCAGRat8.4%,followedbyEMEAat8%andAsia/Pacific(includingJapan)at6.8%.

    Manyfactorsareplayingintothedriveinhumancapitalspendingin WesternEuropeand the

    Americas.Inparticular,theU.S.market,whichaccountsforthemajorityoftheAmericasrevenue,

    showsparticularlyrigorousspending,withmuchinvestmentinreplacingoldertechnologywithSaaS-

    basedsolutionsandfirst-timepurchasesofnewer talentmanagement solutions.

    TABLE 1

    Worldwide Human Capital Management Applications Revenue by Region,20132018 ($M)

    2013 2014 2015 2016 2017 2018

    2013

    Share

    (%)

    2018

    Share

    (%)

    20132018

    CAGR (%)

    Americas 6,561.9 7,121.4 7,736.2 8,396.5 9,089.7 9,833.0 63.3 64.0 8.4

    EMEA 3,007.9 3,316.0 3,573.9 3,843.6 4,127.4 4,419.9 29.0 28.8 8.0

    Asia/Pacific

    (including Japan)

    792.4 828.4 888.3 953.1 1,023.1 1,099.9 7.6 7.2 6.8

    Total 10,362.1 11,265.8 12,198.5 13,193.2 14,240.3 15,352.8 100.0 100.0 8.2

    Growth (%) 9.1 8.7 8.3 8.2 7.9 7.8

    Note:SeeTable4fortop3assumptionsandTable5forkeyforecastassumptions.

    Source:IDC,2014

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    Human Capital Management Applications Forecast by Segment,20142018

    InterestinunderstandinghowthevarioussegmentsofHCMfitintothewholeisontherise.Table2

    providesabreakdownofworldwideapplication spendingin2013 andafive-yearforecastbythesix

    majorsegmentsinHCM coreHR,workforcemanagement,recruiting,learning,performance,and

    compensation.Table3shows2013 spendingandafive-yearforecastforthesixsegmentsfortheUnitedStates.

    Forvendorshares,refertoWorldwideHumanCapitalManagementApplications2013VendorShares:

    TotalMarket,CoreHR,WorkforceManagement,Recruiting,LearningManagement,Performance

    Management,andCompensationManagement(IDC#248742,forthcoming).

    TABLE 2

    Worldwide Human Capital Management Applications Revenue by Segment,

    20132018 ($M)

    2013 2014 2015 2016 2017 2018

    20132018

    CAGR (%)

    Core HR 5,232.9 5,677.9 6,135.8 6,623.0 7,148.6 7,691.7 8.0

    Workforce management 1,575.0 1,701.1 1,829.8 1,965.8 2,107.6 2,256.9 7.5

    Recruiting 1,450.7 1,565.9 1,683.4 1,807.5 1,936.7 2,088.0 7.6

    Learning 829.0 912.5 1,000.3 1,095.0 1,196.2 1,297.3 9.4

    Performance 797.9 878.7 963.7 1,055.5 1,153.5 1,251.3 9.4

    Compensation 476.7 529.5 585.5 646.5 697.8 767.6 10.0

    Total 10,362.1 11,265.8 12,198.5 13,193.2 14,240.3 15,352.8 8.2

    Note:SeeTable4fortop3assumptionsandTable5forkeyforecastassumptions.

    Source:IDC,2014

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    TABLE 3

    U.S. Human Capital Management Applications Revenue by Segment,20132018 ($M)

    2013 2014 2015 2016 2017 2018

    20132018

    CAGR (%)

    Core HR 2,995.0 3,243.1 3,502.1 3,774.8 4,069.2 4,369.7 7.8

    Workforce management 901.5 971.7 1,044.4 1,120.4 1,199.7 1,282.1 7.3

    Recruiting 830.3 894.4 960.8 1,030.2 1,102.4 1,186.2 7.4

    Learning 474.5 521.2 570.9 624.1 680.9 737.0 9.2

    Performance 456.7 501.9 550.0 601.6 656.6 710.8 9.3

    Compensation 272.8 302.4 334.2 368.5 397.2 436.1 9.8

    Total 5,930.7 6,434.8 6,962.4 7,519.4 8,106.0 8,722.0 8.0

    Note:SeeTable4fortop3assumptionsandTable5forkeyforecastassumptions.

    Source:IDC,2014

    WorldwideThefastest-growingsegmentiscompensationmanagement, whichisalsothenewestandsmallest in

    termsofspending.Spendingoncompensationmanagementapplicationswas$477millionin2013

    andis slatedtoreach$768millionin2018,aCAGRof10%.Theslowestgrowingsegmentis

    workforcemanagement.Workforcemanagementisamaturemarketwithrevenueof$1.6billionin

    2013 andisforecastto growto$2.3billionin2018,aCAGRof7.5%.

    United States

    SegmentationremainsconsistentintheU.S.market,whilegrowthratesareslightlylower acrossall

    segmentsthanforworldwide.CoreHRisthelargestyetslower-growingmarket,whileperformance

    andcompensationmanagementwillgrowthefastestandarethenewestandsmallestintermsof

    spending.

    Assumptions

    Table4showsthetop3assumptionsandTable5showsthekeyforecastassumptionsunderlyingthis

    worldwideandU.S.humancapitalmanagementapplicationsforecast.

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    TABLE 4

    Top 3 Assumptions for the Worldwide and U.S. Human Capital ManagementApplications Market, 20142018

    Market Force IDC Assumption Significance

    Changes to This

    Assumption That

    Could Affect Current

    Forecast Comments

    Economy The global economy was

    sluggish in 2013, with volatility

    in emerging markets and

    weaker growth in mature

    economies. The U.S.

    government shutdown

    dragged on the GDP in the

    fourth quarter, and the

    recoveries in Europe andJapan appeared to lose some

    steam. China recorded its

    slowest rate of growth in 14

    years. 2014 will see stronger

    growth in mature economies

    including the United States,

    but emerging markets are

    vulnerable to capital flight and

    will be volatile again.

    The economy drives

    job retention and job

    growth. Continuing

    global strain will

    likely impact job

    growth.

    Should the

    economy

    deteriorate or GDP

    targets not be hit,

    employment may

    not rebound,

    causing HR-related

    spending to

    stagnate or retract.

    Current economic

    conditions vary

    across the major

    geographies, so

    what may be an

    accelerator in one

    region may prove

    an inhibitor in other

    regions.

    Unemployment/

    job creation

    Unemployment worldwide is

    still hovering at high levels,

    but most regions will see

    gradual declines in their

    jobless rates over the next two

    years. In the United States,

    unemployment has dropped

    below 7% and the pace of job

    creation seems to have

    improved slightly but remains

    tepid by historical standards.

    Unemployment continued to

    rise in some countries in

    Europe in 2013, partly

    because of public sector job

    cuts related to austerity

    measures, but is expected to

    turn a corner by the end of

    2014.

    Many HR solution

    segments are

    directly related to

    the size of the

    workforce and

    speed of job

    creation. Therefore,

    employment is the

    most important

    factor impacting

    HCM solution

    spending.

    Should employment

    rebound more

    rapidly than

    anticipated, certain

    HR solution sectors

    may see stronger

    growth than

    forecast.

    Conversely, if

    unemployment

    stays at current

    levels, forecast

    growth may not be

    realized.

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    TABLE 4

    Top 3 Assumptions for the Worldwide and U.S. Human Capital ManagementApplications Market, 20142018

    Market Force IDC Assumption Significance

    Changes to This

    Assumption That

    Could Affect Current

    Forecast Comments

    Cloud The key advantage to cloud

    services should be the ability

    of IT organizations to shift IT

    resources from maintenance

    to new initiatives. This in turn

    could lead to new business

    revenue and competitiveness

    as well as create new

    opportunities for IT vendors inSMB and emerging markets.

    The benefits may be offset to

    some extent by

    cannibalization in the short

    term, resulting in shorter

    service engagements, price

    model disruption, and some

    hardware commoditization,

    but a strong economy would

    see most organizations shift

    resources to new IT

    development and adoption

    areas in the long term. We

    see cloud adoption as an ITspending driver overall,

    despite these cannibalization

    effects in the next two to three

    years.

    The cloud delivery

    model is disrupting

    the market for

    services and

    inhibiting purchase

    of on-premise

    solutions, which

    require more

    lengthy and costlytransformation

    services. Also,

    cloud inhibits the

    adoption of some

    HR process and

    BPO services.

    A strong push to

    cloud may

    negatively impact

    spending in HR

    solutions in the

    short term as the

    balance will shift

    from alleviating the

    burden of highlycustomized on-

    premise solutions to

    less complex

    engagements.

    Cloud is

    accelerating the

    number of new

    implementations but

    has the longer-term

    impact of lowering

    engagement value.

    Note:TheseassumptionsupdatethosefoundinWorldwideandU.S.HumanCapitalManagementApplications20132017

    Forecast:TheCloudSpursContinuedGrowth(IDC#241032,May2013).

    Source:IDC,2014

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    TABLE 5

    Key Forecast Assumptions for the Worldwide and U.S. Human CapitalManagement Applications Market, 20142018

    Market Force IDC Assumption Impact

    Accelerator/

    Inhibitor/

    Neutral

    Certainty of

    Assumption

    Macroeconomics

    Economy The global economy was sluggish

    in 2013, with volatility in emerging

    markets and weaker growth in

    mature economies. The U.S.

    government shutdown dragged

    on the GDP in the fourth quarter,

    and the recoveries in Europe and

    Japan appeared to lose somesteam. China recorded its slowest

    rate of growth in 14 years. 2014

    will see stronger growth in mature

    economies including the United

    States, but emerging markets are

    vulnerable to capital flight and will

    be volatile again.

    High.A down economy

    affects business and

    consumer confidence, the

    availability of credit and

    private investment, and

    internal funding. A recession

    would cause businesses to

    delay IT upgrades and somenew projects; a rising

    economy does the opposite.

    Unemployment/job

    creation

    Unemployment worldwide is still

    hovering at high levels, but most

    regions will see gradual declines

    in their jobless rates over the next

    two years. In the United States,

    unemployment has dropped

    below 7% and the pace of job

    creation seems to have improved

    slightly but remains tepid by

    historical standards.

    Unemployment continued to rise

    in some countries in Europe in

    2013, partly because of public

    sector job cuts related to austerity

    measures, but is expected to turn

    a corner by the end of 2014.

    High. More employment

    drives more need for ICT

    spending and is a lagging

    indicator of economic

    recovery; job creation should

    be accompanied by a

    willingness to invest in other

    areas. The flip side is also

    true fewer employees

    means less IT spending

    and is an indicator of weak

    business confidence. It's also

    becoming clear that IT

    spending is, in some cases, a

    substitution for labor costs.

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    TABLE 5

    Key Forecast Assumptions for the Worldwide and U.S. Human CapitalManagement Applications Market, 20142018

    Market Force IDC Assumption Impact

    Accelerator/

    Inhibitor/

    Neutral

    Certainty of

    Assumption

    Cloud The key advantage to cloud

    services should be the ability of

    IT organizations to shift IT

    resources from maintenance to

    new initiatives. This in turn could

    lead to new business revenue

    and competitiveness as well as

    create new opportunities for IT

    vendors in SMB and emerging

    markets. The benefits may beoffset to some extent by

    cannibalization in the short term,

    resulting in shorter service

    engagements, price model

    disruption, and some hardware

    commoditization, but a strong

    economy would see most

    organizations shift resources to

    new IT development and

    adoption areas in the long term.

    We see cloud adoption as an IT

    spending driver overall, despite

    these cannibalization effects in

    the next two to three years.

    High. Key advantage to cloud

    services should be the ability

    of IT organizations to shift IT

    resources from maintenance

    to new initiatives. This in turn

    could lead to new business

    revenue and competitiveness

    as well as create new

    opportunities for IT vendors in

    SMB and emerging markets.The short-term benefits may

    be offset to some extent in

    the long term by shorter

    service engagements, price

    model disruption, and some

    hardware commoditization,

    but a strong economy would

    see most organizations shift

    resources to new IT

    development and adoption

    areas.

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    TABLE 5

    Key Forecast Assumptions for the Worldwide and U.S. Human CapitalManagement Applications Market, 20142018

    Market Force IDC Assumption Impact

    Accelerator/

    Inhibitor/

    Neutral

    Certainty of

    Assumption

    Convergence Convergence is a complex

    phenomenon working at many

    levels: convergence of the

    telephone network and the

    Internet, communications and IT

    technologies, consumer and

    enterprise technologies, and even

    storage, routing, and processing

    in the datacenter. Of these,

    perhaps the most overarching isthe convergence of voice, video,

    and data communications. This

    convergence is a permanent

    phenomenon and will pick up

    pace as the decade wears on.

    One measure is that IDC

    recorded 1.9 billion users on the

    Internet and 3 billion users of the

    phone network by the end of

    2012. The overlap will be

    significant.

    Moderate. Convergence will

    drive new competitive

    dynamics, offer new

    applications and functions to

    customers, and strain the

    legal and regulatory systems.

    It will also drive increased ICT

    spending.

    Distribution of

    talent

    The swing to emerging

    geographies is evident. The

    number of scientists and

    engineers in the United States

    and Western Europe is falling

    compared with the number of

    scientists and engineers in China

    and India, while growth in the

    number of IT-related employees

    in those countries is three times

    the world average. Recent

    volatility in emerging markets

    may disrupt this pattern in the

    short term, but we expect it to

    continue in the medium term and

    the long term.

    Moderate. The migration will

    increase the overhead costs

    of finding, recruiting, and

    managing talent from global

    pools. It should, however,

    also lower costs and may

    even lead to more innovation.

    Legend: very low, low,moderate, high, very high

    Note:TheseassumptionsupdatethosefoundinWorldwideandU.S.HumanCapitalManagementApplications20132017

    Forecast:TheCloudSpursContinuedGrowth(IDC#241032,May2013).

    Source:IDC,2014

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    FIGURE 1

    Worldwide Human Capital Management Applications Revenue, 20092018:Comparison of May 2013 and May 2014 Forecasts

    Source:IDC,2014

    ESSENTIAL GUIDANCE

    Interestandinvestmentinhumancapitalmanagementsolutionscontinuetobestrong,outpacingmany otherapplicationmarkets. Suppliersareurgedtoconsiderthefollowing toachievecompetitive

    advantage:

    Focus on employee experience. Makewhatyouoffer andhowyouofferitshine foreveryone,notjusttheHRbuyingteam.OneofHR'sperennialchallengesistogetmanagersandemployeestouseHCM systems.Toovercomethechallenge,HCM systemsneedtobeintuitivetousewhileofferingsomevaluetothe user "what'sinitforthem." Mobileandsocialwillhelpinovercomingthischallenge.

    Deliver it to mobile. Mobiledevicesareeverywhere.Industryestimatesrangefrom 50%to80% forsmartphone penetration intheUnitedStates, andtabletownershipiscatchingup.AccordingtoFastCompany,79%ofsmartphoneusershavetheirphonenexttothemforall

    buttwo hoursoftheworkingday.YettheHRfunctionhasmadefewmovestotakeadvantageofwhatisbecomingtheprimarywayof reachingtheworkforce.NowisthetimeforHRtostepupandtakeanactiveroleinmobile enablementacrosstheHRfunctionwiththeirsuppliers'help.

    ake it social.HRexecutivesarenotyetseeingthefullimportsocialtechnologycanoffertoHRandtalentmanagement.Also,HRisnotyetleadingsocialcollaborationefforts.Thereare

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    2014IDC #248745 13

    glimmers of a coming shift in attitudes where HR executives are nowseeing somesituationswhere social has its place and plan to become more involved in socialcollaboration.SuppliersneedtogetinfrontofHRbuyerswithcompellingusecases(ofwhichtherearemany).

    LEARN MORE

    Related Research

    IDC'sSoftwareTaxonomy,2013(IDC#241527,June2013)

    WorldwideandU.S.HumanCapitalManagementApplications20132017Forecast:The

    CloudSpursContinuedGrowth(IDC#241032,May2013)

    WorldwideHumanCapitalManagementApplications2012VendorShares:TotalMarket,Core

    HR,WorkforceManagement,Recruiting,LearningManagement,PerformanceManagement,

    andCompensationManagement(IDC#240959,May2013)

    ThePromiseofIntegratedTalentManagement:ARealityCheck(IDC#243704,October2013)

    2013HumanCapitalManagementSurvey:HCMBuyerActionsandPlans(IDC#243110,September2013)

    Methodology

    TheIDCsoftwaremarketsizingandforecastsarepresentedintermsofcommercialsoftwarerevenue.

    IDCusesthetermcommercialsoftwaretodistinguishcommerciallyavailablesoftwarefromcustom

    software.Commercialsoftwareisprogramsorcodesetsofanytypecommerciallyavailablethrough

    sale,lease,rental,orasaservice.Commercialsoftwarerevenuetypicallyincludesfeesforinitialand

    continuedright-to-usecommercialsoftwarelicenses.Thesefeesmayinclude,aspartofthelicense

    contract,accesstoproductsupportand/orotherservicesthatareinseparablefromtheright-to-use

    licensefeestructure,orthissupportmaybepricedseparately.Upgradesmaybeincludedinthe

    continuingrightofuseormaybepricedseparately.AllofthesearecountedbyIDCascommercialsoftwarerevenue.

    Commercialsoftwarerevenueexcludesservicerevenuederivedfromtraining,consulting,andsystem

    integrationthatisseparate(orunbundled)fromtheright-to-uselicensebutdoesincludetheimplicit

    valueofsoftwareincluded inaservicethatofferssoftwarefunctionalitybyadifferentpricingscheme.It

    isthetotalcommercialsoftwarerevenuethatisfurtherallocatedtomarkets,geographicareas,and

    operatingenvironments.Theworldwidesoftwaremarketincludesallcommercialsoftwarerevenue

    acrossallfunctionalmarketsormarketaggregations.Forfurtherdetails,seeIDC'sSoftware

    Taxonomy,2013(IDC#241527,June2013).

    ThesoftwarerevenueforecastspresentedinthisstudyrepresentIDC'sbestestimatesandprojectionsbasedonthefollowing:

    Top-downforecastgrowthratesbyIDCworldwidemarketanalysts

    CurrentU.S.dollarexchangeratesasof4Q13

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    Bottom-up/company-leveldatacollectionforcalendaryear2013beganinJanuary2014within-depth

    vendorsurveysandanalysistodevelopdetailed2013companymodelsbymarket,geographicregion,

    andoperatingenvironment.Thisactivitywillformthebasisofvendorshare,updatedforecast,and

    competitiveanalysisstudiesthatwillbepublishedlaterintheyear.

    Historical Market Values and Exchange Rates

    HistoricalmarketvaluespresentedhereareaspublishedinpriorIDCdocumentsbasedonthemarket

    taxonomiesandcurrentU.S.dollarexchangeratesexistingatthetimethedatawasoriginally

    published.FormarketsotherthantheUnitedStates,theseas-publishedvaluesarethereforebasedon

    adifferentexchangerateeachyear.

    Becausemanyindividualcountriescontributetoregionaltotals,itisdifficulttogiveprecisedifferences

    betweencurrentandconstantcurrencyvaluesinthisdocument.However,thescaleofthedifference

    canbeunderstoodfromthemovementoftheU.S.dollaragainstmajorregionalcurrencies.Customers

    shouldconsidermultiplyingregionalhistoricalmarketvaluesforeachyearbythechangeinvalueof

    theU.S.dollaragainstrepresentativecurrenciesin theregionasshowninTable7.Thiswillprovidea

    betterapproximationoflocalmarketgrowth.Forexample,torestate2012eurozonevaluesinto2013dollars,onewouldadjustthe2012valueupwardby3%(becausethedollarweakenedslightlyagainst

    theeuroin2013).

    PleaserefertoIDC'sregionalresearchstudiescontaininghistoricalforecastsformultiplecountriesfor

    moreaccurateregionalgrowthinlocalcurrencies.Notethatthisdiscussionappliesonlytohistorical

    valuespriorto2013.2013andallfutureyearsareforecastataconstantexchangerate.

    TABLE 7

    Exchange Rates, 20062013 (%)

    2006 2007 2008 2009 2010 2011 2012 2013

    Euro 106 97 91 95 100 95 103 100

    Pound 85 78 85 100 101 97 99 100

    Yen 119 121 106 96 90 82 82 100

    Canadian dollar 110 104 104 111 100 96 97 100

    Mexican peso 86 86 87 106 99 97 103 100

    Brazilian real 101 90 85 93 82 77 90 100

    Note:Torestateprior-yearU.S.dollars,multiplyhistoricalmarketvaluesbythepercentageindicatedinthetable.

    Source:IDC,January2014

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    Synopsis

    ThisIDCstudyprovidesasizingofthehumancapitalmanagement(HCM)applicationsmarketin2013

    alongwitha20142018 forecast.Historicalandforecastrevenuedataisshownforthetotalworldwide

    marketbygeographicregionandbyHCMsegmentandfortheUnitedStatesbyHCMsegment.

    "Interestandinvestmentinhumancapitalmanagementsolutionscontinuetobestrong, outpacing

    manyotherapplicationmarkets," saysLisaRowan,researchvicepresident,HR,TalentandLearning

    StrategiesforIDC. "ThemarketforHCMsolutionsisahighlycompetitiveone.Toremaincompetitive,

    suppliersareurgedtoconsiderfocusingonemployeeexperiencethroughthedeliveryofintuitiveuser

    interfacesandeffectiveuseofsocialandmobiletechnologies."

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