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View of HCM Players
The global HCM and HR management system segment is a mature space and also
an extremely competitive one. Whether the software caters to large Fortune 500
giants or mid-market and SMB firms, it is now part and parcel of any
enterprise-wide IT rollout.
According to an AMR research released in 2006, the HCM software
segment is expected to grow at 10%, and HCM and CRM are together the fastest
growing segments of the overall enterprise application market. The ERP software
sales, by comparison, would grow at a mere 3%.
If there is any indication of the importance of the HCM market,
one does not have to look beyond Oracle. The Redwood Shores-based company
invested billions of dollars to buy two major companies in the space-PeopleSoft
and JD Edwards, a few years ago. These acquisitions have placed Oracle
neck-in-neck in the race with SAP.
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HR Challenges in India |
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Creating a
high-performance culture
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Retaining talent
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Recruiting
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Moving from patriarchic,
hierarchical management to a more team-based, informal organizational
culture
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Linking training with
performance
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Compensating knowledge
workers
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Building interpersonal
relationships/managing conflict
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Going global
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Source: CEO survey
2006, by Aneeta Madhok, dean, Faculty of Management Studies, and
professor, Organizational Behavior and HR, at the Narsee Monjee Institute
of Management and Higher Studies. |
At the upper end of the HCM spectrum are the huge ERP companies
like SAP and Oracle to the lower end of the spectrum that is peppered with
mid-range enterprise software providers and small pure play HCM players, some of
whom have cultivated their own local markets.
According to AMR researchs HCM applications report 2005-2010,
Oracle was the leader in HCM space in revenue terms, overtaking SAP following
its PeopleSoft buy in 2004. In 2005, Oracle held 26% share of the HCM market
revenue while SAP garnered 23%. The distance is closing between the two fierce
rivals. Kronos is ranked behind the two and has 10% market share. The top three
vendors together notch up around 60% of the market. Some of the major
specialized players include Sage, Adrenalin eSystems, Meta4, Ultipro, Lawson,
and SuccessFactors. However, the market is big enough for a number of smaller HR
management players, some of which are making their mark by adding on innovative
feature rich and flexible solutions based on a low-cost, SaaS model aimed at the
mid-market and SMB segments. Not to be left behind, the ERP/HRMS giants that
follow a platform based licensing model have also started offering an
alternative option. SAP, for instance, offers Business ByDesign, an on-demand
solution for small businesses and midsize companies, that is currently available
in the US, Germany, the UK, France, and China.
The Indian Scenario
The Indian market is just starting to pick up. Until now, enterprises that
were used to traditional DOS-based or Microsoft Excel based HR systems are
moving into top gear to adopt end-to-end HR systems. Chetan Pathak, VP
Enterprise Solutions, Ramco Systems, traces the evolution. "In the last 15
years, many companies are moving away from traditional HR functions that were
only about personnel administration, leave policies, and compensation. This has
evolved into HCM that is used to tap the potential of every employee and ensure
that employees contribution and performance is aligned with the companys
goals. Very few organizations adopted this approach six-seven years ago." Page(s) 1 2 3
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