HCM – gearing up for explosive growth
Global market research and consulting provider, Markets&Markets, recently released its annual overview of the global Human Capital Management (HCM) market – a report, which predicts a growth forecast of $19.8bn over the next five years.
The report’s findings show that demand for global HCM software has continued to grow rapidly across industry sectors (the report covers no less than 17), and geographic markets. And, with the continuing globalization of business, it’s no surprise that companies – both at enterprise and SME level – are turning their attention to modernizing their HR systems in a bid to gain better workforce insight and improve talent management practices.
HCM Catalysts & Contributors
Markets&Markets’ forecast to 2021 also highlights two key factors that are expected to drive HCM market growth over the coming years. According to the report, the rising demand for workforce planning and analytics will provide a significant growth source as multinationals look to gain better workforce insight and adopt a more analytical approach to HR.
It’s a finding echoed by other industry research houses, too. Survey data from Deloitte’s Global Human Capital Trends 2016 report highlights that ‘82% of HR respondents now cite people analytics as important or very important to business performance’. The application of people and workforce analytics can support a wide range of business challenges from employee engagement and performance, to resource planning and team productivity, and so its growing uptake across the HR landscape can only spell good news for business performance.
Citing the biggest geographical HCM contributors, Markets&Markets predicts that North America will be the global HCM market’s biggest contributing region between now and 2021. The reason? The high adoption of digital technologies across all major industry sectors will continue to support the growth of HCM solutions as business leaders look to implement more digital-led strategies to improve business functions’ output. While North America may be set to spearhead most HCM growth, the contributing role of emerging markets in Asia-Pacific, Latin America and the Middle East should not be underestimated given their “immense scope for the adoption of HCM solutions”.
HCM and the Cloud
I was pleased, too, to read that the incorporation of cloud services will be paramount in the HCM ecosystem. Having been a cloud-based global HCM provider since our inception in 2007, the Sage People team would be the first to agree that the future of HCM lies in cloud-based deployment, and we were equally delighted to see Sage People referenced as a ‘key innovator’ in Markets&Markets’ report.
The full Markets&Markets HCM Market and Global Forecast report is available for download here.
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