Worldwide and U.S. Human Capital Management and Payroll Applications Forecast, 2024-2028

This IDC study discusses the human capital management (HCM) and payroll applications market for 2024-2028."Global markets for human capital management and payroll applications are showing strong growth, driven by rising demand for operational adaptability and organizational transformation. Organizations are increasingly prioritizing digital transformation to improve workforce management and operational efficiency, which is enhancing the role of the CHRO in meeting business objectives." - Sam Halwani, research vice president, Human Capital Management, IDCThe combined market for HCM and payroll applications adjusted for services impact is expected to grow from $39.8 billion in 2023 to $65.7 billion in 2028, with a CAGR of 10.5% (see Table 1). This robust growth is primarily driven by the adoption of public cloud services, propelled by advancements in artificial intelligence (AI) and GenAI, which are accelerating the transition from traditional on-premises systems to more flexible cloud infrastructures. Hybrid cloud solutions drive this expansion by combining public cloud scalability with private cloud security. This approach ensures compliance and operational efficiency, allowing organizations to securely manage sensitive data while leveraging cloud benefits. AI and GenAI further enhance these efficiencies, improving payroll processes and compliance through advanced analytics and informed decision-making.