Worldwide Human Capital Management and Payroll Applications Software Market Shares, 2023: AI Drives Changes in the Landscape

The IDC study for worldwide HCM and payroll applications examines the two markets and their combined effect for the 2021-2023 period. "The age of EX transformation is here as organizations remain challenged to align with the market for talent," says Zachary Chertok, research manager for Employee Experience in IDC. "The market for HCM and payroll software continues to grow driven by global talent mobility, decline in talent acquisition certainty, and CEO demand for more adaptable and responsive business models that include continuous workforce planning and skilling." "The age of EX transformation is also driving up spend for HCM applications. Meanwhile, geographic talent mobility is elevating talent risk and demand for new payroll and compliance models. In response, the market for HCM applications and payroll is shifting in pace with advances in AI and global demand, becoming more democratized and reflective of new capabilities markets and talent risk management. At the same time, inside organizations, a metamorphosis is taking place rooted in employee listening insights as leadership teams experiment with and embrace AI behavioral modeling frameworks to personalize employee resource delivery and performance enablement inside and outside the HR remit. As new business transformation frameworks take root, HR stakeholders are evaluating from a wider array of new vendors in support of their expanding and shifting HR and payroll management needs and dependencies," adds Chertok.