European HCM Applications Forecast, 2023-2028

Description

This IDC Market Forecast provides an analysis and sizing of the European HCM and payroll management applications market for 2021-2023 and forecasts growth for the 2024-2028 period. The study segments the combined HCM and payroll management applications market in Europe by function (HCM and payroll), deployment model (SaaS and on-premises/other), and country and subregion (Western Europe and Central and Eastern Europe)."Looking forward, the HCM and payroll applications markets are set to maintain strong CAGRs, driven by several key developments. The integration of AI is having an impact, with tangible use cases that streamline HR processes, enhance overall efficiency, and enable a strategic shift in HR roles. This technological advancement aligns closely with the ongoing shift toward a skill-based economy, prompting organizations to redefine their approach to workforce skills management. Alongside this factor, the persistent challenge of recruitment continues to spur demand for software-enabled talent attraction. Together, these trends are shaping the dynamic market landscape, encouraging continuous investment and innovation." Ivan Oz, Senior Research Analyst in European HCM and payroll applications research at IDC.

Product Code: EUR150687224

IDC Market Forecast Figure

Executive Summary

Advice for Technology Suppliers

Develop a Road Map to HR Automation
Strategically Implement GenAI
Enhance Employee Experience Through Modern Payroll Solutions
Assist European Organizations in Gearing Up for the Skill-Based Economy
Measure the ROI of EX Investments
Address the Expectations of Gen Z and Millennials

Market Forecast

Market Context

Drivers and Inhibitors
- Drivers
  - GenAI in HCM Software is Becoming a Key Buyer Criterion
  - Acceleration of Globalization and Remote Work Continues to Shape HCM and Payroll Systems
  - Focus on the ROI of EX Initiatives
- Inhibitors
  - Economic Uncertainty
  - Skill Gaps in HR
Significant Market Developments
- No Doubt About It, GenAI Is a High-Potential Technology for the HCM Tech Space
- HR Automation Is a Key Focus for Buyers
- HR Is Breaking Out of Its Silo, Looking to Connect with IT and the Rest of the Organization
Changes from Prior Forecast

Market Definition

Human Capital Management Applications
Core Human Resources Applications
Talent Management Applications
Talent Acquisition Applications (Recruiting)
Compensation Management Applications
Employee Performance Management Applications
Learning Management Applications
Workforce Management Applications
Payroll Management Applications

Methodology

Exchange Rates
Mergers and Acquisitions