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April 7, 2014 – Bersin by Deloitte today announced new research showing that
after years of recessionary budget cuts, most (90 percent) organizations
surveyed indicate that they plan to replace their Human Capital management
(HCM) software within the next 18 months. Bersin by Deloitte, a leading
research and consulting firm empowering Human Resource (HR) organizations to
drive bottom-line impact, included the findings in its new research report, Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead. The research is available now to
WhatWorks® members via BersinInsights™, the personalized and integrated member
Management is the term applied to all large scale HR-related platform software
– Talent Management Systems, Learning Management Systems, and Human Resource
Information Systems (HRISs), which serve as the core HR systems of record.
Summarized in a complimentary WhatWorks® brief, the research shows that more
than twice the percentage (at 39 percent) of global organizations are planning
to replace their HRISs than were a year ago, when just 14 percent of global
organizations had such plans. Singling out performance management and hiring
management systems that cannot be integrated as the ripest for replacement,
organizations studied indicated they have plans to acquire or replace both
talent management and HRISs in the next 18 months.
“The top themes
for software acquisition remain remarkably consistent,” said Katherine Jones,
vice president, HCM Technology Research, Bersin by Deloitte, Deloitte Consulting
LLP. “Seventy-four percent of respondents in the market for a replacement HCM
system sought to improve their users’ experience, recognizing that new, better
and faster technologies are available in the market today. The ability to
integrate the entire range of HCM software to improve access to analytics and
decision-making were also key drivers.”
The research is
based on a study of 134 senior corporate users of HRIS software, talent
management suites and standalone talent management software applications. Half
(50 percent) of respondent organizations have $1 billion or more in annual
revenue. The data was collected by working with Human Resource Executive magazine. The study looked at many different factors, including the solutions
the respondents are using today (both their talent management and HRISs), the
length of time they have been using these solutions and the changes they intend
to make and have budgeted for in the year ahead.
buyers planning to replace or buy new software in 2014 differ somewhat
depending on the planned acquisition. The research revealed that:
The research also
found that cost ramifications as a driver are more important to HRIS/HRMS buyers
than to talent management system buyers. Global capabilities are among the top
five drivers for those moving from standalone applications to an integrated
suite. Customization is most important to those acquiring an integrated suite
for the first time.
In addition, the
study results showed that more than half (58 percent) of multinationals are
planning to replace their HRISs/HRMSs, and more than two-fifths (42 percent) of
national organizations plan to replace these systems.
to join Dr. Katherine Jones for her online webinar, Unleashing the HR Budget:Buying Trends for HR Investments at 2 p.m. Eastern on May 29, 2014.
in learning more about Bersin by Deloitte or its WhatWorks® membership may
email email@example.com or call 510-251-4400.
About Bersin by
Deloitte delivers research-based people strategies designed to help leaders and
their organizations in their efforts to deliver exceptional business
performance. Our WhatWorks® membership gives Fortune 1000 and Global 2000 HR
professionals the information and tools they need to design and implement
leading practice solutions, benchmark against others, develop their staff, and
select and implement systems. A piece of Bersin by Deloitte research is
downloaded on average approximately every minute during the business day. More
than 5,000 organizations worldwide use our research and consulting to guide
their HR, talent and learning strategies. For more information, please visit
http://www.deloitte.com/bersin or http://www.bersin.com.
As used in this
document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of
Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description
of the legal structure of Deloitte LLP and its subsidiaries. Certain services
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