London (UK), October 2023 - The 2023 Fosway 9-Grid™ has found that the cloud HR market bucks the trend of recession expectations, but that the promise of artificial intelligence is yet to fully deliver.
Fosway Group's latest analysis of the cloud-based HR systems market, the 2023 Fosway 9-Grid™ for Cloud HR, reveals an environment that is responding to the challenges of social, business, and digital transformation with a widespread embrace of cloud-based HR solutions. And while there are a handful of specialists new to the 9-Grid™ in this cycle, it is still the Suites that are benefitting most from a market that remains under pressure to consolidate.
The 2023 Fosway 9-Grid™ for Cloud HR also shows that, in what is arguably the most significant twelve months for public awareness of the potential of artificial intelligence, providers are rapidly integrating AI technology, but corporate customers have yet to come to terms with the challenges and opportunities of AI. Whilst vendors are adopting generative AI, few have delivered solutions of real substance, as HR tech continues to grapple with compliance, security, and privacy issues, as well as the cultural implications of widespread AI adoption.
This year's Fosway 9-Grid™ for Cloud HR also highlights the increasing disruption of corporate payroll, with a shift towards real-time payroll processing. The ability for workers to access their earned salary when they need it, not just weekly or monthly, has an impact on their financial wellbeing and also improves employee engagement - and potentially future talent retention.
"This year's 9-Grid™ report shows encouraging signs of corporate and market resilience," said Sven Elbert, Head of Analyst Services and lead analyst for the Fosway 9-Grid™ for Cloud HR. "The HCM Suites continue to consolidate their influence on the cloud HR systems market, but specialists increasingly enable a transformational impact in a diversified tech environment."
There are several reasons for this resilience: European businesses have increasingly embraced digital HR transformation, recognising the efficiency and cost-effectiveness of cloud-based HR solutions. The global shift towards hybrid work and the need for seamless collaboration and data access have amplified the need for innovation as well as a connected cloud-based ecosystem. In addition, Europe is continuing to grapple with a significant skills crisis, making investment in new solutions even more valuable.
"Cloud HR has always been a dynamic market space in which vendors of all sizes and specialisms operate," said David Wilson, CEO of Fosway Group. "It's going to be a crucial year ahead for the market, as we see ongoing concerns such as skills strategy vie for attention alongside transformative tech initiatives such as generative AI and low code/no code. Other areas, including payroll and strategic workforce planning, will also undergo significant change thanks to developments in cloud HR tech."
Fosway's David Wilson and Sven Elbert will take questions on the research in a live online "Ask the Analyst" session on 02 November.