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Should you take your Human Capital Management to the cloud?

The marketplace for Human Capital Management (HCM) solutions has seen an extraordinary amount of acquisition and consolidation activity in the past six months. The activity related to cloud-based HCM solutions for Life Sciences companies is far outpacing any other application of cloud-based technologies. Earlier this year SAP spent $3.4 billion to purchase SuccessFactors. Not to be left behind, Oracle jumped into the fray two weeks later by spending $1.9 billion to acquire HCM solution provider Taleo. Some say that started the frenzy with its purchase in December of 2011 of cloud-based HCM performance management solution Rypple.

And as a backdrop to this activity, there is an impressive march forward by cloud-based HCM provider Workday. In a recent Towers-Watson survey, 444 organizations responded to detailed questions about their HCM solutions.1 Of those organizations planning to implement a new HCM solution, 22 percent are planning to implement an SAP HCM solution. However, a stunning 18 percent are planning to implement a Workday solution.

With the highly dynamic solution landscape for HCM, questions abound. Should Life Sciences companies implement an on-premise SAP HCM solution? Should we continue to invest in on-premise SAP HCM solution? Should we investigate cloud-based solutions like Workday? What can we expect from SAP’s purchase of SuccessFactors? How do I maximize my company’s success while minimizing the risk we face during these volatile times?