August 20 | 2015

Human Resource
Software Comparison
2015
A REVIEW OF HUMAN RESOURCE SOFTWARE
FOR LARGE ENTERPRISES IN THE MIDDLE EAST
HUMAN RESOURCE SOFTWARE COMPARISON 2015

Table of Contents

Executive Summary 4
Introduction 5
Chapter 1. HR Software Overview 6
a. HR Software Components 6
b. Business Delivery Model 7
c. Major HR Suite Vendors 8
d. Trends in HR Software Market 9
Chapter 2. HR Software Feature Comparison 11
a. On-premise HR Software 12
b. SaaS HR Software 12
Chapter 3. HR Software Price Comparison 14
Chapter 4. Support by HR Software Vendors 17
a. Global Support 17
b. Support in Middle East 18
Chapter 5. HR Software Integration 19
Chapter 6. Best Practices in HR Software Selection 20
a. HR Software Selection Process 20
b. Questions to Ask During HR Software Selection 24
c. HR Software Checklist 25
Chapter 7. Comparison Summary 26
Chapter 8. Conclusion 27
Appendix 28
a. SAP 28
b. Oracle 28
c. SkillSoft SumTotal 28
d. Workday 28
e. Ultimate Software 28
f. ADP 28
g. Kronos 28

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

List of Figures
Figure 1: Major components of HCM 6
Figure 2: Major HR software based on delivery model 7
Figure 3: Major HR software vendors 8
Figure 4: SaaS HR software vendor landscape 10
Figure 5: Talent management market growth 10
Figure 6: Pricing models 14
Figure 7: Perpetual license price ranges (in USD) 15
Figure 8: Subscription price ranges (in USD) 15
Figure 9: HR software selection process 20
Figure 10: HR software selection process steps 1-3 21
Figure 12: Questions for HR vendor and references 24

List of Tables
Table 1: On-premise comparison with on SaaS deployment 8
Table 2: Major features of each HCM component 11
Table 3: On-premise based major vendor features comparison 13
Table 4: SaaS based major vendor features comparison 13
Table 5: Software prices for core HR (in USD ) 16
Table 6: Comparison of global support from major HR software vendors 18
Table 7: Support comparison in Middle East 18
Table 8: HR software checklist 25
Table 9: Summary comparison of major HR software 26

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GAP BETWEEN EDUCATION SYSTEM AND LABOR MARKET IN SAUDI ARABIA

Executive Summary
Human Resource (HR) software companies globally are
enhancing their portfolio in order to support changing
customer needs. This report provides a comparative
analysis of the major HR software packages available on
the market for large enterprises in the Middle East.
This report covers:
This report entails all major areas that need consideration
before selecting a HR software and help in taking an
informed decision.
This report has been prepared on the basis of detailed
secondary research analysis.

yy Overview of the HR software industry

yy Breakdown of modern HR software features

yy Comparisons of HR software based on feature

support and price

yy Level of support provided by HR software vendors

(Global vs Middle East)

yy Best practices in HR software selection

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HUMAN RESOURCE SOFTWARE COMPARISON 2015
Introduction
Human Resource (HR) software empowers
organizational HR to streamline their functions from
benefit administration to managing employee payroll.
Increasingly, HR software is used to manage and grow
talent, attract and retain employees, and long-term
succession planning.
Varied HR software offerings exist in the market aimed
at different industries and organization sizes. In order
to support varying business needs, HR software has
transitioned from providing only core HR functions
to Human Capital Management (HCM) suites that
provide tools such as workforce management, talent
management, and recruitment, as well as core HR and
Payroll.
The growth of HR software into HCM stems from the
need for organizations to maintain competitiveness in
the employment market. The HR software industry is
enjoying outstanding growth and is expected to rise
from USD 9.2 billion in 2012 to USD 13.5 billion by 2017
at compounded annual growth rate of 8%.
A significant source of growth has been from new
vendors that have harnessed cloud computing to offer
HR software as a SaaS (software-as-a-service). Several
large enterprises have migrated to cloud-based HR
software including Symantec, Aviva, and Yahoo.
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Pricing of HR software continues to remain a dark art
with little data available publicly. Organizations are
recommended to acquire multiple quotations and
ensure vendors to compete aggressively for their
business. While the successful deployment of SaaS should
reduce TCO, but the increasing number of functions in
modern HR software may increase costs. To keep costs
under control, organizations should carefully analyze the
features offered by each vendor and integrate only those
their business requires.
Technical support continues to be strong from vendors
that focus on large enterprises. Global telephone
customer support, on-premise technical support,
training, and priority handling are available. However,
services vary from region to region and are subject to
rapid change. Integration with major ERP systems is
common, ensuring organizations can continue to use
their existing packages, or migrate away entirely.
Migrating to any new software package is a complex
task that should be undertaken with diligence. This
report provides notes on best practices for selecting an
HR software vendor, and ensuring smooth integration
of new HR software into an organizations systems and
business processes.
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Chapter 1. HR Software
Overview
A. HR SOFTWARE COMPONENTS

HR software industry has evolved over the years from

supporting simple task-based applications to providing
end-to-end HR functions.

Today, HR software consists of a broad set of components

to support changing business requirements and diverse
organizational processes. HR software is increasingly
identified as Human Capital Management (HCM) suites
to reflect the large number of features that have been
integrated over time. Figure 1 illustrates the major
components of HCM suites. HCM suites cover different
areas of functionalities ranging from core HR functions,
workforce management, benefits and administration,
talent acquisition, and succession planning to learning Figure 1: Major components of HCM
management.
HR software are available in
With increasing business complexities, customers standalone or bundled in
globally have customized their needs to manage their HCM suite for customers, as
human resource tasks. Their requirement for HR software per requirement
also vary based on their size, location, and industry.
Major components offered as
Large enterprise organizations (with 1,000+ employees)
part of HCM include:
prefer end-to-end HCM suites that cover core HR functions
along with functionalities such as talent and workforce Core HR and Payroll
management, while a start-up has limited functional Benefits Administration
requirements with employee payroll management Talent Management
being the major one. In general, organizations face stiff
Workforce Management
competition in hiring and retaining talent, and thus, there
is greater need for talent management and recruitment Learning and Development
functionality. Compensation management

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

B. BUSINESS DELIVERY MODEL themselves to improve their security infrastructure.

Today, many SaaS HR software suites offer better security
License-based, on-premise HR software deployment than most small, medium, and even large organizations
model has been dominant in the industry with could achieve in-house.
traditionally enterprise resource planning (ERP) vendors
such as Oracle and SAP active in providing HR software
to large organizations. Oracle provides multiple ERP-
based HR software, such as Oracle E-Business Suite,
Oracle PeopleSoft, and Oracle J.D. Edwards. SAP provides
SAP ERP HCM and Infor provides Lawson1 .

However, the emergence of cloud computing has

enabled HR software to be delivered via SaaS (software-
as-a-service). Figure 2 below provides snapshot of
major HR software available in on-premise and SaaS HR
deployment model. Large organizations have begun
to migrate to their HR requirements to the cloud.
Leading companies, such as AMD, Deutsche Bank, and
Capgemini, have moved to SaaS solutions provided
by major HR software vendors such as Oracle, SAP, and
Skillsoft SumTotal.

This shift is due to various organizational requirements

such as integrating new HR software with third-party
applications, removing aging legacy systems, achieving
efficiency, standardizing across global locations, and to
reduce cost. Table 1 provides an overview of the benefits
of on-premise and SaaS HR software.

Cloud computing data security issues have also

largely been addressed. Certain organizations (such
as government organizations) have strict security
rules associated with their sensitive data and spend
considerable money on data security, including hiring Figure 2: Major HR software based on delivery model
specialists to manage their data security. For such
customers, cloud computing was perceived to have data
security risks. In response, cloud providers hired specialists
1: Redwood Capital Group, Human Capital Management Report, October 2013

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

On-premise On-premise
SaaS Advantages SaaS Disadvantages
Advantages Disadvantages

Possibly lower Expensive initial Low initial cost Requires a pre-

TCO in long term hardware and Frequent new features payment option for
for very large software investment updated automatically cloud usage
organizations Longer time to and upgrades Disruption in service if
The only solution if commission included vendor goes out of
data security Expensive upgrades Lower IT costs due to business
requires total less on-site Reliable and fast
Consistent IT support
lockdown maintenance internet is required for
required for server
Existing on- and application responsibilities smooth HR activity
premise hardware maintenance Faster deployment
can be re-used
Long time for Easily scalable and
upgrades and new integrates with other
version updates SaaS offerings

Table 1: On-premise comparison with on SaaS deployment

Some large enterprises may utilize a hybrid deployment
that provides an on-premise copy (or cache) of the cloud
service, especially at sites where internet availability
is poor or unreliable. This prevents the enterprise from
losing HR functions if the internet connection goes
down.
C. MAJOR HR SUITE VENDORS
SumTotal, and Ultimate Software. Figure 3 shows the
major vendors that offer complete HCM suites covering
major functionalities and tasks used by HR departments
in large enterprises. For more information on these
companies, please see the Appendix.
Note that there are many other vendors providing HR
software on the market, but most are not suitable for
large enterprises.

Vendors such as Oracle and SAP2,3 have a large presence

in the HR software market, but there are other notable
vendors suitable for large enterprises such as ADP, Kronos,

Figure 3: Major HR software vendors

2: http://ww2.cfo.com/applications/2013/05/hr-tech-vendors-whos-out-there/
3: http://searchfinancialapplications.techtarget.com/feature/Which-HR-tools-are-right-for-your-company

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HUMAN RESOURCE SOFTWARE COMPARISON 2015
D. TRENDS IN HR SOFTWARE MARKET
Transition from Core HR to HCM Suite
The HR software landscape has changed over the past
decade based on organizational needs. HR software used
to support only core HR functions, with even payroll often
a separate component. This migrated to best of breed
software that would incorporate various components of
what is today known as HCM, but inconsistently across
vendors. Today, the components are well-defined and
packaged as HCM, and although vendors still vary in
their support of all HCM features, it is easier to compare.
SaaS based HR Software
SaaS is a revolutionary trend in most software areas,
and the HR software industry is no exception. Major
ERP vendors and emerging players have invested
significantly to meet the significant rise in demand for
SaaS HR software. Several major ERP vendors chose to
acquire other companies rather than build their own
SaaS solutions due to customer demand.
Figure 4 (following page) contrasts the size, strategy, and
offerings of major SaaS HR software vendors.
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Oracle and SAP are well-known vendors, and both have
become strong players in the SaaS market through
acquisitions. SumTotal rivals them in feature offerings
due to its focus on HR software alone. Workday gained
popularity by being an early adopter of SaaS for HR
software4. Ultimate Software, ADP, and Kronos have
similarly made moves towards SaaS, but their offerings
are not as feature rich.
Rise in Demand for Talent Management
Strong competition in many market segments is leading
to increasingly long-term strategic planning from
organizations, and HR is no exception. Growing demand
for succession management and hiring and retaining the
best talent has led to a particularly significant increase in
demand for the talent management component of HCM.
Figure 5 (following page) shows revenues from talent
management are expected to grow at a compound
annual growth rate (CAGR) of 10% from 2012 to 2016;
and reach USD 5.65 billion in 20165. Consequently, many
HR software providers have focused development on
this component.
4: https://www.workday.com/company/news_events/press_releases/detail.
php?id=1884876#.VdTew_mqqko
5: Forrester Report, Forrester Wave: SaaS HR management System report, 2014
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Figure 4: SaaS HR software vendor landscape

Note 1. Bubble size refers to vendor size in by number of customers, strategy refers to expansion in multiple geographies and degree
of focus in acquiring new customers, and customer offering based on features offered by the solution.

Figure 5: Talent management market growth

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

Chapter 2. HR Software
Feature Comparison
HCM suites cover six major HR components illustrated component6, which is used in the comparison between
earlier. Table 2 below lists the features of each on-premise and SaaS vendor offerings.

6: Capgemini, Cloud watch on HCM cloud solutions report, July 2014

Workforce Talent Learning Compensation &

Core HR Recruitment
Management Management Management Benefits

Employee Time reporting Talent Workforce Leadership Base salary

Records assessment planning development admin
Payroll Attendance Succession Social Learning course Bonus program
planning Recruitment admin
Benefits admin Workforce Competency Candidate Content Employee
scheduling management engagement management recognition
Employee Productivity Career planning On-boarding Certifications Commission
shared service analysis
Managed Labor cost Employee Applicant Mobile learning Stock and long
shared service optimization performance evaluation term incentive
Jobs and Absence mgt. Corporate goal Requisitions Social and Wellness
positions management informal learning
Organizational Retirement and
structure savings

Table 2: Major features of each HCM component

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HUMAN RESOURCE SOFTWARE COMPARISON 2015
A. ON-PREMISE HR SOFTWARE
Table 3 (next page) illustrates the strength of offerings
from the major on-premise HR software vendors. Not all
vendors are listed as either they do not provide on-premise
delivery, or do not offer sufficient information about their
on-premise offering to evaluate with confidence. Refer
to the Appendix for brief vendor profiles.
Key points: yy
yy In compensation management, SAP ERP HCM has
a diverse reward strategy comprising of pay for
performance, long-term incentive, and variable pay
programs.
yy Oracle E-business Suite HCM provides a high degree
of HR analytics in different HR functional categories.
yy Infor Lawson is the third largest ERP software vendor
behind SAP and Oracle. Infor Lawson HCM also falls
behind SAP and Oracle in the talent management
suite.
yy ADP, Kronos, and SumTotal offer on-premise delivery,
but there is insufficient data to compare them in the
table above.
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B. SAAS HR SOFTWARE
Table 4 (next page) illustrates the strength of offerings
from the major SaaS HR software vendors. Not all vendors
are listed as either they do not provide SaaS delivery, or do
not offer sufficient information about their SaaS offering
to evaluate with confidence. Refer to the Appendix for
brief vendor profiles.
Workday is active in four of the six major HR
functionalities, with medium functionality offerings
in compensation management. It leads the SaaS HR
software segment. A major challenge with Workday is
it does not provide support for learning management.
yy Oracle Fusion HCM provides a complete HCM suite
on SaaS-based platform. Oracle is quite strong in
supporting core HR and workforce management;
however, Oracle Fusion HCM does not provide
support for mobile learning and mentoring.
yy SAP SuccessFactor provides SaaS-based HR
solutions to its clients. SAP covers a few functions in
compensation and benefits, but does not provide
support in wellness, retirement and benefit tasks in the
same category. In 2014, to reduce time and improve
cost efficiency, SAP introduced SuccessFactors
presentation tool to its functionality to automate
and improve the talent management process. It was
the market leader in a Gartner Magic Quadrant for its
talent management.
yy ADP Vantage lacks recruitment management and
does not support mobile learning and mentoring.
Under compensation, it does not cover employee
recognition, wellness and retirement benefit tasks.
ADP has a strong hold in core HR, payroll and talent
management. In 2014, ADP introduced health care tax
credit tools to its human resource and payroll platform
to simplify processes.
yy Ultimate Software UltiPro suffers from weak
performance management and recruitment
capabilities. Also, Ultipro lacks module integration
and has issues in salary planning and budgeting.
However, Ultipro has a strong hold in supporting core
HR functions.
yy Kronos is mostly recognized for workforce
management with incorporated core HR and payroll
functionalities. Key strengths of Kronos lie in time and
attendance management, controlling labor cost, and
minimizing compliance risks.
yy Skillsoft Sumtotal is stronger in performance and
succession management, which are part of talent and
workforce management. Sumtotal has strong visibility
in talent management, but weak in compensation
and benefits aspect of HR.
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Table 3: On-premise based major vendor features comparison

Table 4: SaaS based major vendor features comparison

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Chapter 3. HR Software
Price Comparison
Pricing of HR software is driven by multiple factors, with There is large scope for negotiation, making it difficult to
limited information available around cost offered by quote accurate price figures.
software or functionality in the open market. Vendors
prefer getting requests along with the requirement Figure 6 below indicates two common pricing models
from potential customers and offer quotes based followed in the market by HR software vendors across the
on customers defined needs, size of the customer, world: the perpetual license model and the subscription
industry of the customer, location of the customer, model.
level of customization required, support and training
requirements, and various internal measures such as
possible competitors.

Figure 6: Pricing models

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

In addition to licensing costs, there may be further Internally, an organization should also consider costs due
upfront/one-off or recurring costs in a vendor offer: to data migration or additional hardware/IT.

Up-front costs include Prices offered by vendors vary depending on the size of
the organization.
yy Customizations
Figure 71 below shows the price range for perpetual
yy Installation/setup licenses offered by vendors based on company size.

yy Integration with existing systems Figure 82 below illustrates the price range for monthly
subscriptions offered by vendors based on company size.
yy Upgrades
Table 5 (next page) highlights how organizations compare
Recurring costs include on prices for HR software for core HR functionality:

yy Cost for premium support service

1This section covers prices of HR software supporting core HR functionality only
2This section covers prices of HR software supporting core HR functionality
yy Multi-year maintenance costs only..

Figure 7: Perpetual license price ranges (in USD)

Figure 8: Subscription price ranges (in USD)

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

Table 5: Software prices for core HR (in USD ) 7

7: Software Advice, pricing guide core HR software

8: https://www.getapp.com/hr-employee-management-software/a/adp-vantage-hcm-r/#pricing

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HUMAN RESOURCE SOFTWARE COMPARISON 2015
Chapter 4. Support by HR
Software Vendors
A. GLOBAL SUPPORT
Large organizations with global offices or those looking
to expand into new regions often pay extra attention to
the global support offered by their vendors. HR software
is no exception and several vendors offer global support
at varying levels.
Below are the important parameters on which HR
software vendors are evaluated for the level of support
they offer:
yy How many regions do they serve directly or through
channel partners
yy How robust is their customer support
Is there 24/7 availability
Are there a variety of mediums such as phone,
email, and chat,
Are there dedicated account or service managers
Are the above available in all regions
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yy How robust is their technical support
In addition to the customer support points above,
what kind of availability is there for product
experts, system specialists, etc.
yy Software and system maintenance: how and when
does the vendor offer updates for critical flaws, and
how long do they support a certain version of their
software
yy What training and certification is available, and
through what mediums: online training, on-demand
training, instructor-led training, self-study courses,
etc.
yy What does the vendors online portal offer in terms of
functional and technical documentation, knowledge
base, user community, software downloads, and
issue tracking
yy Which languages are supported by their software
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Table 6 below provides a comparison of major HR B. SUPPORT IN MIDDLE EAST

software vendors on all-important parameters indicated
above. Oracle and SAP are the leading players in the Middle
East with strong support for localization, such as
Oracle has the most versatile global support, followed by conformance with local business and tax laws. They are
SAP. The other vendors have strengths in several areas, followed by ADP and Kronos, which provide support
but also weaknesses in certain areas. Ultimate Software is through channel partners.
not weak in any particular area, but neither does it have a
number of strengths. Table 7 below provides comparison among HR software
vendors in terms of providing support in Middle East.
Oracle scores high on providing advanced technical
support, which includes 2-hour response time on priority
issues.

Table 6: Comparison of global support from major HR software vendors

Table 7: Support comparison in Middle East

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

Chapter 5. HR Software
Integration
Software integration of an HR system with existing
systems is often a requirement for large enterprises
that may be running multiple different systems across
global regions (e.g., different payroll systems in different
geographic areas). The vendors mentioned in this report
all provide support for integration with existing major
ERP systems, databases, authentication systems, and a
myriad of third-party applications.
in managing their HR software at various locations and
was looking for a solution to integrate their employee
information with talent management. It then adopted
SAP SuccessFactors solution after major consideration
around integration with their existing HR software and
third party applications10. Alcoa deployed Oracle Fusion
HCM with existing Oracle E business suite application to
support its growth and innovation11.

However, not all vendors support a large number of legacy

applications, and enterprises should check carefully with
a vendors ability to integrate their HR software with any
existing legacy applications, or any custom applications,
that the enterprise uses. The largest vendors such as
Oracle and SAP are able to provide custom integration,
but this is often comes at a premium cost.

Large enterprises have successfully migrated to new

HR systems in recently, including complete migrations
to SaaS HR software from previous on-premise
installations. Yahoo moved from its legacy system to a
cloud based SaaS HR software provided by Workday
HCM9 with great success. Amway was facing a challenge
9: http://www.workday.com/customers/yahoo.php
10: http://www.successfactors.com/en_us/customers/amway.html
11: http://www.slideshare.net/oracle/hcm-cloudcustomersuccess2067414

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Chapter 6. Best Practices in

HR Software Selection
A. HR SOFTWARE SELECTION PROCESS Figure 9 below is a detailed overview of the chronological
process to undertake in selecting and deploying HR
HR software selection involves multiple steps expected software 12,13,14 .
to enable better decision making and assist in creating an
environment for successful HR software implementation.

Figure 9: HR software selection process

12: http://www.erpsearch.com/hrms-selection.php 14: Software advice report, Ten steps to selecting a right human resource
13: ACCPAC report, How to choose a HR system software

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Each abovementioned step needs to have a Figure 10 below details each of above activities with
predefined timeline attached to it to make the helpful information regarding the major considerations
implementation smooth with clear time accountability. at each stage:

1. Creating a project plan

yy Assemble a selection team, clearly define the roles and responsibilities of
team members to avoid conflict
yy Assign a leader to manage, review progress, handle formal communication,
and resolve issues. The leader should have appropriate corporate authority.
yy Set up a process to clearly identify and evaluate shortcomings of current
system, and solutions for improvement
yy Identify key stakeholders and departments and ensure adequate
communication with them

2. Requirement analysis and prioritization

yy Identify the improvements desired by stakeholders such as functionality,
reports, security, performance
yy Compile improvements into a set of requirements
yy Identify related business processes, applications, data, and systems or
software relevant to each requirement
yy Prioritize requirements by categorizing and weighting them
yy Establish list of must-have requirements
yy Review the requirement list with stakeholders

3. Executive commitment
yy Develop requirements into a proposal.
yy Clearly mention the challenges and shortcomings of existing system
yy Mention the benefits associated with new HR software such as payroll
tracking, benefits administration, talent management
yy Agree initial budget
yy Obtain approval from stakeholders and senior management or relevant
decision makers to begin selection process

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4. Software delivery model

yy Identify whether you need HR software in-house or hosted in cloud
yy Evaluate internal IT capability to support chosen delivery model
yy Evaluate vendor capabily to support chosen delivery model
yy Identify any issues related to the software delivery model such as possible
data migration, additional IT capital expenditure, additional IT staff, new
policies, business process customization needs, etc., that may influence
delivery model selection, and need to be discussed with vendors.

5. Identify vendor shortlist

yy Use must-have requirements to short list vendors
yy Consider customer support, technical support and upgrade option
provided by vendors for further short listing
yy Conduct phone interview with vendors to determine features they provide
yy Identify legal implications and government regulations associated with HR
software and vendor
yy Evaluate strength and weakness of each HR software and pick best three

6. Evaluate software demonstration

yy Share your prioritized requirement list with HR software vendor and invite
for product demonstration
yy Keep demonstration focused on your organization requirement
yy Invite stakeholders to evaluate product demo
yy Ask questions during the demonstration to get clarity about product
features
yy Provide scorecard or comments sheets to team to get their feedback

7. Score and rank HR software

yy Consolidate all scorecard to identify score for each HR software vendor
according to your requirements
yy Rank HR software and vendor based on score
yy Optionally create a rating matrix to evaluate score based on multiple criteria
such as functionality, support, localization, customization, user interface, etc.
yy Use rating scale to quantitavely evaluate the qualitative features
yy If convinced with a HR software, invite HR software vendor for deep-dive
product demo, including full stress-test with a percentage of company
employees if possible

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HUMAN RESOURCE SOFTWARE COMPARISON 2015

8. Compare price
yy From remaining vendors, request a detail price quotation inclusive of all cost
yy This helps when two or more vendors compete for your contract and can
provide you competitive pricing
yy Check details of quotation, and ensure it includes associated with license,
degree of customization, support services, learning, training, and other
charges.
yy Compare the all price quotations of each HR software

9. Verify software vendor reference

yy Once the HR software and vendor has been decided, do some back checking
to check company claims about its product feature
yy Ask HR software vendor to share reference of clients with similar business
requirement
yy Ask question to references to get their feedback about company product,
support service, software features to improve
yy Dig deep in references to check HR software capability and vendor credibility
yy Access HR software vendor financial viability and long term aspects

10. Review Service Level Agreement (SLA)

yy Review the SLA to negotiate the deal with HR software vendor
yy Check discounts as per industry standards and business needs
yy Cross verify to check software license for full user or partial user
yy Read terms and conditions carefully and looks for auto renewal clauses
yy As a backup, keep out clause in agreement, in case vendor fail to comply to
agreement condition

11. Implementation
yy Assign responsibility to HR software selection team created initially to be
involved in implementation
yy Hold pre implementation meeting to check original timeline and break it to
get more detail
yy Request HR software deployment plan from vendor and inquire about
implementation partner of HR vendor
yy Evaluate implementation timeline

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12. Training and support

yy Request training schedule from HR software vendor
yy Evaluate training schedule
yy Evaluate training based on feedback from trainees and use to modify training
as needed.
yy Share details of support contacts of HR software vendor with appropriate
coworkers

B. QUESTIONS TO ASK DURING HR SOFTWARE yy What is the companys history and policy on
SELECTION software upgrades and enhancements?

Critical evaluation of an HR software vendors offering yy What are the training options pre- and post-
is an important activity throughout the whole selection installation phase?
process to ensure successful implementation. Figure 12
presents a list of standard questions that a vendor should yy What compliance issues and government
be asked are listed below to help in this regard15,16. After regulations does the company stay updated on?
shortlisting vendors, it is imperative to get references
of other regional customers and get their opinion and
recommendation of the vendor.
Questions to be asked to HR software
A second set of standard questions for referees is reference
presented below to provide a fruitful discussion. Beyond
these standard questions a customer should also engage yy Why did you decide to select this vendor?
in industry-specific and region-specific questions to
ensure no issue there are no surprises later. yy What other HR software did you consider and
evaluate?

yy What additional or unexpected costs did you

Questions to be asked to HR software incur after purchasing the HR software?
vendor
yy What was the total implementation time and
yy What employee information tracking is suported what complications were encountered?
by your HR software?
yy How was the quality of training, support, and
yy What existing technologies and business process actual software?
software does it integrate with?
yy What problems did you face post-implementation
yy What existing payroll systems does your HR and how were they solved?
software support?
yy Would you renew or buy the same HR software
yy What third-party applications can be integrated again and why?
with your HR software?
yy Would you recommend your current HR software
yy What different kinds of reports can it generate, to someone else and why?
and what kind of customizations are possible?

yy What is the typical implementation timeline?

15: http://blog.capterra.com/10-questions-to-ask-an-hr-software-reference/
16: ACCPAC report, How to choose a HR system

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HUMAN RESOURCE SOFTWARE COMPARISON 2015
Major pain points in the HR software selection and
procurement process can be avoided if certain mistakes
are not committed. Below is the compilation of what one
should consider and avoid:
yy Detailed selection process: Traditionally, complex
selection processes involve organizations issuing a
request for proposals (RFP) from vendors. HR software
selection is no different because it plays such a
major and critical role in the business. However, for
software, it is important to understand and define
business requirements as well as possible to ensure
that software options can be evaluated accurately.
yy Lack of executive support: Senior management and
other key personnel must be involved, committed,
and kept up-to-date during the complete process
to avoid wasting resources and hampering existing
business processes.
yy Failure to consider the total cost of ownership:
Organizations should not only consider the cost of
Table 8: HR software checklist
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purchase but also consider ancillary costs, such as
training, upgrades, and support costs in long run.
yy Buying HR software similar to competitor: Every
organization has unique challenges; therefore,
motivating the purchase of HR software simply
because it is similar to a competitor may not be a
good decision.
yy Consider HR and ancillary departments: It is a poor
decision to consider the HR department to be the
only stakeholder affected by HR software choice.
The integrated nature of modern HR software means
that finance, operations, and IT should all have an
important say in the final decision.
C. HR SOFTWARE CHECKLIST
A standard checklist to help quickly shortlist software
vendors is useful to move the selection process forward
as fast as possible. Table 8 provides a checklist to help
identify candidate HR software.
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HUMAN RESOURCE SOFTWARE COMPARISON 2015

Chapter 7. Comparison
Summary
On comparing leading HR software solutions available
in Middle East for large enterprises, Oracle and SAP
offerings stand out due to strong support provided in
the Middle East region. SumTotal can match in terms of
features, but their lack of support is a significant risk. ADP
and Kronos may be suitable if the enterprise does not
need a large set of features or gold-level support. Table 9
gives a summary.

Table 9: Summary comparison of major HR software

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HUMAN RESOURCE SOFTWARE COMPARISON 2015
Chapter 8. Conclusion
The HR software market has evolved over the past
decade with enterprise level customers looking for
more features and better return on investment. This
has led to HR software maturing into a Human Capital
Management (HCM) and supporting a large set of
ancillary HR functions, increasing global support, and
reducing TCO through the SaaS delivery model.
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Major market players such as Oracle and SAP continue
to be frontrunners in understanding changing customer
needs and offering premium support, and a cloud
hosted solution. They are offering their feature-rich HCM
suites to large enterprises such as Capgemini, Symantec
and Yahoo. They have the best support in the Middle East
region. ADP and Kronos can offer a solution with fewer
features and support, and should be considered if they
meet an organizations requirements while offering a
more competitive price.
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HUMAN RESOURCE SOFTWARE COMPARISON 2015
Appendix
Below are brief profiles of major HR software vendors
that are active in the market.
1. SAP
SAP, founded in 1972, has product, consulting,
and training as their main core business areas. SAP
SuccessFactors is their subsidiary, which they acquired
in 2011 to enter the cloud-based HR software market.
They also acquired Ariba, an IT service company in 2012.
SuccessFactors provides HCM-based SaaS solution and
has presence in multiple geographical locations, such
as North America, APAC, and Europe, and it is rapidly
expanding into Middle Eastern and African region. Key
clients of SAP SuccessFactors include AMD, Bechtel,
Nissan, Cisco, Walmart, and eBay.
2. Oracle
Oracle, founded in 1977, specializes in products and
solutions in computer hardware systems, enterprise
software products, particularly, in database management
systems. Oracle has been one of the major ERP solutions
providers worldwide and has a massive partner network.
Major Oracle acquisitions in the HR software industry
include PeopleSoft and Taleo. Oracle has presence in
North America, EMEA, and APAC region. Major Oracle
customers in the HR software industry include Toshiba
Medical systems, Dell, First Data, Nationwide, Elizabeth
Arden, and Deutsche Bank.
3. SkillSoft SumTotal
SumTotal Systems Inc., founded in 1985, was acquired by
Skillsoft in 2014. They provide HCM solution in consulting,
training, and talent management software. They are
renowned globally for their talent management. They
are active in North America, APAC, and Europe region.
SumTotal acquired Softscape for their talent management
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offerings and Geo Learning for their learning portfolio.
Major customers for the company include Capgemini,
KPMG, Air Canada, US Airways, and Pfizer.
4. Workday
Workday came into being in 2005. They provide financial
and HCM solutions based on the SaaS delivery model.
Workday is present in North America, Europe, and is
expanding into the APAC and Middle East regions.
Workday is forming strategic partnerships with channel
partners, HP being one of them. Their major customers
include Aviva, Yahoo, and TripAdvisor.
5. Ultimate Software
Ultimate Software was founded in 1990. They provide
HR software solutions to customers worldwide, but
their primary presence is in North America and Europe.
In 2013, Ultimate Software acquired EmployTouch Inc., a
tablet-based solution for time and labor data collection.
Their major customers include Culligan International,
Subway, and Adobe.
6. ADP
ADP was founded in 1949. ADP provides business process
outsourcing solution and has presence in North America,
EMEA, and APAC region. ADP acquired Payroll S.A. to
strengthen their HR software portfolio. Their customers
include Tetra Pak, Qualcomm, and Credit Suisse.
7. Kronos
Kronos was founded in 1977 and is recognized worldwide
as a workforce management software solution provider.
Kronos has presence in North America, Europe, APAC,
and Middle East. Kronos acquired Stromberg, a time
and attendance software vendor, in 2009. Their major
customers include Home Depot, GE Aviation, Con-way,
Best Buy Canada, and Ikea UK.
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