Prague, January 30, 2024 — According to the Worldwide Semiannual Software Tracker published by International Data Corporation (IDC), enterprise resource management (ERM) applications, will record a compound annual growth rate (CAGR) of 10% in Europe between 2023 and 2027. ERM refers to applications designed to automate and optimize business processes related to resources required to meet business or organizational objectives. The fastest-growing segment of this market will be human capital management (HCM) applications, with an expected CAGR of 13.5% for the same forecast period.
The European HCM market grew 17.6% year on year in 2022, and this momentum continued well into 2023, with growth for the first six months of the year reaching 17%. European organizations are struggling with ongoing talent shortages and are increasingly seeking tech solutions to streamline their talent acquisition, nurture employee experience, and influence management processes. While other areas of internal business processes, such as finances, contracts, and facilities have been digitalized over the past years, people management has hidden potential for future growth.
Human resources (HR) departments currently possess or will soon acquire a valuable reservoir of data as a result of the digitization of HR processes. However, the full potential of this data remains largely unrealized due to insufficient analytics capabilities and the use of outdated systems.
“To successfully evolve into data-driven entities, HR units need to adopt technology that facilitates the strategic utilization of data. Embracing a data-centric approach will enhance the role of HR and transition it from being a support function to becoming a strategic partner within businesses,” says Tomas Doktor, research manager with IDC European Software Data & Analytics.
About IDC’s Worldwide Semiannual Software Tracker
IDC’s Worldwide Semiannual Software Tracker provides an in-depth look into the competitive landscape and the market dynamics shaping the current and future direction of the global software industry. It tracks and details individual software vendors’ historical business performance, and it forecasts the development of the industry five years into the future — across 54 geographies and 81 discrete software market segments.
In addition, the tracker provides an understanding of the transition from traditional on-premises deployments to public cloud services by segmenting software revenue by deployment type, vendor, geography, and market segment. With the rapid transition from 2nd Platform to 3rd Platform technologies, it is critical for software vendors, public cloud services providers, supply chain partners, and the investment community to understand the underlying dynamics behind this transition. This extensive coverage of vendor share information enables both global and local players to benchmark themselves in terms of business growth and market penetration.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.