Oracle Corporation ( ORCL Quick Quote ORCL - Free Report) recently announced that ENGIE is leveraging Oracle Fusion Cloud Human Capital Management (HCM) solution to accelerate transformation of its human resource (HR) capabilities.
By utilizing Fusion Cloud HCM, ENGIE will be able to standardize HR procedures like management of HR information, recruitment process, career development, and workforce management, added the tech giant.
ENGIE will utilize the Artificial Intelligence (AI) and machine learning functionalities of Oracle Fusion Cloud Applications. France-based ENGIE is an electric utility company which provides low-carbon energy and services with a 170,000 strong workforce.
ENGIE deal is a notable win for Oracle as it reflects on strength of its cloud-based HCM solutions. The deal wins are expected to boost the company’s revenues in the upcoming quarters and instil investors’ confidence in the stock.
Notably, Oracle’s shares have returned 15.6% compared with the
industry’s rally of 29% in the past year. HCM Market Presents Significant Prospects
Enterprises have been rapidly adopting HCM solutions to boost HR functions and drive deeper and actionable insights before the pandemic. However, there is an increased requirement for HCM offerings to manage distributed workforce owing to remote work trend induced by the coronavirus crisis, at present. This is providing further momentum to the HCM market.
The worldwide HCM market is likely to witness a CAGR of 9.3% between 2020 and 2027 and reach $32.68 billion,
per a Fortune Business Insights report.
These projections bode well for Oracle. The company’s HCM cloud is widely being adopted by organizations, as part of an ERP cloud application suite. Further, the migration of several large-scale SAP clients to Fusion ERP cloud and Fusion HCM is an upside.
The company’s growing customer base is enabling it to maintain leading position in cloud HCM and ERP market. Management is optimistic regarding the latest Fusion Cloud HCM deals wins from Home Office (UK), Abdul Latif Jameel Enterprises, and Federated Co-operatives Limited.
second quarter of fiscal 2021, Oracle reported 24% increase for its Fusion HCM business. Headwinds Remain
Increasing expenses amid intensifying competition in the HCM space are major concerns for Oracle, which carries a Zacks Rank #3 (Hold).
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the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apart from Oracle, the HCM space is dominated by the likes of
Workday ( WDAY Quick Quote WDAY - Free Report) , SAP SE ( SAP Quick Quote SAP - Free Report) and Automatic Data Processing ( ADP Quick Quote ADP - Free Report) .
SAP’s SuccessFactors Solutions’ suite is the mainstay of the company’s HCM solutions. Recently, the company
added a new cloud-based solution— the SAP SuccessFactors Time Tracking — to its SAP SuccessFactors Human Experience Management (HXM) solutions’ portfolio.
Workday’s top line is being driven by high demand for its HCM and financial management solutions. Some of the notable HCM deal wins for Workday include Novartis, DraftKings, and CTBC Bank.
Automatic Data Processing is one of the leading names in cloud-based HCM solutions’ space. The company has expanded its footprint in the HCM market through multiple acquisitions that include Celergo, WorkMarket, and The Marcus Buckingham Company.
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