1. Cloud Watch on HCM applicationsSummary version November 2012Transform to the power of digital

2. A sneak peek at SaaS industry (1/2) November, Q3, 2012Vendor corner Workday rolled out the latest version of its human resources and finance cloud service>> Read More Cornerstone announced significant enhancements to its talent acquisition solution >> Read More Lumesse launches comprehensive on-demand learning content service >> Read More ADP unveiled its next-generation ADP Workforce Now cloud-based platform for midsize organizations >> Read MorePartnerships, alliances and M&As Korn/Ferry and SuccessFactors establish strategic partnership to develop solutions >> Read More Peoplefluent expands integration with LinkedIn Recruiter >> Read More IBM to acquire Kenexa to Bolster Social Business Initiatives >> Read More Halogen Software and SHL partnered to provide Talent and Assessment Solutions >> Read MoreCopyright 2012 Capgemini Consulting. All rights reserved.2 3. A sneak peek at SaaS industry (2/2)November, Q3, 2012Analysts speak Kronos received the NorthFace ScoreBoard Award from the Omega Management Group for excellence in customersatisfaction for 2011 >> Read More ADP ranked 68, up 19 spots from last year on Forbes List of Worlds Most Innovative Companies>> Read More Silkroad named as a finalist in the 4th Annual 2012 Golden Bridge awards for SaaS/Cloud computing >> Read More Ceridian has been named to leading strategy and consulting firm LAROCQUEs #HRWins 2012 HR Companies to Watchprogram >> Read More Events and awards Kenexa to unveil its fall 2012 lineup of new HR technology products during the 15th annual HR Technology Conference & Exposition in Chicago>> Read More Meta4 to showcase their Global SaaS HR solution at the international HR Tech Europe 2012 conference >> Read More SumTotal announced the opening of new EMEA headquarters in Reading, U.K >> Read MoreCopyright 2012 Capgemini Consulting. All rights reserved.3 4. HRMS SaaS can be categorized into core HRMS, compensation & benefits, talent, learning,recruitment and workforce managementHRMS SaaS Solution blueprintCourseLearning contentmanagementmanagement VirtualApplicant PerformanceGoalsMentoringSourcing classroomtrackingSuccession OrganisationSocial recruiting/LearningOn-boarding planningchartingnetworking management CompetencyStrategic Workforce Career planning Talent Recruiting managementplanning managementmanagementHRMSSolutions HRMS Solution(Cloud & Mobile) Compensation EmployeeCore HRMSPay-for- Stock based & deferred Payroll & benefitsrecords performancecompensation SalaryWorkforce IncentiveCompliancemanagement Market comparisonsadministration compensation Shared & self BenefitsEnrollment & Jobs & Positionsservice Time & administration communicationAttendance HR AnalyticsAbsence Workforce management schedulingSource HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; CC India Analysis;Copyright 2012 Capgemini Consulting. All rights reserved.4 5. Learning management has made the transition from on-premise solutions to SaaS andleading vendors indicate new deals coming in are heavily weighted towards SaaS Learning managementLearningThe SaaS model currently accounts for 45% of product revenues in management Learning ManagementLearning CourseLearning contentmanagement Virtual classroomMentoring managementmanagementTalent RecruitingmanagementmanagementDescription Vendor ExampleHRMS Talent management solution SuccessFactors is moving toward an Solutions HRMS SolutionNew Players in vendors are looking to enterinformal learning offering through its (Cloud & learning management marketrecent acquisition of JambokLearning Lumesse developed a learning Mobile) Compensationmanagement platform via its acquisition of Core HRMS & benefits ExecuTRACK Trends As learning has become more Cornerstone OnDemand, Plateau, andWorkforce Learning pointcentral to employee Saba had built performance solutions managementsolution vendors development, vendors have and now have robust integratedhave built or acquired responded by expanding theirofferingsperformancesolutions existing functionality SumTotal added performance capabilitiesand adding performancesolutions through acquisition of management to itSoftscapeVendor LandscapeCompleteness/Strength of the offering;Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; The Forrester Wave: Talent Management: Learning, 2011; Copyright 2012 Capgemini Consulting. All rights reserved. 5 6. Recruiting management solutions have a fair bit of SaaS based solution providers prevalentin the marketRecruiting ManagementRecruiting Forrester estimates that 83% of the recruitment solutions market is managementdeployed via SaaSLearningApplicantSocial recruiting/ Strategic Workforcemanagement SourcingOn-boarding trackingnetworking planning TalentRecruiting management management Description Vendor Example HRMS Acquisitions in the applicant Kenexa acquired BrassRing, CerdianSolutions HRMS Solutiontracking system (ATS) area mean acquired RSI, Sumtotal acquired (Cloud &fewer vendors and cater to theSoftscape and Cybershift Market consolidation needs of both enterprise and Mobile) CompensationSMB customersCore HRMS & benefits Trends Workforce Many vendors have made Oracle acquired Taleo to provide amanagementacquisitions for intellectual richer recruiting application Growth ofproperty, advanced technology, installed bases of the and increase of customer baseexisting players Vendor LandscapeCompleteness/Strength of the offering;Source:HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011; Copyright 2012 Capgemini Consulting. All rights reserved. 6 7. Compensation & benefits tools become a component of broader talent managementsuites and there have been significant mergers & acquisitions targets in the market Compensation & benefitsCompensationSaaS Penetration in the compensation and benefits function has gained& benefitsmomentum and is currently 52% of the market Learning pay-for- Stock based & deferred Incentive management performancecompensation compensation TalentRecruitingMarketBenefits Enrollment &comparisons administrationcommunication management management HRMS SolutionsHRMS Solution Description Vendor Example (Cloud & Compensation specialists Workscape added performance to itsMobile) Compensationleverage the link between compensation & benefits capabilitiesCore HRMS Compensation rewards and performance & positioned as an integrated player& benefitsvendors leverage pay- The link between performance Salary.com added performance-basedfor-performance and compensation is at least as talent management solutions viaWorkforce Trendsstrong as the link betweeninternal developmentmanagementperformance and learning There have been significant Examples include Kenexa acquiring Mergers &mergers and acquisitions in the Salary.com and ADPs acquisition ofAcquisitionscompensation market duringWorkscapethe past few years Vendor LandscapeCompleteness/Strength of the offering;Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Hype Cycle for Human Capital Management Software, Gartner-2011; The Four Pillars Of TalentManagement, Forrester Research, 2010; Copyright 2012 Capgemini Consulting. All rights reserved. 7 8. Mobile based workforce management (WFM), retailers & public sector industries relyingon WFM solutions to improve productivity are some of the trends in the spaceWorkforce managementWorkforceSaaS adoption has slowly started to evolve, as the leading vendors offer managementboth on-premise and on-demand LearningTime & Absence WorkforcemanagementAttendancemanagement scheduling Talent Recruiting managementmanagementDescriptionVendor ExampleHRMS SolutionsHRMS Solution There is an upsurge in adoption Kronos - Licensed to more thanStrong demand forof mobile based workforce250,000 employees across a wide (Cloud & Mobile WFMmanagement solutionvariety of industries Mobile) CompensationCore HRMS& benefits Growing demand for WFM in Reflexis claims that it has signed 30 TrendsDemand for WFM retail industry, it is estimated tonew clients in retail over past 1 yearsolutions in retailhave a CAGR of 3% till 2015Workforce management Counties and other departments Boulder county implements Kronos Increasing instances are extensively relying on WFM WFM to control labor costs, minimizeof public sector usage solution to streamline utilisation compliance risk, and improve WFMproductivity Vendor LandscapeCompleteness/Strength of the offering;Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Workforce management software, SearchCRM.com product directory, 2009; Factiva;Copyright 2012 Capgemini Consulting. All rights reserved.8 9. Only new generation software vendors throng the SaaS based core HRMS market and areslowly seeing acceptance in the marketCore HRMSMainstream adoption of SaaS based core HRMS has a long way to go withCore HRMSabout 18% revenue contribution Learning PayrollEmployeeSalaryCompliancemanagement records administration Shared & selfTalentRecruiting Jobs & PositionsHR Analytics management managementservice HRMS SolutionsHRMS SolutionDescription Vendor Example (Cloud & Although the overall breadth of Vendors are improving their depthMobile) CompensationHRMS FootprintsHRMS application suites has not through acquisitions Core HRMSGain In-Depth Talent,evolved significantly over the - Oracle acquired Taleo & benefitsAnalytics, And Globalpast several years, their depth- SAP acquired Successfactors of functionality has improved in Workforce Trends Capabilities several areas management Outsourcing vendors Outsourcing and ERP vendors Introduces new benefits and flexible and ERP vendors are are introducing mobile HR spending account functionality to itsintroducing mobile capabilities to their clients ADP mobile solutions application HR appsVendor LandscapeCompleteness/Strength of the offering;Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011;Copyright 2012 Capgemini Consulting. All rights reserved.9 10. Integration challenges with Core HRMS, growing importance of social talent managementare the key trends in Talent managementCompensation & benefits Talent58% of total revenue from talent management is through SaaS solutions managementLearning SuccessionmanagementPerformance Goalsplanning Organisation TalentRecruiting CompetencyCareer planning managementchartingmanagement managementHRMSSolutions HRMS SolutionDescription Vendor Example(Cloud & Organisations that want to be at the forefront must Provides a newMobile) Compensation Growing importance move their HR practices into social media age nowbreed of HRIS Core HRMS of social talent An organisations social HR strategy reflects itssoftware which is & benefitsmanagementculture, it can enhance productivity within an social open andorganisation and also collaboration and connectivity measurableWorkforce Trends More than 35% of organizations are not integrating NA managementtheir talent management applications with theirIntegrating challengescore HRMS applications, according to customer with Core HRMS reference survey Lack of usage of an integrated talent managementsuite is the main reason for integration challengesVendor LandscapeCompleteness/Strength of the offering;Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns With Talent Management, Forrester Research, 2011 ; The Talent ManagementSuite Market Emerges , Gartner Research, 2011; Copyright 2012 Capgemini Consulting. All rights reserved. 10 11. Ronald van den BergCompetence Cluster Leader Digital HRPrincipal Consultant People & PerfomanceMob : +31 (0)6 - 15030294Secretary : +31 (0)30-6898844Mail to : ronberg@capgemini.com Tim van der Wal Business Development and Sales Managing Consultant People & Performance Mob: +31 6 1503 0286 Secretary : +31 (0)30-6898844 Mail to : Tim.vander.wal@capgemini.com11