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Procurement Market Intelligence Report

Human Resources Software Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Human Resources Software?

What is the average price of Human Resources Software?

This procurement report includes pricing information to help you purchase Human Resources Software. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Human Resources Software been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Human Resources Software yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Human Resources Software?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Human Resources Software with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase Human Resources Software?

Market share concentration in the HR software market is high. The four largest vendors, including SAP SE, Oracle, Intuit and Microsoft, account for more than 50.0% of the market’s revenue in 2018. Market share concentration has been increasing during the past three years due to a wave of consolidation. For... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Innovation

How much of your revenue is set aside for ongoing R&D? Has this investment grown or decreased in recent years?

What is your process for recruiting and retaining skilled software developers? To what extent is employee training ongoing?

How many products or services do you have in your development pipeline?

Have any formal or informal partnerships been formed with your company? Has this improved profitability? How do your partnerships affect buyers?

Market Consolidation

Is the heavily concentrated market a positive factor for your operations or a risk? How so?

Has your company made any major acquisitions during the past three years? Are any planned for the future?

How have your acquisitions positively or negatively affected your financial stability?

To what extent does higher profitability translate into more flexible pricing?

Vendor Cost Structure

With software becoming increasingly easy to transfer online, are you reducing your wages? How do changes in wages affect your pricing?

How protected is your intellectual property?

Have you faced any legal complications in recent years?

Has your investment in R&D produced solid financial returns? What percentage of your efforts have failed to materialize?

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Key elements for every RFP

What should my Human Resources Software RFP include?

Project Budget

Buyers should state their budget for the HR software and the related services.

Buyers can reference the Benchmark Price and Total Cost of Ownership sections of this report for assistance in creating a budget.

Selection Criteria

Buyers should evaluate potential vendors based on their ability to meet the functional and technical requirements described in the RFP.

Buyers should evaluate potential vendors based on their ability to provide exceptional customer service.

Buyers should evaluate potential vendors based on their ability to provide regular software maintenance and upgrades.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers need to include the date when proposals are due and when the award will be announced.

Buyers should include key benchmark dates, such as the date by which implementation of the new software system must occur.

Buyers should outline the terms of the contract and cancellation policy.

Evaluate major factors to mitigate risk

How risky is the Human Resources Software supply chain?

Buyers face a low level of risk from the HR software supply chain. Vendors require a variety of goods and services to help support their operations, including computers, legal services and other electrical support services. First tier suppliers, such as computer manufacturers, IT consulting firms and software publishers all exhibit... Subscribe to learn more.

HIGH

MEDIUM

LOW