Human capital management (HCM) software helps employers manage and look after their employees. Even though cloud security remains a restraint for HCM software adoption, increasing demand from almost every industry as part of their digital transformation efforts and cost reduction should boost the HCM software market's growth. Moreover, as hybrid working is expected to continue in the foreseeable future, the demand for HCM software is expected to remain steady. Furthermore, the future looks promising for the HCM software industry due to the consistent advancements in the Artificial Intelligence (AI) and Machine Learning (ML) space. According to a Mordor Intelligence report, the human capital management software market is expected to grow at a CAGR of 6.7% by 2026. Therefore, both Workday (WDAY) and Ceridian HCM Holding (CDAY) should benefit.
WDAY provides enterprise cloud applications that help its customers to manage critical business functions and optimize their financial and human resources. The company offers a suite of financial management applications, which enable chief financial officers to maintain accounting information in the general ledger. CDAY operates as a human capital management software company internationally. The company offers Dayforce and Powerpay. It also provides Bureau solutions for payroll and payroll-related services and sells its solutions through direct sales force and third-party channels.
