Microsoft gaining ground in HR, but many cite high costs for not taking trials into production

The latest research from award winning market intelligence service Delta reveals how the European market sees the lead players in HR systems

Microsoft is thought to be gaining ground in the European HR systems market, according to senior end users at medium-to-large organisations, but many are put off implementing it at their organisation by perceived high costs.

That's according to recent research from award winning market intelligence service Delta.

Delta independently sourced hundreds of senior end users at European-based organisations to find out what they think of the HR platforms they use in their organisations.

The research revealed that Microsoft was top of the list of vendors thought to be gaining ground in the market.

Microsoft Dynamics 365 for Talent was the most trialled of all the solutions surveyed, with 21 per cent of the survey sample having trialled it. Less than a third of those who trialled it eventually took it to production. Among those who did not deploy after trial, cost was frequently mentioned. Others had an incumbent payroll supplier and chose to go with that vendor's HR offering while others were testing Talent to see if it would make a suitable replacement for their current provider, but decided against the switch.

Microsoft was thought to be growing in importance because of its ability to combine multiple cloud offerings under a single integrated roof.

Others felt that it was a good fit with their other Microsoft systems: "It's easy to integrate, and has a particularly good integration with the wider Microsoft stack, making it a good option for existing Dynamics customers," said one respondent.

Others were less keen, citing high cost and fear of vendor lock-in for looking elsewhere.

"The initial price may be good but in the future they may ramp it up because of the change in market value," said a technical lead in a local authority.

Sage HR was the second most-trialled and -adopted system in the market.

Other vendors explored in the research include Oracle Peoplesoft, SAP SuccessFactors, Workday, Northgate, MHR, Oracle HCM Cloud, ADP, Zoho, HR Select, Kronos, Bamboo HR, Oracle Huamn Resources and UNIT4.

See more from this research here.