Workday Services Bringing New HCM Era to Europe

Digitalization, pandemic effects nudge enterprises toward modern, SaaS-based workforce management that meets European requirements, ISG Provider Lens report says

European enterprises are beginning to adopt the Workday platform as they modernize their human capital management (HCM) systems as part of increasing digitalization, according to a new research report published  by Information Services Group (ISG) a leading global technology research and advisory firm.

The 2022 ISG Provider Lens Workday Ecosystem report for Europe finds that Workday is gaining traction in Europe through partnerships with service providers and adapting its product suite to meet regional needs in areas such as language, taxation and policies. At the same time, Europe has moved toward SaaS platforms such as Workday in the wake of disruptions caused by the COVID-19 pandemic.

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“Workplace cultures are slowly evolving in Europe, and that gives companies a viable opportunity to digitize functions like HCM,” said Yadu Singh, EMEA lead for ISG Digital Platform and Solutions. “We expect European demand for Workday to keep growing in the coming years.”

Traditional, on-premises HCM platforms have long been in place at most large organizations in Europe, so transitions to the cloud-based Workday suite can be complicated due to deeply rooted management policies, connected processes and system data regulations that have evolved over time, the report says. Enterprises are turning to service providers for consulting, implementation and managed services to handle the increased complexity. Data conversion and migration are often high priorities due to data protection and privacy rules in the EU.

However, the use of consulting, advisory and managed services for Workday is still at an early stage in Europe, the report says. ISG expects Workday managed services to gain traction in the coming years as companies embrace customizations by service providers, which few clients are requesting yet.

“Workday’s flexibility is the key to its value for all types and sizes of organizations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can hone its capabilities for specific requirements.”

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Within the region, the U.K., Germany and the Nordics markets are furthest along in embracing Workday and developing new use cases, ISG says. Most enterprises in Europe are adopting Workday products gradually to meet specific needs, then integrating them with older systems, rather than switching over to the new platform all at once. For implementation, most companies are working with providers that have a local point of contact familiar with European laws and regulations.

The report also explores other trends affecting the Workday ecosystem in Europe, including the growing need for enterprise agility, increased interest in data analytics and Workday’s emerging digital roadmap for modernization.

The 2022 ISG Provider Lens™ Workday Ecosystem report for Europe evaluates the capabilities of 16 providers across three quadrants: Consulting and Strategy Services, Implementation and Integration Services, and Managed Services.

The report names Accenture, Alight, Collaborative Solutions and Deloitte as Leaders in all three quadrants. It names OneSource Virtual as a Leader in two quadrants and Hexaware, Kainos, PwC and Tietoevry as Leaders in one quadrant each.

In addition, Tietoevry is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Hexaware is named as a Rising Star in one quadrant.

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