Over half (57%) of IT decision-makers in large organisations expect their human capital management (HCM) and enterprise resource planning (ERP) budgets to increase over the next 12 months. Just 12% anticipate a decrease.
That’s according to new research commissioned by ERP, HCM and outsourced payroll services provider, Symatrix, polling IT decision-makers in companies with 1,000+ employees.
The figures highlight a significant post-pandemic boost for an often under-funded yet crucial area of business. Over half (56%) of respondents say their business currently devotes 10% or less of their IT budget to human capital management (HCM) technology, for example.
‘Enhanced productivity’ was the most appropriate means for IT decision-makers to ‘measure the value of their investment in HCM / ERP systems today’, with 58% of the sample saying it was amongst the ways they mainly measure it, ahead of improvements in employee engagement (36%). However, 25% of respondents said productivity has been the most challenging benefit to realise from the previous investments in ERP/HCM.
When deciding to purchase a new ERP / HCM solution, ‘having the flexibility to make incremental developments to enhance the system to match business growth’ (cited by 30% of respondents) and ‘predictable running costs over time’ (28%) were the two most important factors.
Chris Brooks, managing director, Symatrix says, “Businesses have often spent comparatively little on HCM, in particular, as compared to their overall spending on IT. Yet, the impact of the pandemic looks set to change that and drive up spending on HCM and also on ERP, as organisations look to scale up their capability and deliver enhanced productivity and other efficiencies.”
Follow us and Comment on Twitter @TheEE_io