Oracle ORCL introduced a new payroll solution — Oracle Payroll Core — which forms a part of its broader Oracle Fusion Cloud Human Capital Management (HCM) offering.
The new payroll solution is primarily designed for intergovernmental and nongovernmental organizations (IGOs and NGOs). The Oracle Payroll Core will aid in easy compliance with various local and international renumeration guidelines as well as transfer compensation to employees anywhere in any currency.
By utilizing Oracle Payroll Core, it will become easier for NGOs and IGOs to adhere to any combination of domestic and foreign pay guidelines by aligning their payroll calculations for a varied set of employees, irrespective of location, noted the tech giant.
The solution will aid these organizations to break up the employee compensation in multiple currencies.
The new payroll offering will help employees to update changes regarding their personal information by utilizing employee self-service. This will lessen the administration’s burden.
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Organizations will also gain from certain Oracle Cloud HCM features that automatically integrates new employees to payroll platforms and validate data. This will safeguard payroll accuracy.
The new payroll offering will also facilitate the management to gain vital inputs to make well-informed decisions regarding workforce as it can analyze both payroll data as well as HR data like skills, performance information and demographics, added Oracle.
Opportunities Aplenty in the Lucrative HCM Domain
The worldwide HCM software market is likely to witness a CAGR of 6.7% between 2021 and 2026 and reach $24.64 billion, per a Mordor Intelligence report.
Enterprises have been adopting HCM solutions to enhance Human Resources (HR) functions as well as drive actionable insights to make informed decisions and boost employee productivity. The pandemic accelerated the shift.
Continuation of remote work set up and the adoption of hybrid work models globally have propelled the requirement for HCM offerings (especially cloud-based) to manage a scattered workforce. This is providing further momentum to the HCM market.
Oracle is one of the well-known players in the HCM space. The company’s HCM cloud solutions are widely being adopted by businesses as part of an Enterprise Resource Planning (ERP) cloud application suite.
A few months back, the tech giant introduced the Oracle Dynamic Skills solution to support businesses to gain a complete understanding of their employees’ skill sets as well as help staff to upskill.
Oracle Dynamic Skills, which leverages Artificial Intelligence (AI), is also a part of Oracle’s broader Fusion Cloud HCM solution.
In the last reported quarter, the company’s strategic back-office cloud applications business surged 25% (at constant currency). Management announced that NetSuite ERP and Fusion ERP cloud revenues were up 28% and 32%, respectively, in the first quarter of fiscal 2022.
Nonetheless, Oracle needs to watch out for stiff competition in the HCM software space from the likes of SAP SE SAP, Workday WDAY and Automatic Data Processing ADP.
At present, Oracle carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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