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Workday WDAY recently announced that it signed a Memorandum of Understanding (MoU) with U.K.-based Crown Commercial Service to accelerate deployment of cloud capabilities across the country’s public sector.
Workday added that Crown Commercial Service is one of the biggest public procurement organisations in the U.K.
Further, Workday noted that the new MoU, via Crown Commercial, will enable companies to gain access to Workday applications like Workday Human Capital Management (HCM), Workday Financial Management and Workday Adaptive Planning to suit their business needs.
Workday, Inc. Price and Consensus
Workday, Inc. price-consensus-chart | Workday, Inc. Quote
Currently, Workday solutions are leveraged by entities like UK Research and Innovation, Cabinet Office, Department for Education.
The latest collaboration bodes well for Workday’s top-line growth and instills investors’ confidence in the stock. Notably, shares of Workday have returned 38.8% compared with the industry’s growth of 41.2% in the past year.
Ample Opportunities for Workday in HCM market
Workday is a one of the well-known providers of enterprise-level software solutions for financial management and human resource domains. Continued momentum seen for its HCM and financial management solutions is supporting the top line growth for the company.
Pandemic-triggered accelerated digital transformation of enterprises, worldwide, is driving adoption of Workday’s offerings like Workday Adaptive Planning, Workday Prism Analytics and Workday Strategic Sourcing as well as Spend Management offerings.
Per Expert Market Research report, HCM software market is expected to witness a CAGR of 8% between 2021 and 2026.
Increasing clout of Workday People Analytics, Workday People Experience and Workday Extend, integrated with improved capabilities augurs well for Workday’s top line growth.
Workday is also anticipated to gain from healthy uptake of its two latest offerings, VIBE Central and VIBE Index. Workday noted that VIBE is the acronym for Value Inclusion, Belonging and Equity. The two offerings help HR leaders to augment inclusivity and accelerate belonging and diversity (B&D) endeavours within the workplace.
The company’s other offerings like FINS Plus solution, Workday Accounting Center and Workday Talent Marketplace offerings are also witnessing strong adoption.
Workday’s acquisitions have also positively impacted the top-line growth. In Mar 2021, the company acquired Denmark-based Human Resource (HR) company, Peakon. Peakon specializes in improving employee engagement by converting employee feedback into actionable insights.
Previously, Workday purchased companies like Scout RFP (2019), TrustedKey (2019) and Adaptive Insights (2018) to fortify its competitive stance in the lucrative HCM market.
Nevertheless, Workday needs to watch out for stiff competition in the HCM and financial management software space from the likes of Oracle ORCL, SAP SAP and Automatic Data Processing ADP.
At present, Workday 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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