Financial applications – from DIY to outsourcing
About 86% of company offices with at least 50 employees use financial software. That can be a financial module from an ERP package or a separate financial package. There’s hardly been any change in that percentage over the last five years. However, there has been a change in recent years in the way in which people use the financial solution. In 2011, 52% of those surveyed operated their financial administration solution on their own premises, whilst that figure has dropped to 35% in the last five years. In the same period, the percentage that say they allow an external service provider to host the financial administration or use a Cloud solution has increased from 8% in 2012 to the current 30%. The use of a financial solution which operates at a parent or affiliated location has fallen slightly from 32% in 2012 to 27% now. This has emerged from an analysis by Computer Profile on the basis of over 5,000 interviews with ICT officers from Dutch company offices with at least 50 employees on site.
Several financial packages can be used for each location, one of which, for example, operates on the premises and one in a private Cloud. The total of packages on the premises, hosted, in the Cloud, and at a parent or affiliated location is therefore higher than 86% (the percentage of locations which say that they use a financial application).
If we look at the total number of software solutions used for financial administration, it emerges that SAP is the most popular supplier (21%). Exact is in second place with over 15% and Microsoft completes the top three with almost 12%.
For each market segment there is a clear noticeable difference in the penetration by the various vendors. For example, the financial software from Exact is the solution used the most in the public sector with a penetration of 20%. SAP and AFAS are numbers two and three with 12 and 10% respectively. The centre of gravity with Dutch multinationals is at SAP. Over half of them (55%) say that they use an SAP solution. Oracle, the number two, is used at 14% of these locations, and Microsoft is number three with 11%. With national enterprises Microsoft Dynamics is the most popular solution for financial administration with 19%. SAP and Exact are in second and third place with 18 and 12% respectively. With medium sized businesses Exact (19%), Microsoft (14%), and SAP (10%) make up the top three.
In surveying the most popular HR solutions, Computer Profile looked on the one hand at separate HR solutions, and, on the other hand, at ERP solutions in use, because these also usually include HR functions.
In this list, too, SAP occupies first place with 21%. Raet is in second place, but is followed closely by AFAS. For SAP it is once again the case that the company has a strong presence at locations of multinationals, namely at more than half of the companies surveyed. Oracle and ADP are in second and third place with penetrations of 16 and 13% respectively. In the public sector Raet is the most noticeable vendor. Raet solutions are used by 28% of these locations; Raet is followed some way behind by AFAS and SAP (12 and 11% respectively). The situation is closer in the national enterprises and medium sized businesses segments. Microsoft is the most popular vendor in both segments with 19 and 14% respectively. With national enterprises SAP and AFAS occupy places two and three, and with medium sized businesses Exact shares the top position with 14%. ADP is the third most popular party mentioned.
HR software is used all together by 86% of locations. The use of HR solutions which are hosted by external service providers or are taken from the Cloud is 43%. HR software still operates on a company’s own premises at 33% of company offices. A quarter of all locations say that they use HR solutions, but these operate on servers at the head office or an affiliated location. Here, too, there are clear and noticeable differences for the various market segments. With location from the public sector and multinationals HR software is accommodated mostly in the Cloud. HR use on the premises is most common in the national enterprises and medium sized businesses segments. Since several HR packages can be in use at one location, the total of the separate forms here, too, is higher than 86% (the total use of HR software).