The HR technology market is evolving at high speed. New players are entering the field, established names are strengthening their positions, and AI is becoming deeply embedded in the core of modern HCM platforms. At Advisory Services HQ, we closely monitor these developments — not just to stay informed, but to help organizations make the right strategic choices.
As in previous years, Fosway Group and Gartner have published their analyses of the international HR Tech landscape. Their research offers valuable insights into how leading HCM vendors — including SAP, Workday, Oracle, UKG, and HiBob — are shaping their strategies. This year’s reports highlight several key trends that will define the future of HR:
- AI as a strategic foundation within HCM and ERP
- Shifts at the top of the market, with new challengers entering the leader segment
- Strong growth in the mid-market, driven by agility and innovation
- And an increasing importance of regional coverage and compliance in HR platform selection
In this article, we summarize the most relevant findings from the Fosway 9-Grid and the Gartner Magic Quadrant 2025, interpret the strategic shifts, and explore what these developments mean for organizations preparing for an HCM selection or transformation.
From HR to Enterprise-Wide: AI in HCM
According to Gartner, major players are doubling down on end-to-end workflows where AI is fully integrated into ERP and broader business processes. Supported by strong partner networks and extensible suites, AI is evolving into a strategic foundation for modern HR. In conversations with our clients, we increasingly see that this integration between HR and business processes is becoming a decisive factor when choosing a platform.
The pace at which generative and agent-based AI is developing is remarkable — though pricing models vary widely between vendors.
Dayforce in the Spotlight: Strength in Specific Markets
Another noteworthy finding: Dayforce now appears in the same quadrant as Workday, Oracle, SAP, and UKG — even though it rarely makes the long list in HCM selections within our region. Dayforce is particularly strong in English-speaking markets, with a clear focus on sectors such as retail, services, and industrial manufacturing. The vendor offers a comprehensive HCM suite that includes payroll and benefits solutions, alongside a robust workforce management system.
When selecting an HCM vendor, it’s therefore crucial to look beyond functionality alone. Geographical coverage and local compliance capabilities often determine whether a solution is truly fit for purpose.
AI in SaaS: Hype or Strategy?
Major vendors such as SAP, Workday, and UKG have invested heavily in acquiring AI tools. It’s no surprise that they are all positioned as Strategic Leaders in the Fosway 9-Grid. Others, like Oracle, are pursuing the same goal through internal development rather than acquisition.
Integrating acquired AI technologies into existing platforms can take years, which is why the quality of AI capabilities developed natively within these ecosystems is often higher. The key question for organizations remains: do these AI functionalities truly deliver value and quality in practice?
Given the maturity and scale of current developments, it’s fair to say that AI in HR Tech has moved beyond the hype. It has become a deliberate, long-term strategy — one that enables HR to create real, measurable business impact.
Strategic Shifts in HCM: UKG Joins SAP, Oracle, and Workday
Comparing the Fosway 9-Grids of 2024 and 2025 reveals several interesting movements in the HCM landscape. The established players — Oracle, Workday, and SAP — have retained their strong positions in the Strategic Leader segment but are now joined by UKG. This is a significant development, as UKG combines a lower total cost of ownership with strong performance metrics, positioning itself as a serious contender among the top tier.
Competition at the Top Remains Fierce
Although SAP, Oracle, and Workday have swapped places in what could be called a “musical chairs” scenario, their positions remain closely aligned. The competition at the top of the market remains intense. With the rapid rise of AI technologies and a wave of recent acquisitions, it will be interesting to see how these vendors continue to refine their strategies.
The Mid-Market Is Accelerating Innovation
Beyond the top segment, the mid-market continues to evolve quickly. HiBob, for example, has made significant strides and is moving steadily toward the Strategic Leader grid. This shows that innovation and agility are increasingly rewarded in this part of the market.
The 2025 Fosway 9-Grid makes one thing clear: the HR technology landscape is in constant motion. Emerging technologies, shifting customer expectations, and market consolidation ensure that the cards are reshuffled every year — making this field more dynamic and relevant than ever.
It’s Not Just About the Big Five
While the “big five” vendors receive most of the attention, the Fosway 9-Grid also highlights a wide range of mid-market and niche providers. These vendors often stand out through rapid innovation, flexible implementation, and competitive pricing. For organizations that don’t necessarily need the largest platform, these solutions can be equally — or even more — relevant.
Interestingly, the gaps between top-tier vendors are narrowing, while innovation in the mid-market is accelerating. This makes the competitive landscape less predictable — and therefore, more exciting to follow.
The Art of Choosing in a Changing Market
Selecting the right HCM platform requires a careful balance of functional and regional needs, technological maturity, and strategic direction. Organizations should take time to stay informed, ask critical questions, and involve independent HR Tech advisors who can help align business and technology goals.
“It’s tempting to jump straight into tools and technology, but real progress begins with defining the underlying problem HR is trying to solve. Only then can you confidently choose a solution that supports the strategic direction of your organization.”
Advisory Services HQ is an independent boutique consultancy specializing in HR Transformation, HR Technology, Change Management, Employee Experience, and HR Data Insights.
We help organizations become future-ready by smartly aligning people, processes, and technology.