Competition
The market for HCM solutions is rapidly evolving, highly competitive and subject to changing technology,
shifting client needs and frequent introduction of new products and services. Our competitors range from small,
regional firms to large, well-established international firms with multiple product offerings.
We compete with firms that provide HCM solutions by various means. Many providers continue to deliver
legacy enterprise software, but as demand for greater flexibility and access to information grows, we believe
there will be increased competition in the delivery of HCM cloud-based solutions by other SaaS providers. Our
competitors offer HCM solutions that may overlap with one, several or all categories of applications offered by
our solution. Our talent acquisition and talent management applications compete primarily with Cornerstone
OnDemand, Inc., Oracle Corporation, SAP SE and Workday, Inc. Our payroll applications, including payroll
processing, compete primarily with Automatic Data Processing, Inc. (“ADP”), Ceridian HCM, Inc. (“Ceridian”),
Concur Technologies, Inc., Intuit Inc., Paychex, Inc., Paylocity Holding Corporation and The Ultimate Software
Group, Inc. Our HR management applications compete primarily with ADP, Ceridian, Oracle Corporation,
Paychex, Inc., Paylocity Holding Corporation, SAP SE, and Workday, Inc. Our time and labor management
applications compete primarily with ADP, Ceridian, Kronos Incorporated, Paylocity Holding Corporation and
The Ultimate Software Group, Inc. Our larger competitors compete with us across multiple segments. In
addition, our HCM solution continues to face competition from in-house payroll and HR systems and
departments as well as HR systems and software sold by third-party vendors.
Competition in the HCM solutions market is primarily based on service responsiveness, product quality and
reputation, breadth of service and application offering and price. The importance of these factors depends on the
size of the business. Price tends to be the most important factor of competition for smaller businesses with fewer
employees, while the scope of features and customization is more important to larger businesses. Regardless of a
company’s size, another important factor is the implementation experience, as all organizations are seeking a
streamlined and simplified on-boarding process. We believe that our SaaS delivery model allows us to be most
competitive in the HCM solutions market across this spectrum.
Paycom Software, Inc. - Annual Reports
