Report: Spending on Core Administrative Systems on the Rise

Colleges and universities are investing in both finance and human capital management (HCM) systems at an increasing rate, according to a new report from the Tambellini Group, a technology research and advisory firm focused on higher education. The growth in spending more than doubled in 2020 from the previous year, rising by 40 percent in finance and 45 percent in HCM. In comparison, the year 2019 saw spending on those systems grow by 20 percent and 17 percent, respectively, in 2019.

Among those institutions deploying new finance and HCM systems, 90 percent opted for cloud-based solutions. And 65 percent of those institutions chose Oracle or Workday as their system provider, according to the report.

In the next three years, the report predicted, the percentage of large institutions adopting cloud-based finance and HCM systems will more than double. And across mid-size and small institutions, the percentages is expected to triple.

"After a year of rapid change driven by necessity, higher education institutions have reached a critical crossroads: They can revert to business as usual or embrace the new reality," commented Vicki Tambellini, CEO and founder of the Tambellini Group, in a statement. "Our report's findings are encouraging because they show that many are seizing the opportunity to proactively improve and future-proof their institutions by committing to multi-year projects to modernize their core administrative systems."

The "2021 Financial Management and Human Capital Management Systems US Higher Education Market Share, Trends, and Leaders Report" is based on the firm's research, interviews and data from more than 4,300 higher education institutions across the United States. The full report is available to Tambellini Group members here.

About the Author

Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].

Featured

  • interconnected glowing nodes and circuits in blue and green, forming a neural network on a dark background with a futuristic design

    Tech Giants Launch $100 Billion AI Infrastructure Network Project

    OpenAI, SoftBank, and Oracle have unveiled a new venture, Stargate, through which they aim to build a massive AI infrastructure network across the United States. The initiative, which was announced at the White House with President Donald Trump, has been described as the "largest AI infrastructure project in history."

  • Two figures, one male and one female, stand beside a transparent digital interface displaying AI symbols like neural networks, code, and a shield, against a clean blue gradient background.

    Report Makes Business Case for Responsible AI

    A new report commissioned by Microsoft and published last month by research firm IDC notes that 91% of organizations use AI tech and expect more than a 24% improvement in customer experience, business resilience, sustainability, and operational efficiency due to AI in 2024.

  • blue and green lines intersecting and merging in an abstract pattern against a light gray background with a subtle grid design

    Data Integration Market: Cloud Giants Down, AI Up

    "By 2027, AI assistants and AI-enhanced workflows incorporated into data integration tools will reduce manual intervention by 60 percent and enable self-service data management," according to research firm Gartner.

  • Two autonomous AI figures performing tasks in a tech environment; one interacts with floating holographic screens, while the other manipulates digital components

    Agentic AI Named Top Tech Trend for 2025

    Agentic AI will be the top tech trend for 2025, according to research firm Gartner. The term describes autonomous machine "agents" that move beyond query-and-response generative chatbots to do enterprise-related tasks without human guidance.