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