SOURCE: Brown Gibbons Lang & Company LLC

Brown Gibbons Lang & Company

March 19, 2015 07:00 ET

Brown Gibbons Lang: SaaS Technology Transforming HR Outsourcing Industry

A Research Report Inclusive of a Roundtable Survey of Leading CEOs, CHROs, CIOs, Consultants and Investors in the Human Capital Management Outsourcing Space

CLEVELAND, OH and CHICAGO, IL--(Marketwired - March 19, 2015) - Software-as-a-Service (SaaS) technology is rapidly changing the competitive landscape in the HRMS / Payroll industry, according to the Business Services Insider, an industry report released by Brown Gibbons Lang & Company (BGL),

The BGL report, now available online, examines the drivers of premium valuations in the marketplace, supported by findings from a roundtable survey of leading CEOs, CHROs, CIOs, consultants, and investors in the human capital management outsourcing space. The importance of various SaaS offerings in the HR Technology market is explored, looking at the functionality and architecture of the technology and the implications on valuation.

Recent M&A activity is reflective of the high premium on value that the SaaS market is currently experiencing, with large industry players looking to enhance their solution offerings and access the small business and middle markets which generate the majority of industry revenue.

"The fundamental requirements for certain capabilities within an organization-CRM, HR, financial-have become commoditized. The premiums are being paid for higher order business applications with cross-dimensional functional or analytic capabilities on top of the core," said Mark Layden, CEO of Greenwood Technology Partners, a portfolio company of private equity fund Waud Capital Partners, one of the firms that participated in the report.

BGL publishes periodic Insider research publications. The middle market investment banking firm based in Cleveland and Chicago releases reports on a variety of industries including automotive; business services; consumer products; building products and construction materials; energy and environmental services; healthcare and life sciences; industrials; metals; and plastics and packaging. Download BGL Insider reports at

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