Cloud-based HCM platforms: How Infosys is challenging SAP SuccessFactors and Workday in enterprise HR

Why Cloud HCM Is Now the Battleground for Global Enterprise Transformation

The enterprise shift to digital-first operations has entered a new phase: Human Capital Management (HCM) is no longer a back-office function—it’s now a boardroom priority. As organizations face global talent shortages, hybrid work complexities, and rising compliance demands, cloud-based HCM platforms have become indispensable.

Traditionally dominated by SAP SuccessFactors, Workday, and Oracle Fusion HCM, the global HCM software market—valued at over $33 billion in 2024—is now seeing a new challenger emerge from the services world: Infosys, with its rapidly evolving Infosys Cobalt HR suite.

Unlike product-first vendors, Infosys approaches HCM as part of a broader business transformation mandate, combining platform deployment, AI-native analytics, and domain-specific compliance architecture. This approach is starting to gain traction among multinationals seeking more agility, integration, and cost flexibility than traditional ERP-HR suites offer.

What Makes Infosys Cobalt a New Force in the HCM Market?

Infosys Cobalt is not just a cloud toolkit—it is a full-stack ecosystem of 35,000+ assets, industry blueprints, automation libraries, and cloud-native templates spanning infrastructure, platforms, and business applications. In the HCM domain, Cobalt integrates AI orchestration, ESG-linked workforce analytics, and multilingual compliance workflows into a unified framework.

The most notable deployment to date is the HR transformation at LKQ Europe, where Infosys consolidated HR operations across 18 countries. Using Cobalt, the platform integrated performance management, real-time workforce planning, self-service payroll, and AI-driven engagement analytics within a single interface.

Infosys’ advantage lies in its ability to custom-build and deliver cloud-native HR stacks that not only replace legacy software but also bring AI automation, security, and vertical compliance pre-integrated. This bundling of services and technology enables Infosys to position itself as both a transformation partner and a cloud platform provider.

How Does Infosys Compare to SAP SuccessFactors in Enterprise HR?

SAP SuccessFactors remains deeply embedded in the global HR ecosystem, especially across Europe. Its strength is in global scalability, SAP ERP integration, and established compliance controls. Automotive giants like Volkswagen, BMW, and Daimler have built entire HR functions around SuccessFactors, benefitting from its role-based access models, talent analytics, and support for over 40 languages.

However, SAP’s cloud HR journey has faced criticism for architectural complexity. The coexistence of SuccessFactors and legacy SAP HCM has created confusion for clients navigating cloud migrations. The company’s RISE with SAP program is attempting to simplify this, but analyst sentiment remains cautious due to long implementation cycles and high TCO (total cost of ownership).

Infosys, by contrast, is winning clients who want lighter, more modular, and AI-native cloud stacks—particularly in multi-jurisdictional settings where compliance needs to be built into the core. Infosys’ ability to deliver compliance-ready configurations, like EU Working Time Directive controls or India‘s PF/ESIC frameworks, makes it attractive to companies seeking plug-and-play compliance with digital agility.

Can Infosys Cobalt Compete with Workday on AI and UX?

Workday has long held the upper hand in terms of user experience, mobile optimization, and built-in analytics. The platform has attracted fast-scaling companies, digital natives, and firms undergoing talent reorganization, particularly in North America and select parts of Europe.

Its Skills Cloud, Career Hub, and AI-generated mobility paths have set a new benchmark for talent development systems. Workday’s interface is designed for frontline usability, with drag-and-drop modules, automated workflows, and a rapidly expanding partner ecosystem. The company reported over $7.7 billion in FY25 revenue, with cloud HCM accounting for the bulk of its business.

Infosys, however, is closing the gap through the integration of Infosys Topaz, its generative AI framework. Topaz augments Cobalt by enabling features such as attrition prediction models, workforce sentiment analytics, and automated job architecture creation. Infosys is also investing in conversational interfaces for HR use cases—such as multilingual employee query resolution, benefits walkthroughs, and dynamic career coaching—especially useful for enterprises with globally distributed or deskless workforces.

In regions like the Middle East, India, and Central Europe—where Workday penetration is lower and compliance complexity is high—Infosys is seeing faster client conversions.

What Role Does TCO Play in the Shift Toward Infosys?

One of Infosys’ strongest value propositions is its flexible commercial model, especially for clients transitioning from license-based HR systems to cloud subscriptions. Infosys Cobalt deployments often bundle platform rollout, integration, and support within a service-based consumption model, reducing upfront costs and easing CAPEX pressure.

In contrast, SAP and Workday generally require separate vendor engagement for implementation, support, and integration—resulting in prolonged timelines and siloed accountability. This has opened a mid-market window for Infosys, particularly among firms seeking compliance-first, lower-footprint, cloud-native HR solutions that go live in under 6 months.

What Do Analysts Say About Infosys’ Growing HCM Position?

While Infosys is not yet tracked as a standalone HCM vendor in Gartner’s Magic Quadrant, analysts at Everest Group and ISG note that Infosys is becoming a “cloud orchestrator with proprietary IP.” Its focus on regulated industries—banking, healthcare, automotive—makes it a credible contender where compliance automation, localization, and governance are essential.

Infosys’ recent wins in Europe, the Middle East, and ASEAN regions highlight rising interest in hybrid HR transformation, where the buyer needs advisory, platform, and managed service under one umbrella. Industry watchers predict that Cobalt-based HR solutions will account for 10–12% of Infosys’ digital transformation pipeline by 2026, up from under 5% in 2023.

What’s the Future of Cloud HCM and Where Does Infosys Fit In?

The next generation of cloud HCM platforms will center around AI-native orchestration, carbon-linked workforce planning, and real-time multilingual engagement layers for global workforces. Platforms will need to dynamically adjust policies, recommend training, manage compliance risks, and forecast attrition—while remaining transparent, ethical, and low-code customizable.

Infosys is investing heavily in these layers. New capabilities on the Cobalt roadmap include AI-generated policy simulation, green HR scorecards, and hyper-personalized learning nudges. These features are designed to address the shifting dynamics of hybrid work, skills fluidity, and ESG reporting.

While SAP and Workday continue to lead in product maturity and enterprise footprint, Infosys is positioning itself not as a traditional vendor but as an AI-cloud compliance-first orchestrator, particularly in regions and sectors where legacy platforms struggle with pace, regulation, or deployment speed.