Credit: Shutterstock photoThe Ultimate Software Group, Inc. ULTI recently announced that it is forming a strategic partnership with Deloitte Canada. The alliance is aimed at providing its UltiPro HCM suite throughout North America via Deloitte's consultancy and technology service abilities.
Deloitte's consulting services will enable Ultimate Software's customers in enhancing performance to offer a comprehensive solution related to HR capabilities, comprising Payroll, Time Tracking, Recruiting, Learning, Talent and Performance Management, Onboarding, Career Development, Compensation Management and System Administration.
The move is anticipated to be a win-win agreement for both companies. This deal will help Deloitte offer its clients a quality services through UltiPro's AI technology platform.. In case of Ultimate Software, the deal will be helpful as its products and services offering complementary solutions will now have a broader market.
According to Julie Dodd, chief services officer at Ultimate Software, "Our alliance with Deloitte represents our ability to support the largest and most complex businesses." He further added, "By working together, our mutual customers will benefit from UltiPro's advanced HCM functionality leveraging Deloitte's world-class consulting services."
Consequently, both companies together will be able to launch more complete business solutions that include UltiPro's core solution, featuring modern Artificial Intelligence (AI) and Machine Learning (ML), Predictive Analytics Tools, Global HCM Reporting, Employee Surveys and Sentiment Analysis as well as Workforce Analytics, and Business Intelligence Tools.
Bottom Line
Ultimate Software is benefiting from robust adoption of its HCM solutions. Its cloud-based business model and expanding product portfolio are key catalysts. Top-line growth is expected to be bolstered by the portfolio strength. Additionally, new customer wins as well as impressive retention rates bode well.
However, intensifying competition in the HCM market from the likes of Oracle ORCL , Paycom Software, Inc. PAYC and SAP SE SAP along with higher operating expenses remain major concerns. This apart, the ongoing trend to invest more in cloud solutions exposes Ultimate Software to the risk of losing existing enterprise customers which can adversely impact its top-line performance, especially in the near term.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Paycom Software, Inc. (PAYC): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
The Ultimate Software Group, Inc. (ULTI): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
