Which statement about SCIM is correct?

The statement that SCIM automates the exchange of user identities is correct because SCIM (System for Cross-domain Identity Management) is designed specifically to simplify the management of user identities across various domains. It provides a standardized framework for automating the provisioning and deprovisioning of user accounts in cloud applications and services. This automation helps organizations to efficiently handle user identity data across different platforms, reducing manual errors and improving operational efficiency.

In contrast to the other options, SCIM is not limited to on-premise identity management, can be effectively utilized for cloud applications, and does not require manual input for every transaction, as it implements automation and standardization to streamline identity management processes.