Despite the current recession, vendors of talent management systems are seeing significant growth, and a major research firm predicts the market to expand by 15 percent in the next 12 months.
According to Bersin & Associates, the talent management market — currently assessed at $2.2 billion — is beginning to shake out. Of the 30 or so existing vendors, the market-share leaders by revenue are Taleo, SuccessFactors, SumTotal Systems and Kenexa.
“Taleo and SuccessFactors have done very well this year, in large part because of significant new offerings and customer responsiveness,” says Josh Bersin. “SumTotal and Saba have benefited from their established leadership in the enterprise learning market.
“But the race for market leadership is far from over. You can’t count out ERP vendors such as Oracle and SAP. Additionally, we’ll be seeing more emphasis on talent management from talent-acquisition system vendors. And almost every learning management system vendor now has a talent management offering. This market is still very young, with plenty of potential for new entrants.”
Other research findings:
>> Traditional ERP providers are losing market share to companies specializing in talent-management offerings.
>> Most buyers realize they must clearly define an integrated talent management systems strategy.
>> Integrated offerings are clearly winning out over best-of-breed selections.
>> Big-bang implementations are rare.
The report’s principal analyst and contributing author says that the talent management systems market is characterized by innovation, strategic partnerships and rapidly evolving functionality. “We’ve seen amazing new offerings and features in the demonstrations conducted for this study. For instance, providers such as Taleo, Cornerstone OnDemand, SuccessFactors, Learn.com, Plateau and Saba have all introduced advanced features that support social networking.”
For more information on “Talent Management Systems 2010,” visit the Website www.bersin.com.