Our summary: while this article is several months old, it discusses how the HR market is heating up as companies are upgrading their Talent Management infrastructure. We are in the right market. 🙂
The Sleepy Little HR Software Market Is On Fire
by Josh Bersin
Originally Published on 2/09/2012
There is a sleepy old enterprise software market for HR systems which is on fire. Within the last 60 days, SAP acquired SuccessFactors for $3.4 billion (nearly 10X revenues) and Oracle just acquired Taleo (leading software provider for corporate recruiting) for $1.9 billion (around 5.3X revenues).
There are three huge trends taking place.First, corporate software is now moving to the cloud. The $15 billion+ marketplace for core human resources, payroll, and talent management software is being totally revamped. Companies are starting to replace all this core infrastructure software (much of which is 10-20 years old) with new cloud products – and the big players (Oracle and SAP) are buying their way into this market.
Second, the market for integrated talent management software has matured. Over the last ten years most companies purchased a wide variety of tools to help with recruiting, performance management, training management, compensation management, and workforce planning.