Talent Market Consolidation

May 2012

What is the impact of consolidation within the talent systems market on corporate strategies and supply-side options?

Taleo buys Learn.com. SuccessFactors buys Plateau. Lumesse buys Edvantage. SAP buys SuccessFactors. Oracle buys Taleo. Kenexa buys Outstart…What’s driving these big market changes and what do they mean for their customers? What’s the likely impact on the market, on competition between the vendors, and the supply side options available to corporates?

Within little more than 12 months the talent management market has changed beyond recognition, and that’s just looking at the bigger guys. Recruiting software companies and performance management companies acquire and merge to become talent management companies. Talent companies acquire to become bigger talent companies. And the 800 pound gorillas, the HRMS/ERP providers called SAP and Oracle, finally wade into the ring and take out two of the biggest talent management companies with one swing for a cool $3.4 billion and $1.9 billion respectively. Something is definitely up!

What’s driving these big market changes and what do they mean for their customers?

What’s the likely impact on the market, on competition between the vendors, and the supply options available to corporates? What will it mean for the specialist providers still standing in the market? What do you do if you’re a customer of one of the acquired companies, or have commited to products now owned by competing ERP vendors? How are these changes going to impact talent system decision making in the future?

Here’s our take.