Bersin by Deloitte: Global Spending on Integrated Talent Management Systems Anticipated to Rise 17 Percent to More Than $6 Billion in 2014

OAKLAND, Calif., June 26, 2014 /PRNewswire/ -- Bersin by Deloitte today introduced new research that shows the market for integrated talent management systems remains the most rapidly growing area within human capital management software.  Global spending on complex software systems is anticipated to grow 17 percent to more than $6 billion globally in 2014, up more than a third from spending levels just two years ago. Detailed findings are included in Bersin by Deloitte's new research report, "Talent Optimization for the Global Workforce: The Market for Talent Management Systems 2014."

The research focuses on integrated software systems that support multiple functions helping Human Resources to hire better, manage performance for better results, coordinate compensation, develop talent and address succession.  Trends driving changes in today's talent management systems market include: 

• Changing technology – Technology has changed with the infiltration of consumer technologies to the workplace, raising user expectations of ease-of-use. The concept of "social" has changed the user experience (and software interfaces) forever.
• Skilled talent shortages – These shortages are forcing organizations to address talent needs with a more systematic talent acquisition, development and retention strategy, and a concomitant demand for the software to support this systematic approach.
• A holistic view of the employee – A big-picture view of talent, including their skills, tenure, development, likelihood to leave, and performance, in an easily accessed, integrated whole to better understand skills gaps, and better mobilize talent to where it is most needed, most rapidly.
• Increased focus on mobile devices – The ubiquity of mobile device software that is used in all areas of human capital management today, and that has spurred the already-fast-paced smartphone and tablet adoption in the workplace.
• Software-as-a-Service – SaaS software that supports "cloud-born" talent management suites with rapid deployments, rapid time-to-productivity and return on investment and continual functional upgrades.
• Demand for a unified technology platform to support the enterprise – Organizations initiating an enterprise-wide talent management strategy seek technology solutions that integrate multiple talent-related functions. These may be any combination of onboarding, goal-setting, performance management, learning, compensation and succession.

The research includes facts and statistics about the market, information on trends driving the creation and adoption of integrated talent suites, market growth by geography, and market segments by size of client. It also includes vendor profiles and comparisons, and market share by vendor. Based on the research, buyers are moving to integrated suites for a variety of reasons, including talent management demand for improved user experience, better and faster technologies, integration of standalone talent management applications, and improved talent analytics.

"Software providers increasingly are integrating the talent-related functions with core HR systems – those systems that manage compliance, benefits and payroll – as they move toward creating a new talent-centric employee system of record," said Katherine Jones, vice president, Human Capital Management Technologies Research, Bersin by Deloitte, Deloitte Consulting LLP. "However, in the race for market share, the vendor community has produced products notable for two reasons: they are more like consumer products in their appearance and intuitiveness, and they are increasingly commoditized – that is, they primarily do all the same thing. As any gaps in functionality narrow, customers likely will gravitate to providers known for the solution that addresses their most immediate pain point, and that sale will determine the suite they choose."

With the move to commoditized products, Jones added, "great customer service will likely prove an important differentiator."

To learn more, please register to join Dr. Katherine Jones for her online webinar, "The Nirvana of Optimized Talent: The Talent Management Suite Market Today,"  2:00 p.m. EDT/19:00 BST, August 5, 2014.

Those interested in learning more about Bersin by Deloitte or its WhatWorks® membership may email [email protected] or call +1 510 251 4400.

About Bersin by Deloitte

Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. Our WhatWorks® membership gives Fortune 1000 and Global 2000 HR professionals the information and tools they need to design and implement leading practice solutions, benchmark against others, develop their staff, and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent and learning strategies. For more information, please visit http://www.deloitte.com/bersin or http://www.bersin.com.

As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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