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IDC MarketScape: Worldwide Integrated Talent Management 2012

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The content for this paper is excerpted from the IDC Competitive Analysis Report, …

The content for this paper is excerpted from the IDC Competitive Analysis Report,
IDC MarketScape: Worldwide Integrated Talent Management 2012 Vendor Analysis.
This research is a quantitative and qualitative assessment of the characteristics that explain a vendor's success in the
marketplace and help anticipate its ascendancy.

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  • 1. EXCERPT IDC MarketScape: Worldwide Integrated Talent Management 2012 Vendor Analysis Lisa Rowan IN THIS EXCERPT The content for this paper is excerpted from the IDC Competitive Analysis Report, IDC MarketScape: Worldwide Integrated Talent Management 2012 Vendor Analysis,www.idc.com by Lisa Rowan (Doc # 234365). All or parts of the following sections are included in this Excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook, Essential Guidance, and Synopsis. Figures 1 and 3 are also included.F.508.935.4015 IDC OPINION This IDC study represents a vendor assessment of the integrated talent management market through the IDC MarketScape model. This research is a quantitative andP.508.872.8200 qualitative assessment of the characteristics that explain a vendors success in the marketplace and help anticipate its ascendancy. The evaluation is based on a comprehensive and rigorous framework that assesses vendors relative to the criteria and one another and highlights the factors expected to be the most influential to success in the market, both short and long term. Key findings include:Global Headquarters: 5 Speen Street Framingham, MA 01701 USA  The year was dominated by acquisitions and market consolidation, leaving fewer pure-play talent management vendors than a year ago. There were large, high- profile acquisitions such as SAPs acquisition of SuccessFactors and Oracles acquisition of Taleo and best-of-suite actions such as SuccessFactors acquisition of Plateau. Some acquisitions reflected building out of a full functional portfolio, while others demonstrated the desire to focus on an end-to-end HCM solution that bundles talent with core. Regardless the reason, it is universally apparent that talent represents the hottest submarket in HCM.  While recruiting is seen as the most important talent function according to IDCs recent survey of 512 HR executives, all of the functions were shown to be important to respondents. This escalating level of importance is driving greater demand for integration among the talent functions and in turn is leading to greater interest in solutions that are part of an integrated suite from a single vendor.  Vendors did well, with all falling into either the Major Player or the Leader categories. Areas of strength include the growing comprehensiveness of portfolios with many vendors offering solutions across the board. IDCs survey indicated that most buyers are satisfied with the depth of capability offered and the timing and appropriateness of product releases. Buyers expressed less satisfaction with integration with core HR. Such integration is becoming more important to buyers. Filing Information: May 2012, IDC #234356e : Excerpt
  • 2. IN THIS STUDYThis IDC study represents a vendor assessment of the integrated talent managementmarket through the IDC MarketScape model. This assessment discusses bothquantitative and qualitative characteristics that explain a vendors success in thisemerging market.This MarketScape covers a variety of vendors participating in the integrated talentmanagement market. The evaluation is based on a comprehensive and rigorousframework that assesses vendors relative to the criteria and one another andhighlights the factors expected to be the most influential to success in the market,both short and long term.This study is made up of two sections. The first part is a definition of whatcharacteristics IDC believes lead to success in the integrated talent managementmarket. These characteristics are based on buyer and vendor surveys and keyanalyst observations of best practices.The second part of this study is a visual presentation of multiple vendors into a singlebubble chart format. This format concisely displays the observed and quantifiedscores of the reviewed vendors.The document concludes with IDCs essential guidance to support continued growthand improvement of these vendors offerings. This document replaces IDCMarketScape: Worldwide Integrated Talent Management 2011 Vendor Analysis (IDC#226834, February 2011).Vendor information, including versions covered and ownership, is as of December 31,2011.MethodologyIDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailorthe range of standard characteristics by which vendors are measured throughstructured discussions, surveys, and interviews with market leaders, participants, andend users. Market weightings are based on user interviews, buyer surveys, and theinput of a review board of IDC experts in each market. IDC analysts base individualvendor scores, and ultimately vendor positions, on the IDC MarketScape, detailedsurveys and interviews with the vendors, publicly available information, and end-userexperiences in an effort to provide an accurate and consistent assessment of eachvendors characteristics, behavior, and capability.IDC conducted an end-user survey of 512 HR executives of firms with 500+employees that completed in December 2011. Included in the survey were specificquestions about vendors covered in this analysis. Questions included satisfaction witha variety of factors including but not limited to depth and completeness of solution,appropriateness of delivery model, comfort with upgrade release schedules,integration, and customer service.2 #234356e ©2012 IDC
  • 3. SITUATION OVERVIEWIDC defines talent management as those functions that serve to attract, develop,reward, and retain the workforce. Made up of a variety of functions, talentmanagement includes the areas of recruiting and staffing, learning and development,performance management, compensation management, and career and successionplanning, all supported by a base of competency management and assessment (seeFigure 1).IDC depicts talent management as a continuous circle to represent theinterdependency of the various functions.This MarketScape focuses on the market for solutions and services serving all of thetalent management functions mentioned in Figure 1 through a single integrated end-to-end offering. While talent management is still a young market, it is beginning tomature, with greater market penetration. It is a market that has gained and continuesto gain a lot of attention and is of interest to both buyers and suppliers. Subsequentsections of this document offer definitions and the characteristics IDC identifies asimportant for success in this market.FIGURE 1Human Resources Value Cycle Recruiting Services Learning Staffing and and Contingent Development Labor Services Services Employee The Records Performance and Human Resources Management Succession Services Management Value Cycle Services Wealth Benefit Payroll Services Services Health Benefit ServicesSource: IDC, 2012©2012 IDC #234356e 3
  • 4. FUTURE OUTLOOKIDC MarketScape Integrated TalentManagement Market Vendor AssessmentThe IDC vendor assessment for the integrated talent management market representsIDCs opinion on which vendors are well positioned today through current capabilitiesand which are best positioned to gain market share over the next few years.Positioning in the upper right of the grid indicates that vendors are well positioned togain market share. For the purposes of discussion, IDC divided potential key strategymeasures for success into two primary categories: capabilities and strategy.IDCs most critical criteria for positioning on the y-axis and x-axis are as follows: Positioning on the y-axis reflects the vendors current capabilities and menu of services and how well aligned it is to customer needs. The capabilities category focuses on the capabilities of the company and product today, here, and now. Under this category, IDC analysts look at how well a vendor is building/delivering capabilities that enable it to execute its chosen strategy in the market. Positioning on the x-axis or strategy axis indicates how well the vendors future strategy aligns with what customers will require in three to five years. The strategy category focuses on high-level strategic decisions and underlying assumptions about offerings, customer segments, business, and go-to-market plans for the future, in this case defined as the next three to five years. Under this category, analysts look at whether or not a suppliers strategies in various areas are aligned with customer requirements (and spending) over a defined future time period.Figure 3 shows each vendors position in the vendor assessment chart. The numberof client lives served by two or more major talent functions (recruiting, learning,compensation, performance management, and succession/career planning) isindicated by the size of the bubble, and a (+), (-), or () icon indicates whether or notthe vendor is growing faster, slower, or even with overall market growth. The marketfor integrated talent management is still maturing, so actual market size is anestimate and therefore is also estimated. Estimated growth of the market based uponthe vendors included in this analysis stood at 41% for 2010 over 2009, an amazingfigure given the overall lack of economic growth elsewhere. Thus a (-) does not meanlack of growth but rather merely that a particular vendors growth fell below the overallaverage.4 #234356e ©2012 IDC
  • 5. FIGURE 3IDC MarketScape Integrated Talent ManagementVendor AssessmentSource: IDC, 2012Vendor Summary AnalysisThis section briefly explains the key observations that resulted in a vendors positionin the vendor assessment graph. While each vendor was evaluated against each ofthe strategy and capability characteristics (refer back to Tables 1 and 2), thedescriptions here provide a brief excerpt of the findings that represent the vendorsscore.A number of scores are taken directly from the mean of clients responses to IDCsDecember 2011 survey of 512 HR executives.It is worth noting that because of the maturity of the market and the various vendorofferings, there are no vendors in the contender or the participant categories — all areMajor Players or Leaders.©2012 IDC #234356e 5
  • 6. Vendors are listed in alphabetical order by their name/ownership in place as ofDecember 31, 2011.PeopleSoft/OracleFor the purposes of this analysis, IDC has combined Oracles HCM solutionsinformation — Oracle E-Business Suite (EBS) and Oracle PeopleSoft Enterprise;however, it is important to note that each solution offers talent managementcapabilities as part of its product portfolios. Oracle Fusion Applications are notanalyzed in this study but will likely be included in the 2013 study. Both Oracle EBSand PeopleSoft Enterprise offer solutions to all of the major talent functions andbenefit from integration with their respective HR systems of record. Oracle continuesto enhance the talent capabilities in both EBS and PeopleSoft.The combined Oracle and PeopleSoft moved up to the Leader category in thisanalysis in part because of high scores from clients. Strengths continue to includestrong integration with the respective HR systems, clear vendor viability, global reach,and installed base of HRIS clients. Not surprisingly, Oracle received highest marks fortalent integration with core HR. Challenges in messaging may come as Fusioncontinues to gain traction and the assets of newly acquired Taleo are blended into theproduct road map.See also Taleo below.Oracle is publicly traded on Nasdaq: ORCL.Taleo (Now Acquired by Oracle)Founded in 1999, Taleo has staked a leadership claim in the talent acquisitionsystems and services market. As have other vendors in the market, it broadened itsreach into the talent management market initially with an organically developedperformance suite. It then added compensation capabilities through its acquisition ofWorldwide Compensation, a firm it had invested in and partnered with previously. InSeptember 2010, Taleo completed filling out the five pillars of talent management byacquiring Florida-based Learn.com. Similar to its arrangement with WorldwideCompensation, Taleo had previously partnered with Learn.com. Its good thatLearn.com does not have other offerings that compete with existing Taleocapabilities. Taleo has a good track record of integration, so synthesizing Learn.cominto the fold is under way. Taleo has separate dedicated solutions in recruiting,performance management, and compensation focused on the unique needs of bothlarge enterprise customers with 3,000+ employees and SMB customers with fewerthan 3,000 employees.Taleo expanded its European presence in 2011, both organically and through theacquisition of Jobpartners in June 2011. The acquisition doubled Taleos customerbase and workforce in Europe.Taleo is again a market Leader in this analysis, with strengths in many areasincluding depth in capability of the individual talent functions, a robust partnerecosystem, strong brand recognition, global reach, and a track record of innovativeR&D. Taleo had good scores in functionality from its clients.6 #234356e ©2012 IDC
  • 7. Taleo is publicly traded on Nasdaq: TLEO until such time that the Oracle acquisitionis completed.ESSENTIAL GUIDANCEThis MarketScape finds that the field has tightened even further since the prioranalysis. Largely, uniform progress was made by the vendors covered in thisanalysis, some through acquisition and some through organic development.Additionally: The year was dominated by acquisitions and market consolidation, leaving fewer pure-play talent management vendors than a year ago. There were large, high- profile acquisitions such as SAPs acquisition of SuccessFactors and Oracles acquisition of Taleo and best-of-suite actions such as SuccessFactors acquisition of Plateau. Some acquisitions reflected building out of a full functional portfolio, while others demonstrated the desire to focus on an end-to-end HCM solution that bundles talent with core. Regardless the reason, it is universally apparent that talent represents the hottest submarket in HCM. While recruiting is seen as the most important talent function according to IDCs recent survey of 512 HR executives, all of the functions were shown to be important to respondents. This escalating level of importance is driving greater demand for integration among the talent functions and in turn is leading to greater interest in solutions that are part of an integrated suite from a single vendor. Vendors did well with all falling into either the Major Player or the Leader categories. Areas of strength include the growing comprehensiveness of portfolios with many vendors offering solutions across the board. IDCs survey indicated that most buyers are satisfied with the depth of capability offered and the timing and appropriateness of product releases. Buyers expressed less satisfaction with integration with core HR. Such integration is becoming more important to buyers.LE ARN MORERelated Research The Four Pillars and the HR Executive (IDC #233006, February 2012)©2012 IDC #234356e 7
  • 8.  Talent Management at the Crossroads: Think Process Rather than Technology (IDC #230094, August 2011) Worldwide and U.S. HR Management Services 2011–2015 Forecast (IDC #227951, April 2011) Worldwide and U.S. Talent Acquisition and Staffing Services 2011–2015 Forecast: Emerging from the Doldrums (IDC #227596, April 2011) U.S. Business Process Outsourcing Trends — Shifting Gears (IDC #226987, March 2011) 2011 Human Resources BPO Services Buyer Needs with Market Overview (IDC #226949, February 2011) IDC MarketScape: Worldwide Integrated Talent Management 2011 Vendor Analysis (IDC #226834, February 2011) Top HR BPO Contracts Revisited: Where They Stand Now (IDC #226142, December 2010) Worldwide and U.S. Corporate eLearning 2010–2014 Forecast: Changing Patterns of Consumption (IDC #224504, August 2010) U.S. Employee Benefits Outsourcing Services 2010–2014 Forecast and Analysis (IDC #224573, August 2010) CMO Advisory Best Practices Series: Talent Management in the Marketing Function (IDC #224210, July 2010) U.S. Payroll Outsourcing Services 2010–2014 Forecast and Analysis (IDC #223865, June 2010) Putting Workforce Planning to Work in Oil and Gas: A Case Study (IDC #223659, June 2010) Worldwide Workforce Performance Management 2010–2014 Forecast (IDC #223407, May 2010) Worldwide and U.S. HR Management Services 2010–2014 Forecast (IDC #222710, April 2010) Worldwide and U.S. Talent Acquisition and Staffing Services 2010–2014 Forecast: Stormy Seas (IDC #222528, March 2010) Worldwide Outsourcing Services 2010 Top 10 Predictions: Moving from a World of "Lift and Shift" to "Innovate and Own" (IDC #221901, February 2010)8 #234356e ©2012 IDC
  • 9. SynopsisThis IDC study represents a vendor assessment of the integrated talent managementmarket through the IDC MarketScape model. This assessment discusses bothquantitative and qualitative characteristics that explain success in this market. ThisMarketScape covers a variety of vendors participating in the integrated talentmanagement market. The evaluation is based on a comprehensive and rigorousframework that assesses vendors relative to the criteria and one another andhighlights the factors expected to be the most influential for success in the market, inboth the short term and the long term."The vendors serving the market for integrated talent management have advancedtheir offerings in features and functions through both organic development andacquisition," says Lisa Rowan, program director, HR, Talent, and Learning Strategiesfor IDC. "Through buyer research, IDC sees that buyers are generally pleased withthe depth of their vendor offerings; however, they are seeking better integrationamong the functions and with core HR."Copyright NoticeThis IDC research document was published as part of an IDC continuous intelligenceservice, providing written research, analyst interactions, telebriefings, andconferences. Visit www.idc.com to learn more about IDC subscription and consultingservices. To view a list of IDC offices worldwide, visit www.idc.com/offices. Pleasecontact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) orsales@idc.com for information on applying the price of this document toward thepurchase of an IDC service or for information on additional copies or Web rights.Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved.©2012 IDC #234356e 9