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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 TALENT MANAGEMENT SOFTWARE MARKET By Solution (Talent Acquisition, Workforce Planning, Learning, Compensation, and Performance Management), By Services, By Deployment Mode, By Organization Size, By Verticals, and By Regions GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2015 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, describe, and forecast the global Talent Management Software (TMS) market on the basis of solutions and services, deployment type, organization size, industry vertical, and region To provide a detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, industry-specific challenges, and burning issues) To strategically analyze each submarket with respect to individual growth trends and contribution toward the overall market To analyze the opportunities in the market for stakeholders and details of a competitive landscape for market leaders To forecast the revenue of market segments with respect to five main regions, namely, North America (NA), Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America (LA) To strategically profile key players and comprehensively analyze their market shares, determine their core competencies, and draw a competitive landscape for the market To track and analyze competitive developments, such as partnerships and collaborations, mergers and acquisitions, and new product developments in the TMS market 1.2 MARKET DEFINITION The Human Resources (HR) industry is undergoing transformational changes due to the evolving issues of hiring proficient talent, declining employee engagement rate, and high attrition rate. To overcome such issues, HR professionals are adopting effective tools to manage their workforce. TMS, also known as workforce planning software, refers to the integrated tool set that manages the entire lifecycle of an employee starting from hire to retire. All HR tools such as workforce planning, learning management, compensation management, talent acquisition, and performance management acts as a unified data model which provides a holistic and analytical view of employee databases. The efficiency of these tools increases manifolds when integrated with software such as Human Resources Management System (HRMS), Enterprise Resource Planning (ERP), Applicant Tracking System (ATS), and various other employee database applications. 1.3 MARKET SCOPE The market size estimation is done on the software market which includes software subscriptions, new licenses, and installations. The software includes learning management, workforce planning management, compensation management, talent acquisition, and performance management. It also includes the services associated with the software such professional services, support and consulting, and training and education. The aggregate of software and services provides the total market size of TMS. 2

5 1.3.1 MARKET COVERED This research report categorizes the TMS market into the following segments: Global TMS Market, By Solutions Workforce Planning Learning Management Compensation Management Talent Acquisition Performance Management Global TMS Market, By Services Professional Services Support and Maintenance Training and Education Global TMS Market, By Deployment Mode On-Premises On-Demand (Cloud) Global TMS Market, By Organization Size Small and Medium Businesses (SMBs) Large Businesses Global TMS Market, By Vertical Banking, Financial Services, and Insurance (BFSI) Healthcare IT and Telecom Retail Manufacturing Education Government Media and Entertainment Others (automotive, energy and power, and transportation and logistics) Global TMS Market, By Region NA Europe APAC MEA LA 3

6 1.3.2 YEARS CONSIDERED Historical Year: 2012 Base Year: 2013 Estimated Year: 2014 Projected Year: CURRENCY The base currency used in the report is U.S. dollars, with market size indicated only in $million. For companies that reported their revenues in U.S. dollars, their annual reports were used as the source For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value to U.S. dollars 1.5 LIMITATIONS The study does not include the revenue from hardware required for TMS installation. 1.6 STAKEHOLDERS Value-Added Resellers (VARs) Talent Management Software Providers Research Organizations Consulting Companies Application Service Provider Cloud Platform Providers Investors and Venture Capitalists Technology Providers Suppliers, Distributors, and Contractors End users/enterprise Users 4

7 2 EXECUTIVE SUMMARY Companies across all domains are in the constant need of good quality employees with talent and aptitude for the jobs. Talent management has become an integral part of businesses today. Talent management comprises various functionalities ranging from scouting, identifying, acquiring newer talents from the talent pools as well as management and retaining the existing talent quotient in the companies. This talent quotient is nothing but the employees and potential employees. Before the technological advents of today, talent management was a core HR function which followed traditional methodologies in order to hire and manage employees. Technological advancements have led to the genesis of the TMS market which provides solutions and services that enable the companies with easy and efficient talent management methods to provide the most accurate results. Furthermore, these solutions and services help the companies to gather and analyze candidate and employee information in order to gauze it on parameters specific to the company, thus making it easier to appoint the right person for the right task. The major factor driving the TMS market has been analyzed to be the increased need for real-time employee engagement in companies throughout all domains. Furthermore, the rising uses of social platforms have led to the integration of talent management functionalities with these platforms. These capabilities further boost the market for TMS. The TMS market has been showing a high growth trend in the recent years which is expected to continue during the forecast period. With globalization and expansions of business horizon in every sector, there is an increasing need for more and more talent base which further fuels the TMS market. However, organizations still prefer the traditional methodologies for talent management due to a severe lack of awareness about the technologies. This acts as a hurdle for the market growth. In this report, an in-depth study of the market trends, market sizing, competitive mapping, and market dynamics of the TMS market has been provided. The trends, drivers, and opportunities in the TMS market distinctly indicate noteworthy growth in the next years. The TMS market is broadly segmented into software and services. The TMS market is further segmented by services into professional services, training and education, and support and maintenance; by deployment type into on-premises and cloud; by user type into SMBs and large enterprise; and by region into NA, Europe, APAC, MEA, and LA. Also, the report provides segmentation on the basis of various industry types such as BFSI, healthcare, retail, and others. 5

8 FIGURE 1 EVOLUTION OF TMS Introduction to talent management Automated functions Use of ATS Single HR module Introduction of HR modules Integrated modules Introduction of cloud deployment Shift from on premise to cloud Integrated TMS suite with HCM system Between Before 1990s Traditional methods Manual payroll Recruitment through advertisements Early 2010s and Future of TMS Transformed TMS Development of predictive analytics Social collaboration Cloud deployment dominates Mobile apps for HR Usage of mobile devices Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis The concept of talent management is derived from Human Resource Management (HRM), as people (human) are the most important asset who derives the growth of an organization. Hence, to lay focus on the lifecycle of people, a separate concept was introduced known as TMS in 1990s, which takes care of the entire lifecycle of employees from hire to retire. Before 1990s: In this phase, the core HR manual systems were practiced, here organizations rely on traditional methods such as recruitment through newspaper advertisement, screening from paper resumes, manual payroll systems, use of manual entry in ATS, online resumes. Reporting is majorly focused on HR record keeping. 1990s 2010: This phase gave birth to the concept of talent management where HR functions were automated and HR became a recognized profession. In this phase, applications run individually such as recruitment management, compensation management, and other modules. After the advent of automated applications, vendors started providing integrated TMS suites with capability to deploy these solutions on cloud. Organizations can leverage the benefits of integrated HR applications with HCM systems till now: During this phase, focus is shifted toward employment branding and employee engagement. This stage includes features such as availability of unified database for accessing all applications, collaboration with social platforms, predominant usage of predictive analytics and reporting tools, mobile apps for HR, surge of mobile platforms, and paradigm shift from on-premises to cloud deployment. 6

9 The table given below highlights the market size and Year-Over-Year (Y-O-Y) growth rate of the global TMS market. The global TMS market is expected to grow from $ million in 2014 to $ million by 2019, at an estimated Compound Annual Growth Rate (CAGR) of %. The global TMS market is expected to exhibit a Y-O-Y growth rate of % for the period TABLE 1 GLOBAL TMS MARKET, ($MILLION, Y-O-Y %) Global TMS Market CAGR ( ) Market Size Y-O-Y Source: Secondary literature, Expert Interviews and MarketsandMarkets Analysis FIGURE 2 TMS MARKET SIZE, BY VERTICAL ( ) CAGR% BFSI Healthcare IT and Telecom Manufacturing Retail Education Government Others* Media and entertainment $Million Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis Others* include automotive, energy and power, and transportation and logistics 7

10 FIGURE 3 GLOBAL TMS MARKET SIZE, BY SOLUTIONS ( ) Market Size $ Million Demand growth CAGR %, Workforce Planning Learning Management Talent Acquisition Performance Management Compensation Management Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis FIGURE 4 GLOBAL TMS MARKET SHARE, 2014 Market Share = % CAGR = % Market Share = % CAGR = % Market Share = % CAGR = % Market Share = % CAGR = % Market Share = % CAGR = % North America Europe Asia-Pacific Middle East and Africa Latin America Source: Investor Presentations, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis 8

11 NA accounted for the largest market share, i.e., % of the global TMS market in 2014, followed by Europe. The overall TMS market is quite fragmented due to the presence of small and big players in the market. Being upfront in technological arena, this region is always on the top in terms of early technology adoption. This is the reason of its contribution toward the maximum market size. Although all the regions are growing at good pace, but APAC is expected to grow at a considerably high rate in the next years, with a CAGR of %. Growing awareness and expected improved economy of major developing countries such as India, Singapore, and Malaysia are the major driving factors of the TMS market in APAC. The key players involved in the TMS ecosystem are Oracle (Taleo), IBM (Kanexa), SAP (SuccessFactors), Cornerstone OnDemand, Saba Software, Lumesse, Skillsoft (SumTotal Systems), PeopleFluent, Talentsoft, Halogen Software, and many others. 9

12 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. 10

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