Boston, Mass., -- Yankee Group has announced that the worldwide talent management market is experiencing exponential growth and will reach more than $4.0 billion in revenue by 2009. In 2005, many leading vendors experienced growth rates of 50 percent to 100 percent, with some vendors adding more than 100 new clients. This growing market reflects how the enterprise market is changing. As the need for developing competitive human capital increases, the market will remain strong. New service delivery models, including on-demand software delivery and the continued adoption of HR outsourcing, are also key contributors to market success.
According to Fueled by Strong Demand, Worldwide Talent Management Market Will Surpass $2.3 Billion in 2006, a Yankee Group Report published on April 5, 2006, several factors are fueling the growth of the talent management market including increased focus on retaining talent, continued convergence of organizational expertise, renewed focus on acquiring and managing talent, and the mobilization of the global workforce. The talent management landscape is highly fragmented and comprises vendors of all sizes and capabilities. However, Yankee Group predicts accelerated consolidation during the next 2 to 3 years because of market maturation.
"The nascent talent management market will continue to experience consolidation, defining market leaders, segments and trends," said Jason Corsello, Yankee Group Business & IT Services program manager. "As the workforce becomes increasingly mobile and global, companies that invest in talent management solutions and examine it from a worldwide perspective will reap tremendous benefits for their business organization and operations."
Yankee Group defines the talent management market as including recruitment management, performance management, compensation management, succession management, learning management and other (knowledge management, self-service, analytics and reporting). However, the performance and succession management segments are spurring the market. The future of the talent management market will continue to be influenced by the rapid acceptance of the on-demand model, ongoing vendor mergers and acquisitions, an expanding focus on global services and support with strong international capabilities.