MagicQuadrantforTalentManagement

Suites
12June2014ID:G00260027
Analyst(s):RonHanscome,JeffFreyermuth,YvetteCameron

VIEWSUMMARY
ThisupdatedMagicQuadrantassessesthemarketfortalentmanagementsuites,whichhelp
enterprisesmanagethekeyprocessesofplantosource,acquiretoonboard,performtorewardand
assesstodevelop.

MarketDefinition/Description
Thisdocumentwasrevisedon18July2014.Thedocumentyouareviewingisthecorrectedversion.
Formoreinformation,seetheCorrectionspageongartner.com.
Talentmanagementsuitesareanintegratedsetofapplications,includingworkforceplanning,talent
acquisitionandonboarding,performanceappraisal/assessment,goalsmanagement,career
development,successionmanagement,learningmanagementandcompensationmanagement.These
functionalcomponentsalignwiththekeyhumancapitalmanagement(HCM)processesofplanto
source,acquiretoonboard,performtorewardandassesstodevelop.
Historically,HRleadershadtopurchaseseparatefunctionalcomponentsiftheywantedbestofbreed
softwaretosupportaparticulartalentmanagementprocess,suchastalentacquisitionor
compensation.However,offeringsfromthevendorcommunityhavecontinuedtoexpandbeyondtheir
capabilitiesoforigintocovermoretalentrelatedfunctionsconcurrently,ITanduserfrustrationwith
thecostandeffortofintegratingmultiplenichesolutionshasgrown.Asaresult,thetalent
managementsuitehasbecomeaviableoption.
Whilesomeenterprisescontinuetopursueabestofbreedstrategybyimplementingpointsolutionsfor
talentmanagement,Gartnerresearch(clientinquiriesandformalsurveys)indicatethatthenumberof
customersadoptingthreeorfourmodulesfromasinglevendorcontinuestogrow,andthatcustomers
areincreasinglypredisposedtobuymoremodulesfromasinglevendor,eventhoughthesemodules
tendtobedeployedovermultipleprojectimplementationphases.Theoverallmarketfortalent
managementsolutions(licenseandsubscriptionsoftwareonly)isestimatedat$3.3billion,and
continuestogrowatapproximately10%annually.Thesefindingsreinforcethevibrantnatureand
continuedevolutionofthetalentmanagementsuitemarket,andalsosupporttheemergenceof
"postmodernERP"thedeconstructionoftheallencompassingERPsuiteintoamorefederated,
looselycoupledenvironment(see"DevelopaStrategicRoadMapforPostmodernERPin2013and
Beyond").
Note:Allmentionsof"surveydata"intheVendorStrengthsandCautionssectionrefertothe
comprehensivecustomerreferencesurveycompletedby191referencesasapartofthe2014talent
managementsuiteMagicQuadrantprocess.Thecenterpieceofthesurveyaskedcustomerstorate
boththeimportanceandlevelofsatisfactionwiththefollowingkeycriteria:
ProductSatisfaction:
Productquality
Systemperformance
Easeofuseforprofessionalusers
Easeofuseforemployeesandmanagers
Systemadministrationandconfiguration
Workflow
Reportingcapabilities
Integrationwithotherapplications
Abilitytocustomizeorconfiguretheapplication
Documentationwiththesolution
Trainingmadeavailable
VendorCustomerRelationshipSatisfaction:
Experiencethroughthesalesprocess

EVALUATIONCRITERIADEFINITIONS
AbilitytoExecute
Product/Service:Coregoodsandservicesofferedby
thevendorforthedefinedmarket.Thisincludes
currentproduct/servicecapabilities,quality,feature
sets,skillsandsoon,whetherofferednativelyor
throughOEMagreements/partnershipsasdefinedin
themarketdefinitionanddetailedinthesubcriteria.
OverallViability:Viabilityincludesanassessmentof
theoverallorganization'sfinancialhealth,thefinancial
andpracticalsuccessofthebusinessunit,andthe
likelihoodthattheindividualbusinessunitwillcontinue
investingintheproduct,willcontinueofferingthe
productandwilladvancethestateoftheartwithinthe
organization'sportfolioofproducts.
SalesExecution/Pricing:Thevendor'scapabilitiesin
allpresalesactivitiesandthestructurethatsupports
them.Thisincludesdealmanagement,pricingand
negotiation,presalessupport,andtheoverall
effectivenessofthesaleschannel.
MarketResponsiveness/Record:Abilitytorespond,
changedirection,beflexibleandachievecompetitive
successasopportunitiesdevelop,competitorsact,
customerneedsevolveandmarketdynamicschange.
Thiscriterionalsoconsidersthevendor'shistoryof
responsiveness.
MarketingExecution:Theclarity,quality,creativity
andefficacyofprogramsdesignedtodeliverthe
organization'smessagetoinfluencethemarket,
promotethebrandandbusiness,increaseawareness
oftheproducts,andestablishapositiveidentification
withtheproduct/brandandorganizationintheminds
ofbuyers.This"mindshare"canbedrivenbya
combinationofpublicity,promotionalinitiatives,
thoughtleadership,wordofmouthandsalesactivities.
CustomerExperience:Relationships,productsand
services/programsthatenableclientstobesuccessful
withtheproductsevaluated.Specifically,thisincludes
thewayscustomersreceivetechnicalsupportor
accountsupport.Thiscanalsoincludeancillarytools,
customersupportprograms(andthequalitythereof),
availabilityofusergroups,servicelevelagreements
andsoon.
Operations:Theabilityoftheorganizationtomeetits
goalsandcommitments.Factorsincludethequalityof
theorganizationalstructure,includingskills,
experiences,programs,systemsandothervehicles
thatenabletheorganizationtooperateeffectivelyand
efficientlyonanongoingbasis.
CompletenessofVision
MarketUnderstanding:Abilityofthevendorto
understandbuyers'wantsandneedsandtotranslate
thoseintoproductsandservices.Vendorsthatshow
thehighestdegreeofvisionlistentoandunderstand
buyers'wantsandneeds,andcanshapeorenhance
thosewiththeiraddedvision.
MarketingStrategy:Aclear,differentiatedsetof
messagesconsistentlycommunicatedthroughoutthe
organizationandexternalizedthroughthewebsite,
advertising,customerprogramsandpositioning
statements.
SalesStrategy:Thestrategyforsellingproductsthat
usestheappropriatenetworkofdirectandindirect
sales,marketing,service,andcommunicationaffiliates
thatextendthescopeanddepthofmarketreach,
skills,expertise,technologies,servicesandthe
customerbase.
Offering(Product)Strategy:Thevendor'sapproach
toproductdevelopmentanddeliverythatemphasizes

Initialimplementationanddeployment
Handoverfromimplementationtosupport
Ongoingcommunicationandsupport
Additionaldeploymentsandupgrades
Aftersalescare
Accountmanagement
Enhancementrequestprocesses

MagicQuadrant
Figure1.MagicQuadrantforTalentManagementSuites

Source:Gartner(June2014)

VendorStrengthsandCautions
AdrenalineSystems
AdrenalineSystemsispartofPolarisFinancialTechnology,amultinationalsoftwarecompany
headquarteredinIndia(Polarisiswellknownforbankingsoftware).Adrenalinwasfoundedin2002,
anditstalentmanagementcapabilitieswerelaunchedin2006.TheproductisbuiltonaMicrosoft
platform(.NET4.5)andthetalentmanagementcomponentisnotsoldstandalone,butaspartofa
broaderHCMsuite.Thevendorhasmorethan700HCMcustomers,androughly400usethetalent
managementmodules.Thevastmajorityofdeploymentsareonpremises(over80%),butSaaS
deploymentshaveincreasedduringthepast18months.Thesolutionhasaflexibleworkflowengine,a
simpleuserexperienceandstraightforwardfunctionality,andthevendorhasworkedtoaddmobile
support,aswellassocialrecruitingcapabilities,totheproductinthepastyear.Adrenalinhasastrong
marketpresenceinIndia,bothwithIndiancompaniesandwithmultinationalsoperatinginIndia.Ithas
alsohadsuccessintheUnitedArabEmirates(UAE),aswellasinmostofSoutheastAsia.Thesolution
issuitableforcompaniesseekinganintegratedHCMandtalentmanagementofferingforIndia,the
MiddleEastandSoutheastAsia.
Strengths
Localknowledge,salesreachandonpremisesdeliverymeanthatAdrenaliniswellpositionedin
theIndianmarket.
Aflexibleworkflowandscreenbuilderenablecustomerstoeasilyaddandadaptfunctionality,and
theofferinghasgoodinternalsocialnetworkingcapabilities.
Thesolutionispricedwellbelowmanyinternationalcompetitors.
Cautions

differentiation,functionality,methodologyandfeature
setsastheymaptocurrentandfuturerequirements.
BusinessModel:Thesoundnessandlogicofthe
vendor'sunderlyingbusinessproposition.
Vertical/IndustryStrategy:Thevendor'sstrategy
todirectresources,skillsandofferingstomeetthe
specificneedsofindividualmarketsegments,including
verticalmarkets.
Innovation:Direct,related,complementaryand
synergisticlayoutsofresources,expertiseorcapitalfor
investment,consolidation,defensiveorpreemptive
purposes.
GeographicStrategy:Thevendor'sstrategytodirect
resources,skillsandofferingstomeetthespecific
needsofgeographiesoutsidethe"home"ornative
geography,eitherdirectlyorthroughpartners,
channelsandsubsidiariesasappropriateforthat
geographyandmarket.

Adrenalindoesn'thavethefunctionaldepthofitsinternationalcompetition(forexample,itdoesn't
yethaveanycustomersusingitssuccessionplanningfunctionality,anditslearningcapabilityis
limitedtoinstructorledtrainingregistrationandtracking).
Overallproductsatisfactionscoredslightlybelowaverage,withreferencecustomerslesssatisfied
withproductqualityandsystemadministration/configurationthanthereferenceset.Easeofuse
forprofessionalusersalsoscoredsomewhatbelowaverage,whichisinlinewithfeedback
receivedfromGartnerclientinquiries.Adrenalinhasengagedusabilityexpertstoattemptto
improvetheuserinterfaceinupcomingreleases.
Overallvendorcustomerrelationshipsatisfactionalsoscoredslightlybelowaverage,comparedto
theoverallreferencesetcustomerswerelesssatisfiedwithinitialimplementation/deployment
andaftersalescarethantheirreferencepeersacrossallvendors.
Adrenalindoesnotyetsatisfycriticallegislativeandregulatorytalentmanagementcompliance
requirementsinEuropeandNorthAmerica,whichislikelytolimitadoptioninthesemarkets.

CornerstoneOnDemand
CornerstoneOnDemand,foundedin1999,isapubliccompanybasedinSantaMonica,California.The
vendorhasoperationsin13countriesacrossNorthAmerica,Europe,AustraliaandtheAsia/Pacific
region.Beginningasalearningmanagementpointsolution,CornerstoneOnDemand'sproductofferings
haveevolvedtoincluderecruiting,performance,succession,compensationandlearning,alongwith
onboardingandcorporatesocialnetworkingsolutions,allnativelydevelopedonacommontechnology
stack.ThesolutionsareexclusivelyofferedthroughaSaaSmodel.Thevendorcontinuestoexecute
well,asisreflectedinitsstrongyearoveryeargrowth.Ithasover1,600customers(plusanadditional
600clientsusingitsCornerstoneGrowthEditionofferingforsmallbusiness,whichisanacquired,
separateplatform)andgeneratesmorethan$185millioninannualrevenue.CornerstoneOnDemand
hasshownitssuitabilityfororganizationsofallsizes,includinglarge,globalmultinationalorganizations.
Strengths
Thevendoroffersanativelydevelopedsuitewithahighdegreeofconfigurability,bestinclass
learningandperformance,strongmobilesupport,andgooduseofsocialcollaborationandgame
mechanicstoengageemployees.
ClientreferencesratedCornerstoneOnDemandaleaderinoverallvendorsatisfaction.
Thevendorhasstrongcustomermomentum(addingroughly100newclientsquarterly),with
growingadoptionofitslatestRecruitingCloudofferingandincreasingsuccesssellingitssuite
globally.
CornerstoneOnDemandhasastrongalliancestrategy,includingpartneringagreementswithADP,
Ceridian,WorkdayandTalent2(intheAsia/Pacificregion).
Cautions
Althoughvendorcustomerrelationshipscoresinaggregatescoredsomewhatbetterthanaverage,
handoverfromimplementationtosupport,andtheenhancementrequestprocess,scored
somewhatbelowaverage.
Whilecustomerreferenceswerealsosomewhatmoresatisfiedoverallthanaveragewiththe
product,reportingcapabilitiesscoredslightlybelowaverage.Reportingalsohadthelargestgap
betweenimportanceandsatisfaction.
Cornerstonedoesnotcurrentlyofferworkforceplanningaspartofitstalentmanagementsuite.

HalogenSoftware
Foundedin2001,HalogenSoftwareisbasedinOttawa,Canada,andbecameapubliccompanyinMay
2013.IthasoperationsinNorthAmerica,theU.K.andAustralia,althoughthemajorityofitsrevenue
comesfromNorthAmerica.HalogenTalentSpaceisanativelydevelopedsuiteoftalentmanagement
solutionsthatincludesrecruiting,performance,succession,compensation,learningandjobdescription
management.In2013,thevendoraddedtwoproductsaimedatimprovingmanageremployee
relationshipstheMyersBriggsmodule,whichembedsassessmentcapabilitiesandsurfacesresults
acrossthesuite,and1:1Exchange,anintegratedmeetingmanagementtool.Thevendoroffers
multipledeploymentoptionsforTalentSpace,includingSaaSandsubscriptionlicense/onpremises.
Halogenindicatesthatapproximately85%ofitscustomersarenowdeployedviaSaaSand100%are
onthelatestrelease,regardlessofonpremisesorSaaSdeployment.Thevendorhasapproximately
2,000customersandreported$48millioninrevenuefor2013.Itiswellsuitedformidsize(typically
10,000employeesorfewer),NorthAmericanbasedmultinationalsthatwantverygoodoverall
functionalitythatisrelativelycosteffectiveandeasytoimplement.
Strengths
Halogen'sperformanceappraisalandassessmentcapabilitiesareverystrong,withinnovations
suchasanOutlookpluginthatconvertsperformancerelatedcommentsinemailstoperformance
feedbackjournalentries,andthenewMyersBriggsmoduletosurfacebehavioralassessments
withinthesuite.
Halogenrankedhighestofallparticipatingvendorsinoverallexperiencethroughoutthecustomer
lifecycle,aswellasinoverallproductsatisfaction.
Thevendorhasastrongindustrystrategy,offeringsolutionsforhealthcare,professionalservices,
financialservices,manufacturing,hospitality,educationandthepublicsector.
Thevendor'sfocusoneaseofuseandcustomersuccess,anditspricingstrategy,makeitaleader
inthemidmarket.
Cautions
Successinthemidmarket,whereclientsmayhavechosentorightsizewithHalogen(bybalancing

functionalitywithcost/complexity),maynoteasilytransfertolarge,complexglobalusers.As
Halogencontinuestobroadenitsglobalfootprint,itwillneedtoexpandproductglobalization,
supportandoperationsinordertomaintainitsleadingcustomerexperiencereputation.
Halogen'srecruitingandlearningsolutionshaveprogressed,butstilllagthelargeglobalplayersin
overallfunctionalityanduseradoption.
Thevendor'scustomerbasegenerallylagsinadoptionofsocial/collaborationandmobile,which
maylimitreferencesforGartnerclientslookingtoleveragethosecapabilitieswithinHalogenfor
theirtalentmanagementprocesses.
ThereiscurrentlynoworkforceplanningmodulewithintheTalentSpacesuite.

Haufe
Foundedin2000,HaufeisheadquarteredinSt.Gallen,Switzerland,andhasofficesintheU.S.,
Germany,SwitzerlandandChina.Thevendor'sumantisTalentManagementsuiteoffersrecruiting,
performance,succession,compensation,learning,workforceplanningandcorporatesocialnetworking
onahomogeneous,nativelydevelopedplatform.Thesoftwareisavailablebothonpremisesandasa
SaaSoffering,withapproximately80%ofclientsdeployedviaSaaS.Haufehasover1,000customers
operatinginmorethan180countries,andGartnerestimatesrevenuefromitsTalentManagementsuite
tobebetween$30millionand$50millionannually.Thevendoriswellsuitedformidsizetolarge
Europeanbasedmultinationalorganizations(ithasclientswithupto75,000employees)desiringvery
goodoverallfunctionality,strongconfigurabilityandgoodsupportforlocalrequirements.
Strengths
HaufeisaleaderinGermanspeakingmarkets,especiallywithmidmarketorganizationsofupto
10,000employees,andisgrowingitsglobalcapabilitiesthroughtheadditionofdirectandindirect
salessupportintargetedcountries.
Thevendorhasverystrongrecruiting,andhaskeptpacewithmarketadvancesviabothdirect
andpartnerinvestments(suchastheadditionofvideorecruitingthroughapartnership).
Itisoneofthefewtalentmanagementvendorsendeavoringtosupportandmanageteam
performanceinadditiontoindividualperformance.Thesolutionalsomakesgooduseofnative
socialcapabilities,suchasturningcrowdsourcedideasintogoalcreation,andincorporatingsocial
profileelementsintosuccessionplanningandtalentreviewprocesses.
Cautions
Haufeisnotawellknownvendorglobally.Itwillneedtodevelopastrongerbrandandadditional
multinationalreferencestocompetewithlarger,moreestablishedvendorsinthetalent
managementsuitemarketrecentlyopenedofficesinSanFranciscoandChinaindicatesome
progressinthisarea.
Thevendorscoredbelowaverageforproductsatisfactionasawholecustomerreferencescited
systemperformance,reportingandworkflowasareaswheretheproductmostneeds
improvement.A3Q14platformreleaseandnewhostingcentersareplannedtoaddressknown
systemperformanceissues,partiallydrivenbycustomergrowthandaquadruplingofnetwork
trafficin2013.
Thevendoralsoscoredsomewhatbelowaverageacrossallvendorcustomerrelationship
satisfactioncriteria.Referenceswerelesssatisfiedthanaveragewithhandoverfrom
implementationtosupport,enhancementrequestprocesses,andinitialimplementationand
deployment.Haufebeganaddressingtheseissuesinlate2013,byincreasingsupportteam
capacityandcreatinga"CustomerSuccess"departmenttimewilltelliftheseinitiativeshavethe
desiredeffect.

HRsmart
HRsmart,foundedin1994,isaprivatelyheldvendorbasedinRichardson,Texas.Italsohasofficesin
Canada,SouthAmerica,Europe,theMiddleEast,SouthAfrica,IndiaandtheAsia/Pacificregion.
HRsmartstartedintheerecruitmentmarketandnowoffersanativelybuilt,SaaSonlyunifiedsuite
thatincludesrecruiting,onboarding,performancemanagement,careerdevelopment,succession
planning,compensationmanagement,learningmanagementandonboarding/offboarding.Gartner
estimatesthatthevendorhasover1,400customersandgeneratesbetween$25millionand$50
millioninannualrevenue.HRsmartisbestsuitedforglobalmidsizetolargeenterprisecustomersthat
wantgoodoverallfunctionalitythatiscosteffectiveandeasytoimplement.
Strengths
HRsmartdeliverstalentmanagementfunctionalityonaunifiedplatformwithacommonuser
interface,reportingandsecurity,withglobalcapabilitiessupportedbybothdirectoperationsand
throughpartners.
Forproductsatisfaction,customerreferencesscoredtrainingmadeavailable,integrationwith
otherapplicationsandsystemperformanceaboveaverage,comparedwithallreferences.The
vendorisoftenseenasacosteffectiveproviderthatoffersgoodproductfunctionalitywithglobal
scalability,andglobalcustomerservice.
HRsmarthasasolidandgrowingpartnershipstrategy,includingrelationshipswithMonster,
ProfilesInternational,EmpowerSoftwareSolutionsandExponentHR.
Cautions
Customerreferencesspecificallycitedeaseofuseforemployeesandproductqualityasbelow
average,comparedwithallreferences,althoughoverallproductsatisfactionwassomewhatabove
average.
HRsmartgarneredaveragescoresacrossallvendorcustomerrelationshipcriteriahowever,

referenceswerelesssatisfiedthanaveragewithinitialimplementationanddeployment(this
criterionalsohadthebiggestgapbetweenimportanceandsatisfaction).
HRsmarthasaglobalfootprint,butitisasmallervendor,comparedtosomeoftheothertalent
managementsuitevendorssellingglobally.

IBM(Kenexa)
IBMacquiredKenexa(foundedin1987)inDecember2012asakeycomponentofIBM'sSmarter
Workforceinitiative.TheIBMKenexaTalentSuitehasitsheritageinrecruiting,buttodayincludesthe
fullspanoftalentsolutionsacrossrecruiting,assessments,onboarding,performance,compensation,
learning,successionplanningandanalytics,deliveredasaSaaSoffering.Thevendorhasapproximately
1,000customersutilizingitstalentmanagementsolutionsacrossallsizesoforganizations.Thevendor's
productsarebestsuitedforlarge,globalorganizationsseekingstrongassessmentandrecruitment
capabilitiesthatareintegratedwiththebroadertalentmanagementsuite.IBM'sGlobalBusiness
Servicesdivisionfurtheraugmentsthesuitewithstrategicconsultingandimplementationservices.
Strengths
Thevendor'ssolutionhasbestinclassrecruiting,withaboveaveragefunctionalityacrosstherest
ofthesuite.Itisverystronginlarge,complexorganizationswhererecruitmentiscentraltothe
deal.
Advancesinlearningviainteractivevideo,theincorporationofsocialtaggingandfeedbackin
performance,andadvancedgoalcapabilitiesdemonstrateinvestmentinthesuitebeyondthecore
recruitingcomponent.
Thevendordifferentiatesbydeliveringonitsuniqueapproachtotalentmanagement,including
strongsurvey,assessmentandanalyticsofferings.Itisaleadingproviderofassessment
technologies(withmorethan4,000clients),andoffersarobustjobcompetencylibrary.
IBMhasaugmentedKenexatalentmanagementsolutionswithenterprisesocialcollaboration(IBM
Connections)andimproveddigitalexperience(IBMWebSpherePortaltechnology).Improved
analyticsandbigdatacapabilitieswillbedeliveredviaIBMWatsonFoundationsapplicationsasof
thiswriting,theseareinbetaandnotyetgenerallyavailable.
Cautions
Productwise,referenceswereleastsatisfiedwithtrainingmadeavailable,employee/manager
easeofuse,integrationwithotherapplicationsandworkflow.Sincethe2013talentmanagement
suiteMagicQuadrant,thevendorhasdeliveredanenhanceduserexperience,includingunified
notificationsandimprovedintegrations.However,learningisnotyetfullyintegrated.
Forvendorcustomerrelationshipcriteria,customerswereleastsatisfiedwithexperiencethrough
thesalesprocess,additionaldeploymentsandupgrades,aftersalescare,andhandoverfrom
implementationtosupport.Thismaybeduetotheresidualimpactoftheacquisition,butcould
alsobeatleastpartiallyexplainedbytheaverageemployeesizeofthevendor'sreferences,which
waslargestofallvendors.
ThemajorityofclientsutilizeIBMKenexarecruitingandassessments,withadoptionof
performance,compensationandsuccessionlagging.Advancesacrossthesuiteareplannedto
continue,withaheavyrelianceonadoptionofsocialandanalyticaltoolswithinthebroader
SmarterWorkforceinitiative.

Infor
Inforwasfoundedin2002andisheadquarteredinNewYork.ItisprivatelyheldandownedbyGolden
GateCapitalPartnersandSummitPartners.Inforenteredthetalentmanagementmarketwiththe
acquisitionofLawsonSoftwarein2011,andithascontinuedtoexecuteonitsgrowthbyacquisition
strategybybuyingCertpointSystems(learning),and,mostrecently,PeopleAnswers
(assessment/talentscience).Inforoffersafullsetoftalentmanagementmodules,alongwithitsglobal
coreHRmanagementsystem(HRMS).Since2011,thevendorhasreworkedthearchitectureofthe
productsothatthetalentmanagementapplicationscanbeintegratedtoothercoreHRsystemsaswell
asmultipleInforHCMapplications.InforhasalsointegratedEnwisenintegratedservice
delivery/onboardingandCertpointlearning/contentmanagementtohelpdrivebroadermarket
adoption.MultinationalcustomersthatwanttopurchaseacoreHRMSsolutionwithtalentmanagement
modulesshouldconsiderInfor.
Strengths
ThesolutionisparticularlywellsuitedforNorthAmericanhealthcareorganizations,whereit
deliverstalentmanagementaspartofabroadsuiteofcoreHR,workforcemanagement,financial
andprocurementfunctionalities.
Inforoffersafulltalentmanagementsuitewithrobustcompetencymanagement,industryspecific
content,andcountryconfigurationstoenableglobaltalentmanagementprocesses.
ThevendorhasstrongintegrationbetweencoreHRMSandthetalentcomponents,duetothem
beingnativelydevelopedonthesamecoretechnology(LandmarkJavaframework).
Cautions
Similartolastyear'sreferencefeedback,satisfactionlaggedbehindthatofitscompetitors,
particularlyintheserviceareasofaftersalescareandaccountmanagement.Fromaproduct
perspective,customerswereleastsatisfiedwithsystemperformance,easeofuseandreporting
tools.Thevendor'semergingInfor10xportal(basedonitsIntelligentOpenNetwork[ION]
technology)hasthepotentialtoimproveeaseofuseacrosstheHCMsuite,althoughadoptionby
talentmanagementsuitecustomersislimitedthusfar.
TheInfortalentmanagementapplicationshavehadlimitedadoption,comparedtoothertalent

managementsuitevendors,andthemajorityofdeploymentshavebeenwithcurrentcoreHCM
customers.
WhileInforisalarge,financiallystableorganization,itstalentmanagementsuiterepresentsa
relativelysmallpartofitsbusinessthismayimpacttheallocationofresourcestocontinued
enhancementofthetalentmanagementsuiteovertime.

Lumesse
Lumessewasfoundedin1996andisheadquarteredinLuton,U.K.,withinternationalofficesin17
countries.Thisprivatelyheldvendor(backedbyHgCapital)startedinerecruitmentandhassince
diversified,mostlythroughacquisitions,intothebroadertalentmanagementmarket.ItacquiredMrTed
(rebrandedasTalentLink)asanentreintoSaaSrecruiting,anditacquiredEdvantageGrouptobuild
outitslearningoffering.Thevendorhasapproximately650employeesandover2,300customers,the
majorityofwhichuseerecruitmentoneitherTalentLinkorETWeb(onpremises/hostedsolution)a
numberofETWebcustomersalsoutilizeitsperformanceandsuccessiontools.Gartnerestimatesthe
vendor'sannualrevenuebetween75millionand100million,themajoritycomingfromtheEuropean
region.Lumessereferencesratedoverallproductsatisfactionslightlyabovetheaverageofallvendor
references,whileoverallvendorcustomerrelationshipsatisfactionwasslightlybelowaverageboth
categoriesshowedimprovementoverthe2013talentmanagementsuiteMagicQuadrantreference
survey.Lumesseiswellsuitedformultinationalandmulticulturalorganizationswithcomplex
requirements,becauseitoffersgoodconfigurabilityandglobalcoverage,includingsupportformore
than30languages.
Strengths
Thevendoroffersleadingrecruitmentcapabilities,alongwithstrongperformanceandsuccession
planning.
Thisyear'sreferencesindicatethateaseofuse,productqualityandreportingareaboveaverage,
comparedwithothertalentmanagementsuiteapplications,andtheabilitytocustomizeor
configuretheapplicationhasthesmallestgapbetweenimportanceandsatisfaction,indicatinga
closealignmentwithcustomerexpectations.
ExtensivesupportandsalesacrossEuropegiveLumesseadeepunderstandingofEuropean
complianceandculturalissues,anditsfootprintintheAsia/PacificregionandNorthAmerica
continuestogrow.
Cautions
Workforceplanningremainsagapinanotherwiseendtoendtalentmanagementsuiteoffering.
Fromaproductperspective,thisyear'sreferencecustomerswerelesssatisfiedthanaveragewith
integrationwithotherapplications,documentationofthesolutionandtrainingmadeavailable.
Whenaskedaboutvendorcustomerrelationshipcriteria,referencecustomerswerelesssatisfied
thanaveragewithaccountmanagementandadditionaldeploymentsandupgrades,while
enhancementrequestprocesseshadthelargestgapbetweenimportanceandsatisfaction.

Meta4
Foundedin1991,Meta4isprivatelyheldandheadquarteredinMadrid,withmorethan800employees.
ItisbestknownforitscoreHRMScapabilitiesdeployedbymorethan1,500clients,anditisestimated
thatmorethan600clientsutilizeitstalentmanagementapplications,includingrecruiting,performance
management,successionmanagement,compensationmanagementandlearning.Approximately70%
ofMeta4'stalentmanagementcustomershaveimplementedPeopleNetonpremises,buttheratioof
SaaSdeploymentscontinuestoincrease,andallcustomersareonthecurrentversionofthe
application.MultinationalcustomersinEurope,theU.S.,LatinAmericaandSouthAmericathatdesirea
coreHRMSsolutionwithtalentmanagementmodulesshouldconsiderMeta4.
Strengths
ThevendorhasstrongintegrationbetweencoreHRMSandthetalentcomponents,andavery
consistentdatamodelthatincorporatessupportforcompetenciesacrossalltalentprocesses.
Meta4hasextensiveknowledgeandreachintheLatinAmericanmarketandinWesternEurope.
Productsatisfactionimprovedsubstantiallyfromthe2013MagicQuadrantsurvey,andwasslightly
abovetheaverageofallreferencescustomersweremostsatisfiedwithintegrationwithother
applications,documentation,productqualityandtrainingmadeavailable,whichallscored
significantlyaboveaverage.
Meta4alsoscoredaboveaverageinoverallvendorcustomerrelationshipsatisfaction,with
customersbeingmostsatisfiedwithenhancementrequestprocessesandhandoverfrom
implementationtosupport.
Cautions
Meta4isstillnotwellknownoutsidetheSpanishandLatinAmericanmarkets,whichmayimpact
thenumberandrelevanceofcustomerreferenceshowever,anewmarketinglaunchin4Q13may
helpincreasebrandawarenessandnetnewcustomersforthevendorandPeopleNet.
Feedbackontheproductindicatesthatreferenceswereleastsatisfiedwitheaseofusefor
professionalusers,workflow,andeaseofuseforemployeesandmanagersthesethreecriteria
alsohadthelargestgapsbetweenimportanceandsatisfactionofallproductcriteria.Issueswith
easeofusemaystemfromPeopleNet'suserexperiencenotyetbeinguniformacrossall
applicationmodules.
Thevendordoesn'tcompeteinstandalonetalentmanagementdeals,soitmissesoutonsome
opportunitiesinthebroadermarket.AsothervendorsaretargetingtheLatinAmericanmarket,
Meta4willneedtostrengthenitspositioningandproductdepthtofendoffcompetitorsinitscore

markets.

Oracle
OracleTalentManagementCloudiscomposedofmodulesdevelopedaspartoftheFusionApplication
productline(WorkforceCompensation,PerformanceManagement,GoalManagement,Succession
PlanningandTalentReview)andtheformerTaleoRecruiting,PerformanceManagementandLearning
productsthatwereacquiredinApril2012.Oracleisexecutingonamultiyearplantodeepenthe
integrationbetweenTaleoandFusionHCMmodulesharmonizecurrentlydivergentuserexperiences
anddeploycommonsocial/collaborationandmobileframeworks.Thevendoralsocontinuestosupport
andenhancestandardintegrationsfromOracleTalentManagementCloudtoOraclePeopleSoftand
OracleEBusinessSuiteinsupportofitscoexistencestrategy,whichwillenablecustomerstoleverage
talentmanagementapplicationinnovationsinthecontextoftheircurrentcoreHRMSenvironments.
Productsatisfactioncriteriaimprovedsubstantiallycomparedtothe2013talentmanagementsuite
MagicQuadrant,andisnowscoringslightlyaboveaverage,comparedwithallreferences.Thismay
reflecttheincreasingmaturityofFusionHCMtalentapplications,aswellasthefurthersettlingofthe
Taleocustomerbasesincetheacquisition.Oraclecontinuestoleverageitsglobalsalesandsupport
teamstoincreasesolutionadoptionintheMiddleEast,AfricaandtheAsia/Pacificregion.
Strengths
OracleTalentManagementClouddeliversleadingrecruitingandperformancemanagement,as
wellascompetitivelearningfunctionality,toalarge,diverseglobalcustomerbase.References
ratedenhancementrequestprocesses,additionaldeploymentsandupgrades,andaftersalescare
aboveaverage,comparedwithallvendors.
Thevendorhasenabledsocial,collaborationandmobileasfoundationalservicesofOracleFusion
Middleware,whichmeanstheyareaccessibletoallOracleFusionApplications.Oracleincludes
TaleoinformationinitsOracleMobileHCMfortabletsandsmartphones,andplanstoenable
OracleSocialNetworkforTaleo.
Fromaproductperspective,customersweremoresatisfiedwithworkflow,systemperformance,
andsystemadministrationandconfigurationcomparedtotheaverageacrossallvendors.
Cautions
Fromavendorcustomerrelationshipperspective,customersreportedthegreatestgapbetween
importanceandsatisfactionintheareasofinitialimplementationanddeployment,andhandover
fromimplementationtosupport.
Referencecustomerswereleastsatisfiedwithproducttrainingmadeavailable,comparedwithall
respondents.Althoughreportingscoredjustslightlybelowaverage,ithadthelargestgapbetween
importanceandsatisfactionofallproductcriteria.Thismayindicatehigherthanaverage
expectationsoftheOraclecustomerbaseforpowerful,easytousereportingandanalytics.
OracleTaleoapplicationshavenotyetbeenfullyintegratedintotheOracleFusionHCMstack,
althoughGartnerexpectscontinuedprogressduring2014and2015.Untilintegrationplansare
complete,usersoftheseapplicationsmayencounterdifferentuserexperiences,system
administrationtoolsandintegrationgaps.

PageUpPeople
PageUpPeople,foundedin1997,isprivatelyheldandheadquarteredinMelbourne,Australia.Itwas
oneofthefirstrecruitingplatformssolddirectlywithintheAustralianmarket.Thevendorhasmore
than170customers,mostofwhichareAsia/Pacificbasedmultinationals.PageUpPeopleoffersa
unifiedtalentmanagementsuite,butitsrootsareinerecruitment,whichiswhereitisstrongest,
followedbysuccessionandcareerplanning.Thevendorcontinuestomakeinvestmentstoexpand
globally,withofficesinSydney,theU.K.(London),theU.S.(AtlantaandNewYork),Singapore,and
China(Shanghai).InNovember2012,PageUpPeopleraised$10millionfromAccelKKR.Thevendoris
wellsuitedformultinationalorganizationswithastrongpresenceintheAsia/Pacificregion.Inaddition,
globalorganizationswithafocusonemergingmarketsshouldconsiderPageUpPeople.
Strengths
PageUpPeoplehasarobustserviceoffering,goingbeyondtechnicalimplementationintomore
strategicHRservices,suchasjobdesign,analyticsandchangemanagement.Ithasalsobeen
innovativeinapplyingtheprinciplesoftalentsciencetotheintegratedtalentmanagement
processeswithinitsapplications,includingacomprehensiveapproachtocompetency
management,careerplanning,measurementandanalytics.
Fromaproductperspective,referencecustomerscitedreportingandsolutiondocumentationas
twoareaswheretheirsatisfactionwashigherthantheaverageacrossallreferences.
PageUp'sproduct(particularlyrecruiting)iswellsuitedforemergingmarkets,suchasSoutheast
Asia,GreaterChinaandotherhighgrowthmarkets.
Cautions
MarketawarenessislackingoutsideAustraliaandtheAsia/PacificregionalthoughPageUpPeople
hasbeguntoinvestinbroadersalesandmarketinginitiativesintargetedcountries.Clientsbased
outsideofthesecoremarketsmayhavedifficultyfindingreferencesrelevanttotheirsizeor
industryfocus.
Thevendor'scompensation,learningandperformancemanagementmodulesarestillmaturing
andhavelimitedcustomeradoptiontodate.
Overallvendorcustomerrelationshipsatisfactiondeclinedcomparedtothe2013MagicQuadrant
references.Onthevendorcustomerside,customerswereleastsatisfiedwithaftersalescareand
accountmanagement.

PeopleFluent
PeopleFluentwasfoundedin1997andisheadquarteredinWaltham,Massachusetts.Additionaloffices
arelocatedinCanada,Belgium,Switzerland,Austria,Germany,theU.K.,IndiaandTaiwan.Itis
privatelyheldandownedbytheprivateequityfirmBedfordFunding.Builtandaugmentedviaaseries
ofacquisitions,PeopleFluent'sTalentManagementSoftwareSuiteincludesrecruiting,onboarding,
performancemanagement,compensation,successionplanning,learning,workforceplanningand
analytics,andsocial/collaboration.ThevendoralsohasstrongU.S.compliancecapabilitiesanda
vendormanagementsystem(VMS).PeopleFluenthasrecentlyintegrateditssocialcollaboration
platformwithitstalentmanagementsolution,andhasbegundeliveringpersonadrivenuser
experiencesviaMirrors.Itslatestacquisition,in2013,wasKZOInnovations,anintegratedcollaborative
videocontentmanagementanddeliveryplatform.PeopleFluenthasover5,100totalcustomersmore
than1,000areusingitstalentmanagementsuitemodules,withthegreatestadoptionofworkforce
planning,recruitingandcompensationfunctionality.PeopleFluent'stalentmanagementapplicationsare
wellsuitedformultinationalorganizationsranginginsizefrommidmarkettolargecomplexenterprises.
Strengths
CustomerreferencescitedPeopleFluentamongtheleadersinoverallvendorandproduct
satisfaction.Itsrecruitingandcompensationsolutionsarewellproveninthemarket,andthe
breadthanddepthofthesemodulesaredifferentiators.
ThevendorrecentlyannouncedtheavailabilityofColossus,anintegrationplatformasaservice
(iPaaS)designedtofacilitateintegration,datatransformationandworkflowbetweenits
technologiesandaclient'sexternalsystems.Thiswasanimportantaddition,aspastclient
referenceshadcitedexternalintegrationasneedingimprovement.
Oneoftheleadersinintegratingvideo,socialandmobiletechnologiesintoitsTalentManagement
SoftwareSuite,PeopleFluentisleveragingitsuniqueMirrortechnologytoimprovethesuite's
overalluserexperience.
PeopleFluentisoneofafewtalentmanagementvendorsincorporatingthecontingentworkforce
intoitstalentmanagementprocesses.Forexample,recruitingprocessescanlookacrossinternal,
externalandcontractorpopulations,andsuccessionplanscanincludecontractworkers.
Cautions
Incommonwithmanyvendorsinthismarket,anumberofacquiredfunctionalmodulesand
technologiescomprisePeopleFluent'sTalentManagementSoftwareSuite.Whiletherecent
ColossusiPaaSaidsinintegration,andMirrorenablesaconsistentandimproveduserexperience,
itwilltaketimeforthesetopervadethesuite.
PeopleFluentdeliverstworecruitingapplications,onlyoneofwhichisnativelydevelopedonthe
sametechnologyplatformasitsperformanceandsuccessionproductline.Thevendorwillneedto
makeclearhowtheseproductscoexistinthesuite.
Althoughoverallvendorcustomerrelationshipcriteriascoredsomewhataboveaverage,
referencesreportedthatthelargestgapbetweenimportanceandsatisfactionisinthe
enhancementrequestprocess.Ontheproductside,integrationwithotherapplicationsscoredjust
belowaverage,andhadthegreatestgapbetweenimportanceandsatisfactionofallproduct
criteria.

Saba
Foundedin1997,SabaisapubliccompanyheadquarteredinRedwoodShores,California.Itstartedin
thelearningmarketandhasexpandedintotalentmanagementsuites,nowofferinglearning,
performance,succession,recruiting,workforceplanning,organizationalplanningandsocial
collaboration.SabalauncheditsrecruitingofferinginDecember2013,andGartneranticipatesthatit
willannounceacompensationmodulewithinthenext12months.Saba'stalentmanagementsuite
solutionsareavailableprimarilyascloudofferings(SabaCloud),butcanalsobedeliveredonpremises
(SabaEnterprise).ActivepartnershipagreementswithIBM,KronosandWorkdayprovideadditional
visibilityandexposureinthemarket.Sabahasmorethan2,200customers.Althoughitisstillinthe
midstofarevenuerestatementexerciseanddetailedfinancialshavenotbeenreportedfor2013,
GartnerstillestimatesSaba'sannualrevenueatgreaterthan$130million.Sabaiswellsuitedfor
complexglobalorganizationsthatwantstronglearning,performanceandsuccessionmanagement
solutions.
Strengths
Thevendor'slearningsolutionisbestinclass,anditsperformanceandsuccessionsolutionsare
strong.Inlinewithlastyear'sMagicQuadrant,customerscontinuetocitetheintegrationbetween
learninganddevelopmentfunctionalitiesfordevelopmentplanningasastrength.Inaddition,we
haveseengrowingmarketinterestforSaba'sEngageproductbundle,whichincludeslearning,
performanceandcollaboration.
Sabacontinuestoinnovatearounditscoreproductofferingin2013,itintroducedThe
IntelligentMentor(TIM),whichleveragesmachinelearningtechnologiestoprovideuserswith
morepersonalizedandrelevantinformation,andRockStars,whichusessocialdynamicstohelp
organizationsidentifyhighpotentialemployees.
Sabahasglobalimplementationandsupportservices,enablingittoservelargedistributed
enterprises.
Cautions
ThevendordoesnotcurrentlyoffercompensationfunctionalityaspartofSabaCloud.
Thisyear'sreferencecustomersratedaccountmanagementandaftersalescarebelowaverage,
comparedtoothervendorreferences.

Similartothe2013talentmanagementsuiteMagicQuadrant,thisyear'sreferencescontinuedto
citetheproduct'sworkflowandusabilityasneedingimprovement.However,customersthat
movedfromSabaEnterprisetoSabaClouddidindicateprogressinthesetwoareas.

SAP(SuccessFactors)
SuccessFactors(anSAPcompany)isheadquarteredinSanFrancisco,California.SuccessFactorsbegan
withperformancemanagement,buthasexpandedintosuccessionplanning,compensation,recruitment
andlearning,eitherorganicallyorthroughacquisitions.PriortotheacquisitionbySAP,SuccessFactors
hadacquiredInformBusinessImpact(workforceplanning),CubeTree(social),Jambok(social),Plateau
Systems(learning)andJobs2Web(recruiting).InApril2013,thevendorpurchasedonboarding
specialistKMSSoftware,whichitintegratedwithLearning,andSAPJAM,todeliveracomprehensive
onboardingoffering.GartnerestimatesthatSuccessFactorshasover4,000customersthemajorityuse
performancemanagement,withstrongadoptionofothertalentmanagementcomponents.
SuccessFactorshasofferingstargetedtowardcustomersofallsizes,butitisbestsuitedfor
multinationalorganizationsthatwantbestinclassperformancemanagement,learningandworkforce
planningfunctionality,withgoodsuccession,recruiting,onboardingandcompensationcapabilities.
Strengths
Thevendoroffersmarketleadingperformance,learningandworkforceplanningsolutions,with
functionaldepthandbreadthacrossthefulltalentmanagementsuite.
SuccessFactorshasdominantmindshareinthetalentmanagementsuitemarket.Inaddition,it
hashadgreatersuccesssellingitstalentmanagementsuiteandhasdemonstratedhigheraddon
salesforitscomponentcustomersthananyothervendor.
Thisyear'sreferencefeedbackindicatesthateaseofuse,productqualityandsystemperformance
areaboveaverage,comparedwithothertalentmanagementsuiteapplications.
Cautions
Fromaproductperspective,referencecustomerscitedintegrationwithotherapplications,
documentationofthesolutionandtrainingmadeavailableasareaswheresatisfactionwaslower
thantheaverageofthisreferenceset.
Ongoingcommunicationandcustomersupportfeedbackwasmixed,especiallyatthelowerendof
themarket.
SuccessFactorshasgenerallydoneagoodjobofintegratingitsownvariousacquisitions,andhas
madeadvancementsinintegratingwithSAP'scoresolutions(e.g.,crosssuiteskillsand
competenciesfromSuccessFactorsLearningtoSAPECC6,andonboarding).However,integration
betweenSuccessFactorsandSAP'scoresolutionscontinuestobeaworkinprogress.

SilkRoad
Foundedin2003,SilkRoadisaprivatelyheldvendorheadquarteredinChicago,Illinois,withadditional
officesinCanada,Mexico,WesternEuropeandtheAsia/Pacificregion.SilkRoadbeganasacontent
managementvendorfocusedonthelowermidmarket,andhassinceexpandedintothebroadertalent
managementspaceviaacombinationofmultipleacquisitionsandorganicdevelopment.SilkRoad'sLife
SuiteofferingsincludeHeartBeat(HRMS),OpenHire(recruiting),RedCarpet(onboarding),WingSpan
(performance),GreenLight(learning)andPoint(social).Thevendorhasover500employees,and
approximately2,000customersuseitstalentmanagementsolutions.Gartnerestimatesitsannual
revenueatbetween$25millionand$50million.SilkRoadcontinuestotargetsmalltomidsize
organizations,andnearly85%ofitscustomersareorganizationswithfewerthan10,000employees.
SmalltomidsizeU.S.basedmultinationalorganizationsthatareparticularlyfocusedonimprovingtheir
recruitingandonboardingprocessesshouldconsiderSilkRoad.
Strengths
SilkRoad'sRedCarpetonboardingmoduledeliversbestinclasscapabilitiesandisoftensoldstand
alone.
Customerreferenceshighlightoverallcostandeaseofuseasprimaryreasonsforselection,asthe
vendor'sofferingsaretypicallypricedbelowthoseofitscompetitors.
Inlinewithlastyear'sreferencefeedback,customerscontinuetoindicatethatproducttraining
anddocumentationareaboveaverage,comparedwithothertalentmanagementsuite
applications.
Cautions
Closeto90%ofSilkRoad'scustomersareheadquarteredinNorthAmerica,whichmaylimitaccess
torelevantreferencesforthoseprospectsheadquarteredoutsidethisgeography.
Fromaproductperspective,referencecustomerscitedintegrationandtheabilitytocustomizeand
configuretheapplicationasareasforimprovement.
Althoughthevendorisgrowingrapidlyandiswellfunded,itremainssomewhatspecialized,
mostlytargetingthelowerendofthetalentmanagementsuitemarket.

SumTotal
SumTotalwasfoundedin1985andisheadquarteredinGainesville,Florida.Itisprivatelyheldand
ownedbyVistaEquityPartners.IthasoperationsinNorthAmerica,EuropeandtheAsia/Pacificregion.
Thevendorstartedinthelearningmarketandhasgrownbothorganicallyandthroughanumberof
acquisitionstobecomealargeplayerintalentmanagement.SumTotal'stalentmanagementproducts
includerecruiting,performance,succession,compensation,learning,workforceplanningandanalytics,
alongwithacorporatesocialnetworkingsolution.GartnerestimatesthatSumTotalhasmorethan
3,500customersandgeneratesover$200millioninannualrevenue.Thesolutioniswellsuitedfor

globalorganizationsseekingverystronglearningandperformancemanagementfunctionalities,with
goodcompensationandsuccessionmanagement.
Strengths
SumTotalhasverystronglearningandperformancemanagementsolutions,andstrong
successionmanagementfunctionality.
Thevendorhasacomprehensivevisionforanintegratedtalentmanagementsuite,anditslarge
installedbaseisagoodcrosssellopportunity.
SumTotalcontinuestoinnovateandbringadditionalapproachesandofferingstothemarket.
We'veseengrowingmarketinterestinitselixHRplatform(aswellasevidenceofdeployments)
anditsTalentExpansionmarketingstrategy.
Cautions
Whileoverallcustomersatisfactionhasimprovedinthepastyear,referencecustomerscontinue
tobelesssatisfiedthanaveragewiththeirexperiencethroughthesalesprocess,handoverfrom
implementationtosupportandongoingcommunication.
SumTotalisstillknownprimarilyasalearningvendorandhasn'tkeptpacewiththeleadingtalent
managementsuitevendorsinlandingnetnewtalentmanagementsuitebusiness,whichwilllikely
limitavailabilityofnewreferencesimplementingmultipletalentmanagementsuitemodules.
Fromaproductperspective,referencecustomerscitedeaseofuseandabilitytocustomizeor
configuretheapplicationastwoareaswheretheirsatisfactionwasslightlybelowtheaverage
acrossallreferences.

Talentsoft
TalentsoftisprivatelyheldandheadquarteredinParis.ItalsohasofficesintheU.K.,Germany,
Belgium,Denmark,Netherlands,SwitzerlandandSweden.Itstartedofferingatalentmanagement
solutionin2007,andhasgrownorganicallyandthroughacquisitionsofothervendors,includingRFlex
andPeopleXS.Talentsoftprovidessolutionsforrecruiting,performance,succession,compensationand
workforceplanning,andofferslearningcapabilitythroughapartnershipwithCrossKnowledge.In2013,
thevendorreceived15millioninventurefunding,andnowhasover250employeesand
approximately600customersthatuseitstalentmanagementsolutions.Gartnerestimatesitsannual
revenueat25millionto50million.ThesolutionisdeliveredthroughMicrosoft'sAzureplatformasa
serviceoffering.TalentsoftisbestsuitedtoEuropeanmultinationalslookingforanintegratedtalent
managementsuitethathasstrongsupportforEUsocialregulations.
Strengths
Similartolastyear'sreferences,thevendorhadverypositivecustomerfeedback,ascustomers
citedeaseofuse,configurationandtrainingasproductstrengths.
TalentsofthasstrongmarketawarenessandcustomersuccessinFrance.IthasstrongEuropean
functionality,includingsupportforEuropeancompliantcompetencyandcareermanagement.
Customerreferencesalsocitedhandoverfromimplementationtosupport,aftersalescareand
accountmanagementasstrengths.
Cautions
TalentsofthasaleadingpositioninEurope,butisstillnotwellknownbeyondEurope.Itneedsto
continuetoincreaseitsawarenessinothergeographiestoexpanditsreferencebaseand
experiencelevelinsupportingtalentprocessrequirementsoforganizationsbasedoutsideofthe
EU.
Althoughthevendorisgrowingveryrapidlyandhasreceivedadditionalfunding,itisstillrelatively
small,comparedwiththemarketleadingtalentmanagementsuiteproviders.
Themajorityofitsinstalledbaseisusingrecruitingandperformancemanagement,whileits
learningmanagementandcompensationsolutionshavegrowing,butstilllimited,customer
adoption.

Technomedia
TechnomediaisaprivatecompanyheadquarteredinMontreal,Canada,withofficesintheU.S.,
Germany,Nordics,FranceandHongKong.Itsnativelyunifiedtalentmanagementofferingincludes
recruiting,performance,succession,compensation,learningandworkforceplanning.Almostallofits
customers(approximately95%)aredeployedviaSaaS.GartnerestimatesthatTechnomediahas
approximately200employeesandover500customers,andgeneratesapproximately$25millionto
$50millioninannualrevenue.ThevendorincreaseditsfootprintintheU.S.withtheacquisitionof
HodesiQin2011.Technomediaiswellsuitedforglobalmidsizeandlargecomplexenterprise
customersthatwantstrongrecruitingandperformancemanagementcapabilities.
Strengths
Technomedia'sstrengthisinrecruiting,asthesolutionhasexcellentjobboardpostingcapabilities
andgoodsocialintegration.
Thevendorhasalongtrackrecordofworkingwithlarge,complexorganizationswithover50,000
employees.
TheTechnomediaanalyticsofferingleveragesMicrosoft'scloudbasedbusinessintelligence
solutionsastheunderlyingtechnology,andthevendorhasintegratedwithSharePointtoprovide
anoptionforcustomersdesiringenhancedenterpriseportalinteroperability.
Cautions

Fromaproductperspective,referencecustomerscitedproductqualityandreportingcapabilities
astwoareaswheretheirsatisfactionwasbelowtheaverageacrossallreferences.
Customersalsoindicatedthatexperiencethroughthesalesprocess,handoverfrom
implementationtosupport,andadditionaldeploymentsandupgradesareareasforimprovement
ontherelationshipside.
Technomedianeedstoimproveitsbrandawarenessinthetalentmanagementsuitemarketto
drivemorenetnewsalesopportunities,implementationsandcustomerreferences.

TowersWatson
Foundedin1865,TowersWatsonisalargepubliclytradedglobalprofessionalservicescompanythatis
headquarteredinNewYork.ThevendoroffersatalentmanagementsuitethroughitsHR&Talent
ManagementTechnology(HRT)lineofbusinessthatincludesperformance,succession,career,
compensationandlearningmodules.TowersWatsonhasapproximately400employeeswithinitsHR
Technologyunitdedicatedtodevelopingitstalentmanagementsolution,whichhascloseto500
customers.TowersWatsoniswellsuitedforglobalmidsizetolargecomplexenterprisecustomersthat
wantstrongcompensationandperformancemanagement.
Strengths
TowersWatsonhasstrongcompensationandperformancemanagementcapabilities.Thesolution
isparticularlywellsuitedforNorthAmericanorganizationsthathavepayforperformanceneeds.
Thevendorhasarobustserviceoffering,goingbeyondtechnicalimplementationintomore
strategicHRservices,suchasprocessdesign,analyticsandchangemanagement.
ThevendorhasstrongintegrationbetweenitsHRportalanditstalentmanagementmodules.This
allowscustomerstoleveragewidgetsandsurfacecontentfromitstalentofferingswithintheHR
portal.
Cautions
Vendorcustomerrelationshipsatisfactionsignificantlylaggedsurveyaveragesandthemajorityof
itscompetitors,particularlyintheareasofinitialimplementationandadditionaldeploymentsand
upgrades.Thelargestgapbetweencustomerimportanceandsatisfactionwasreportedfor
enhancementrequestprocesses.
Productsatisfactionalsosignificantlylaggedsurveyaveragescustomerswereleastsatisfiedwith
productquality,easeofuseandreportingtools.Thelargestgapbetweensatisfactionand
implementationwasinproductqualityandreportingtools.
TowersWatson'stalentmanagementsuitehaslimitedmarketadoption,withthemajorityofits
deploymentsfocusedstrictlyoncompensation.

VendorsAddedandDropped
WereviewandadjustourinclusioncriteriaforMagicQuadrantsandMarketScopesasmarketschange.
Asaresultoftheseadjustments,themixofvendorsinanyMagicQuadrantorMarketScopemay
changeovertime.Avendor'sappearanceinaMagicQuadrantorMarketScopeoneyearandnotthe
nextdoesnotnecessarilyindicatethatwehavechangedouropinionofthatvendor.Itmaybea
reflectionofachangeinthemarketand,therefore,changedevaluationcriteria,orofachangeoffocus
bythatvendor.

Added
TechnomediaandTowersWatsonwerebothmentionedinthe2013versionofthisMagicQuadrantas
vendorsthatdidn'tmeettheinclusioncriteriaforformalrating,butwerenonethelessparticipantsinthe
talentmanagementsuitemarket.Bothhavemettheinclusioncriteriaforthisupdate.

Dropped
Whilenovendorshavebeendropped,SAPERP,OracleEBusinessSuiteandOraclePeopleSofthave
beenremovedfromthisupdatedMagicQuadrant.Whilethesesolutionshavelargeinstalledcustomer
basesandcontinuetobemaintainedandenhanced,theydonotrepresentthefocusofproduct
innovationandsalesandmarketingstrategyfortheirrespectivefirms.

InclusionandExclusionCriteria
TobeincludedinthetalentmanagementsuiteMagicQuadrant,avendor'ssolutionmust:
Betheprimarydeveloperofatalentmanagementofferingthatincludesatleastfourofsixmajor
componentsoftalentmanagement:workforceplanning,talentacquisition(recruiting),
performancemanagement,compensationmanagement,successionmanagementandlearning.
Sell,deliverandsupportthetalentmanagementoffering,andprovideprofessionalservicesand
othermaintenanceservices.Also,thevendormusthaveatleast150customerswithmorethan
1,000employeesusingatleastthreeofthetalentmanagementcomponents,ormorethan$35
millioninrevenuefromtalentmanagementapplications.
Havegainedatleast75netnewcustomersthatpurchasedatleastthreetalentmanagement
componentsduringeithertheperiodfrom1October2012to30September2013orthevendor's
lastfourfiscalquarters.
ProvideGartnerwithatleast10customerreferencesinproductionutilizingatleastthreeofthe
sixmajorcomponentsoftalentmanagement.
Havealocalpresenceinatleasttwoofthefollowinggeographicregions,or(attheveryleast)
multiplecountrieswithinaregion:NorthAmerica,EMEA,Latin/SouthAmerica,Indiaorthe
Asia/Pacificregion.

BeregularlyidentifiedbyGartnerclientsandprospectsasanotablevendorinthetalent
managementmarket.
Thisisavibrantandevolvingmarket,andtherearemanyvendorsofferingsolutionsthatdon'tmeetall
oftheinclusioncriteria,butthatnonethelessmaybeverysuitableforyourenterprise,including:
ADP:ADPhasinvestedsignificantlyindevelopingVantageHCM,aproductthatunifiescoreHR,
payroll,benefitsadministrationandtalentmanagementfunctionalityunderacommonuser
experience,includingcapabilitiesdeliveredbyitsWorkscapeandVirtualEdgeacquisitions.
AragoneRH:ThisvendoroffersaFrenchbasedtalentmanagementandlightweightcoreHRMS
offeringthatisgettingtractioninsubsidiariesoflargemultinationals.
Ceridian:InadditiontocoreHR,payrollandbenefitsoutsourcing,Ceridianalsosellsrecruitingas
partofitsDayforceoffering,andplanstodeliveradditionaltalentmanagementmodulesaspartof
itsproductroadmap.
Fairsail:FairsailoffersalightweightcoreHRMSandtalentmanagementsolutionbuilton
Force.comthatiswellsuitedtosmallormidsizeorganizationswithanexpandingglobalfootprint.
HealthcareSource:Thisvendorhasdevelopedastrongtalentmanagementofferingfocusedon
theU.S.healthcaresector.
HRAccess:HRAccessisasuccessfulcoreHRMSvendorinWesternEurope,withimproving
talentmanagementcapabilities.
HRsoft(formerlyWorkstream):Thisvendor'straditionalstrengthhasbeenwithin
compensationplanning,andsupportingitwithitscompensationcommunicationsandperformance
managementcapabilities.
Mercer:BasedonarelationshipwithPeopleFluent,Mercercombinestechnologyprovidedby
PeopleFluentanditsownintellectualpropertyandservices.Itisbestsuitedforglobal
organizationsthatwantonestopshoppingfortheirtalentmanagementsoftware,contentand
services.
MidlandHR:ThisvendorisastrongchoiceforU.K.basedorganizationslookingforanintegrated
coreHRMSandtalentmanagementsolution.
Neogov:NeogovhasbuiltaleadingpositioninpublicsectorrecruitmentintheU.S.,andhas
expandedintootherareasoftalentmanagement.
NetDimensions:AHongKongbasedlearningvendorthathasbuiltoutabroadertalent
developmentoffering,especiallysuitableforhighlyregulatedindustries.
NGA.Net:AleaderinAustralianpublicsectorrecruiting,NGA.Netiscurrentlyimplementingits
eRecruitsolutionforthe29agenciesoftheU.S.DepartmentofAgriculture,anddeliversposthire
talentmanagementviathe2010acquisitionofePerform,whichithastransitionedontoitscore
platform.
NuViewSystems:ThisvendorofferscoreHRMSsolutionswithintegratedtalentmanagement
modules.MidsizeU.S.basedorganizationsthatwantanintegratedHCMsolutionthatincludes
coreHRMSandatalentmanagementsuiteshouldconsiderNuViewSystems.
PeopleAdmin:Thisvendorhasfocusedtalentmanagementsolutionsforhighereducationand
governmentintheU.S.Forexample,ithasspecificindustryfunctionalityforfacultysearch,
positionmanagementandcompliance.Itisparticularlystronginhighereducationrecruitment.
PeopleStreme:PeopleStremehasdevelopedastrongmarketpositionintalentmanagementin
Australia.ThevendorhasexpandedintotheAsia/PacificregionandtheU.S.,andhasrecently
updateditslearningmanagementcapabilities.
TalentiaSoftware:Thispayroll/financevendorrecentlyacquiredCezanneSoftwareHoldingLtd.
tobuildoutitsfootprintincoreHRandtalentmanagementitisparticularlystronginthe
SouthernEuropeanmarketandalsohasanumberofU.K.customers.
UltimateSoftware:ThisvendorisastrongoptionforNorthAmericanbasedorganizations
seekingintegratedHRMSandtalentmanagement,andiscurrentlyexpandingcountryspecific
localizationsupportinEMEAandtheAsia/Pacificregion,whileenhancingitstalentmanagement
modulestomeettheneedsoflargerenterprises.
Workday:Workdayhasdevelopedstrongperformance,successionandcompensationcapabilities
togowithitsleadingglobalHRMS.ThevendordelivereditsownrecruitmentmoduleinMay2014.

EvaluationCriteria
AbilitytoExecute
Product/Service:Thisincludesthevendor'scapabilitiesinthesixcomponentsoftalentmanagement.
Workforceplanning,recruitment,performancemanagement,career/successionplanning,compensation
andlearningmanagementwereassessedforfunctionalcompletenessandeaseofuse.Inadditionto
functionaldepthinthosecomponents,howwellthevendorshaveintegratedthecomponentswasan
importantfactor.Analyticsreceivedconsiderableattention,asithasbeenamajorcustomerconcern.
Thearchitecture,deliverymodels,anduseofmobileandsocialcapabilitieswererated.Thefocuswas
onthevendors'currentfunctionality,althoughenhancementsand/ornewmodulesonthevergeof
generalavailabilitywerealsoevaluated.
OverallViability:Keyaspectsofthiscriterionarethevendor'sabilitytoensurethecontinuedvitality
ofaproduct,includingsupportofcurrentandfuturereleases,andaclearroadmapforthenextthree
years.Thevendormusthavethecashonhandandconsistentrevenuegrowthduringfourquartersto
fundcurrentandfutureemployeeburnrates,andtogenerateprofits.Thevendorisalsoratedonits
commitmentandabilitytogeneraterevenueandprofits,specificallyinthetalentmanagementsuite
market.

SalesExecution/Pricing:Thevendormustprovideglobalsalesanddistributioncoveragethataligns
withitsmarketingmessages.Itmusthavespecificexperienceandsuccesssellingtalentmanagement
suiteapplicationstoHCMbuyingcenters.Thisincludesdealmanagement,partnering,pricingand
negotiations,presalessupport,andtheoveralleffectivenessofthesaleschannels.
MarketResponsivenessandTrackRecord:Thisreferstothevendor'sabilitytorespond,change
direction,buildalliances,beflexibleandachievecompetitivesuccessasopportunitiesdevelop,
competitorsact,customerneedsevolveandmarketdynamicschange.Thiscriterionalsoconsidersthe
vendor'shistoryofresponsiveness.
MarketingExecution:Thiscriterionassessestheclarity,quality,creativityandefficacyofprograms
designedtodeliverthevendor'smessagetoinfluencethemarket,promoteitsbrandandbusiness,
increaseawarenessofitsproducts,andestablishapositiveidentificationwiththeproduct,brandor
vendorwithbuyers.Thismindsharecanbedrivenbyacombinationofpublicity,promotions,thought
leadership,wordofmouthandsalesactivities.
CustomerExperience:Feedbackfromactivecustomersongenerallyavailablereleasesduringthe
past12to18monthsisanimportantconsideration.Sourcesoffeedbackincludevendorsupplied
references,Gartnerinquiriesandothercustomerfacinginteractions,suchasGartnerandindustry
conferences.Customers'experiencesareratedbasedonthevendor'sabilitytohelpcustomersachieve
positivebusinessvalue,aswellassustaineduseradoption,qualityimplementationandongoing
support.
Operations:Thiscriterionassessestheabilityofthevendortomeetitsgoalsandcommitments.
Factorsincludethequalityoftheorganizationalstructuretheskills,experiences,programs,systems
andothervehiclesthatenabletheorganizationtooperateeffectivelyandefficientlyonanongoing
basis.

Table1.AbilitytoExecuteEvaluationCriteria
EvaluationCriteria

Weighting

Product/Service

High

OverallViability

Medium

SalesExecution/Pricing

High

MarketResponsivenessandTrackRecord

Low

MarketingExecution

High

CustomerExperience

High

Operations

Medium

Source:Gartner(June2014)

CompletenessofVision
MarketUnderstanding:Thisreferstothevendor'sabilitytounderstandbuyers'needsandto
translatethoseneedsintoproductsandservices.Vendorsthatshowthehighestdegreeofvisionlisten
andunderstandbuyers'wantsandneeds,andcanshapeorenhancethemwiththeiraddedvision.We
specificallylookedforhowvendorsdescribedtheintegratedtalentmanagementmarketand
opportunity,notmerelythatofthecomponentproducts.
MarketingStrategy:Thiscriterionassesseswhetherthevendorhasaclear,differentiatedmarketing
strategywithasetofmessagesthatappealstoHRorganizationsandleaders,andthatisconsistently
communicatedthroughouttheorganizationandexternalizedthroughthevendor'swebsite,customer
programsandpositioningstatements.
SalesStrategy:Thevendorshouldhaveastrategyforsellingtalentmanagementsuitesoftwarethat
usestheappropriatenetworkofdirectandindirectsales,marketing,service,andcommunications
affiliatesthatextendsthescopeanddepthofmarketreach,skills,expertise,technologies,servicesand
thecustomerbase.Keyelementsofthestrategyincludeasalesanddistributionplan,internal
investmentprioritizationandtiming,andpartneralliances.
Offering(Product)Strategy:Thevendorshoulddemonstrateavisionforapplicationfunctionality
acrossthebreadthanddepthofthetalentmanagementsuite.Wefocusedbeyondthefunctionalscope
listedintheAbilitytoExecutesection,andplacedadditionalattentiononthevendor'svisionfortheuse
ofmobiletechnologies,advancedanalytics,relevantsocialusecases,integrationandeaseofuse.The
productstrategycanbeacombinationoforganicdevelopment,acquisitionand/orecosystems.For
ecosystems,closeattentionispaidtothequalityandsupportofthirdpartypartners.Foracquisitions,
weplaycloseattentiontointegration.
BusinessModel:Vendorsneedtohaveclearbusinessplansforhowtheywillbesuccessfulinthe
talentmanagementsuitemarket.Thesebusinessplansshouldincludeappropriatelevelsofinvestment
toachievehealthygrowthduringathreetofiveyearperiod.
Vertical/IndustryStrategy:Thevendorshouldhaveastrategytodirectresources,skillsand
offeringstomeetthespecificneedsofindividualmarketsegments,includingverticals.
Innovation:Vendorsmustshowamarshalingofresources,expertiseand/orcapitalforcompetitive

advantageorinvestmentsinnewareas(suchasadvancedanalytics)ornewaccessmethods(suchas
tablets).
GeographicStrategy:Weexaminethevendor'sstrategytodirectresources,skillsandofferingsto
meetthespecificneedsofregionsoutsidethelocationofthecorporateheadquarters,directlyor
throughpartners,channelsandsubsidiaries,asappropriateforthatgeographyandmarket.

Table2.CompletenessofVision
EvaluationCriteria
EvaluationCriteria

Weighting

MarketUnderstanding

Medium

MarketingStrategy

High

SalesStrategy

Low

Offering(Product)Strategy

High

BusinessModel

Low

Vertical/IndustryStrategy

Low

Innovation

Medium

GeographicStrategy

High

Source:Gartner(June2014)

QuadrantDescriptions
Leaders
LeadersdemonstrateamarketdefiningvisionofhowtalentmanagementtechnologycanhelpHR
leadersachievebusinessobjectives.Leadershavetheabilitytoexecuteagainstthatvisionthrough
products,services,anddemonstrated,solidbusinessresultsintheformofrevenueandearnings.In
talentmanagementsuites,Leadersshowaconsistentabilitytowinbroadsuitedeals.Theyhave
significantsuccessfulcustomerdeploymentsinNorthAmerica,EMEAandtheAsia/Pacificregionina
widevarietyofverticalindustries,withmultipleproofpoints.Leadersareoftenwhatotherprovidersin
themarketmeasurethemselvesagainst.

Challengers
ThevendorsintheChallengersquadrantareoftenlargerthanmost(butnotall)vendorsintheNiche
Playersquadrant.Thesevendorshavethesizetocompeteworldwide,but,insomecases,theymaynot
beabletoexecuteequallywellinallgeographies.TheyunderstandtheevolvingneedsofanHR
organization,yetmaynotleadcustomersintonewfunctionalareaswithastrongfunctionalvision.
ChallengerstendtohaveagoodtechnologyvisionforarchitectureandotherITorganizational
considerations,butmaynothavewontheheartsandmindsofHRandITexecutives.Asinthefirst
iteration,thisversionoftheMagicQuadranthasnoChallengersitseemscustomerscontinuetovalue
innovationoverexecution,andthisisreflectedinvendorofferings.

Visionaries
Visionariesareaheadofmostpotentialcompetitorsindeliveringinnovativeproductsand/ordelivery
models.Theyanticipateemerging/changingmarketneeds,andmovethemarketaheadintoareas
whereithasn'tyetbeen.Visionarieshaveastrongpotentialtoinfluencethedirectionofthetalent
managementsuitemarket,butarelimitedinexecutionand/ordemonstratedtrackrecord.

NichePlayers
NichePlayersofferproductsfortalentmanagementfunctionality,butmaylacksomefunctional
components,maynotshowtheabilitytoconsistentlyhandledeploymentsacrossmultiplegeographies
ormaylackstrongbusinessexecutioninthemarket.NichePlayersmayoffercompleteportfoliosfora
specificvertical,butareunabletofullysupportcrossindustryrequirementsforseveraltalent
managementfunctions,suchasworkforceplanningorerecruitment.Theymayhaveaninconsistent
implementationtrackrecord,ormaylacktheabilitytosupportlargeenterpriserequirements.Despite
theissuesdescribed,inmanycases,NichePlayerscanofferthebestsolutionstomeettheneedsof
particularHRorganizations,consideringtheprice/valueratioforthesolution.Thesevendorstendtowin
componentdeals,butarenotconsistentlywinningthewholesuite.

Context
AllvendorsincludedintheMagicQuadrantforTalentManagementSuiteshavecustomersthatare
successfullyusingtheirproductsandserviceshowever,thisisnotanexhaustivelist.Otherregional
and/orverticalindustryspecialistsdidnotmeetourinclusioncriteria.ThisMagicQuadrant
encompassesawidecrosssectionofvendors,includingthosethatofferdifferentdeliverymodels(such
asonpremises,hostedandSaaS),anddifferinglevelsoffunctionalbreadthandsophistication.
Regardlessoftheprovideryou'reconsidering,askyourself,"Willthisvendorhelpmyorganization
managemytalentmoreeffectively?"Inmanycases,anHRorganizationmustevaluatenotjusta
vendor'ssuiteofproductofferings,butalsotheecosystemofprovidersthatcanfillinwhatever
functionalgapsthattheconsideredvendorontheMagicQuadrantmaynotoffer.
UsethisMagicQuadrantasareferenceforevaluations,butexplorethemarketfurthertoqualifythe
capacityofeachvendortoaddressyouruniquebusinessproblemsandtechnicalconcerns.Depending

onthecomplexityandscaleofyourrequirements,yourshortlistwillbeunique.TheMagicQuadrantis
notdesignedtobethesoletoolforcreatingavendorshortlist.Useitaspartofyourduediligence,and
inconjunctionwithdiscussionswithGartneranalysts.

MarketOverview
Historically,HRleadershadtopurchaseseparatefunctionalcomponentsiftheywantedbestofbreed
softwaretosupportaparticulartalentmanagementprocess,suchastalentacquisitionor
compensation.However,offeringsfromthevendorcommunityhavecontinuedtoexpandbeyondtheir
capabilitiesoforigintocovermoretalentrelatedfunctionsconcurrently,ITanduserfrustrationwith
thecostandeffortofintegratingmultiplenichesolutionshasgrown.Asaresult,thetalent
managementsuitehasbecomeaviableoption,andmultiplevendorshavecredibleofferings.The
marketfortalentmanagementsuiteshasbecomefirmlyestablishedasamajoroptionforenterprises
lookingtoimprovetheefficiencyandeffectivenessoftheirtalentprocesses.Asorganizationsmake
decisionsregardingtheirHCMapplicationstrategies,HRandITleadersneedtounderstandthe
dynamicsaffectingthetalentmanagementsuiteandHCMmarkethence,weofferthisMagicQuadrant.
Theintegratedsuitestartedtobeadoptedbycustomersseveralyearsago,andthebroaderuseof
talentmanagementapplicationsbycustomershascontinuedduringthepastthreeyears(see"The
TalentManagementSuiteMarketEmerges"[Note:Someofthedocumentsreferencedinthisresearch
havebeenarchivedsomeoftheircontentmaynotreflectcurrentconditions.]).Customershavebeen
successfulinautomatingbasictalentmanagementprocesses,butthesehavenotnecessarilyhadallthe
strategicimpactthattheyhadhopedfor.Themarketconsolidatedatarapidclipduring2011and2012,
andmanyproviderssuchasKenexa,Lumesse,PeopleFluent,SumTotal,SuccessFactorsandTaleo
haveturnedtoacquisitionstoaddfunctionalityandcustomers.Inaddition,largervendors,suchas
IBM,OracleandSAP,acquiredthelargertalentmanagementsuiteplayers(Kenexa,Taleoand
SuccessFactors,respectivelysee"SAPtoBuyIntoSoftwareasaServiceWithSuccessFactorsDeal"
and"TheImpactoftheTaleoAcquisitiononOracle'sHCMStrategy").Basically,thoseinitiallydoingthe
acquiringhave,inturn,beenacquired.Afteraperiodofrelativequietduringmostof2013,ERPvendor
Inforandothertalentmanagementsuitevendorshavecompletedanumberoftuckinacquisitionsto
roundouttheirtalentmanagementsuiteportfolios.MostERPvendorscannownotonlypositionan
integratedtalentmanagementsuiteaspartofabroaderHCMoffering,butcanalsoofferatalent
managementsuiteaddonforcustomersthatdon'twanttoreplacetheircoreHRMScapabilities.

TheMarketIsNotJustAboutTalentManagementSuites
Althoughtalentmanagementsuiteadoptioncontinuestoincrease,themarketforspecializedtalent
managementpointsolutionswillnotdisappearfortheforeseeablefuture.Recruitmentmarketingis
likelytobedominatedbypointsolutionvendorsforsometime(see"Predicts2013:NexusofForces
AltersAdministrativeERPOutlooks").Talentmanagementsuitevendorshavenotyetdrivenfull
adoptionoftheircompensationsolutions,andmanypointsolutionproviderswinthatpartofthedealif
theorganizationdoesnotendupstayingwiththeircurrentsolution(usuallycomplexhomebuilt
spreadsheets).Organizationsseekinglearningsolutionsforcustomersorpartnerswilllikelycontinueto
investinspecialtyvendors.Continuinginnovationinrewardsandrecognitionprogramsmeansthatnot
allperformancemanagementhappensinthesuite.Manyorganizationswilldeploysuitesformostofthe
processes,butwillalsokeeptheseparatecomponentsthatareworkingtodayatleastuntilthe
contractisupforrenewal,atwhichtimetheywilloftenreviewtheirtalentmanagementsuitevendor's
progresstodetermineifitistimetoaddthatcapabilitytotheintegratedsuite(see"ApplyingGartner's
PaceLayeredApplicationStrategytoHumanCapitalManagement").
SomeclientswanttoreplaceorupdatetheircoreHRMSsolutionsandconsidertalentmanagement
capabilitiestobepartofthosereplacements,astheybelievethathavingcoreHRprocessesandtalent
processesusingthesameintegrateduserexperiencetobemoreimportantthanthetraditionalcoupling
ofcoreHRandfinance.Alreadystronginthemidmarket,thistrendisstartingtomanifestinlarge
complexglobalenterprises(see"Predicts2014:NexusForcesRedefineHumanCapitalManagement").
Ofthe191talentmanagementsuitecustomerswhorespondedtotheMagicQuadrantreference
survey,40%wereusingthetalentmanagementsuitemodulesfromtheircoreHRMSvendor,while
60%wereusingadifferentvendorsolution.Whilethisdistributionwasapproximatelythesameaswhat
referencesreportedinthefirstiterationofthisMagicQuadrant,weexpectincreasedusageofcore
HRMStalentmanagementsuitemodulestodriveashiftinthebattlegroundfromtalentmanagement
suitestobroaderHCMsuitesforsomeclientsduringthenextthreetofiveyears.
Atthesametime,customersandvendorsalikecontinuetograpplewiththeimpactandimplicationsof
theNexusofForces(social,mobile,cloudandinformation)ontalentmanagement.Asaresult,
customersmayconsiderpointsolutionsinareassuchasrecruitingandlearning(see"LooktoVideo
RecruitingtoImproveQualityandReduceCosts"),alongwithbroadertalentmanagementsuite
solutionsfromvendorsshowingsufficientinnovationinsocial,mobile,cloudandinformation.Vendors
offeringsolutionsthatmerelyautomatetalentmanagementprocesseswillnotfareaswellasthosethat
combineefficiency,talentprogrameffectivenessanddemonstrablebusinessimpact.Ononehand,
aspectsweassociatewithtraditionaltalentmanagementsuiteswillincreasinglybeincorporatedinto
broaderHCMsuites.Ontheotherhand,anewgenerationoftalentmanagementsolutionswillemerge
thatwillreimaginetraditionaltalentmanagementprocessesandapproachesusingsocial/collaboration,
mobile,cloudandinformation(see"SocialEmployeeRecognitionSystemsRewardTheBusinessWith
Results").

NotAllComponentsAreCreatedEqual
Noonevendordominatesallcomponentsofthesuite.Mostvendorsarestrongestinoneortwo
components,andhavevaryingcapabilitiesinothers.Afewvendorsarestronginthreeorfour
components.Inmostcases,buyerswillneedtomakesomecompromisesoncomponentfunctionalityin
ordertocommittoasuite,oftenbyfocusingonthefunctionalitytheyneedtoreplacefirst,andbetting
thatthevendorwillcontinuetoenhancethecapabilitiesoftheothermodulestoapointthattheycan

beimplementedinasubsequentphase.Mostvendorshavenotyetbuiltoutcompellingworkforce
planningcomponents,andcompensationadoptionisgenerallylesspervasivethanothercomponent
adoption.Thisispartlybecausemanyorganizationshavecomplexcompensationprocesses,andpartly
becausemostvendorshaven'treallydevelopedsufficientflexibilityandrobustnessintheirofferingsto
handlethatcomplexity.Thereisalsoreluctanceinsomeorganizationstodeploycompensationina
SaaSmode.Weexpecttheleadingvendorstodifferentiateovertimebydeliveringconsistent
capabilitiesacrossthebreadthofthesuite.

CloudDeploymentsPredominate
TalentmanagementfunctionshaveledthewayincloudandSaaSsincethefirstrecruitingsolutions
emergedoveradecadeago.Inthebroadglobalmarket,recruitingisstillthemostcommonlydeployed
SaaStalentapplication,followedbyperformancemanagement,thenlearning.Manyvendorsoffer
applicationsthatcanonlybedeliveredviaSaaS,whichmaylimitadoptionincertainindustriesand
geographiesthathavenotyetfullyembracedtheideaofsensitiveandconfidentialtalentdatainthe
cloud.Othervendorsprovideonpremises,thirdpartyhostedorvendorhostedoptions,whichgives
prospectsinthosemoreconservativemarketsachoice.Whilethemajorityofdeploymentswillbe
variousformsofcloudandSaaS,onpremises(akaprivatecloud)willcontinuetobeusedbyacertain
segmentoftheglobalmarketduringthenextfiveyears.Gartnerestimates,andourlatestsurvey
results,reflectthatover80%ofalltalentmanagementsuitedeploymentsarehappeninginthecloud,
whileonly15%weredeployedonpremises.

PerformanceManagementIstheMostCommonStartingPoint
Intermsofdeploymentpreference,performancemanagementappearstobetheareainwhichmost
organizationsstart.Ourreferencesurvey(191responses)showsthat44%oforganizationsstartedwith
performance(downfrom51%ofthoserespondinginthefirsttalentmanagementsuiteMagicQuadrant
survey),while26%startedwithrecruitingand19%startedwithlearning.

ReportingContinuestoBeanIssue
CustomerreferencesforthefirsttalentmanagementsuiteMagicQuadrantsurveyratedreporting
capabilitiesthelowestamong11productsatisfactioncriteria(4.63averageonascaleof1to7,with
lessthan35%ofrespondentsindicatinga6or7).Thistrendhascontinuedwiththemostrecent
surveyalthoughtheresponsesareslightlymorepositive(4.78average,with40%indicatinga6or7),
reportingwasstillthelowestratedcriteria.Referencesalsoratedtheimportanceofreportingat6.50
onthesame1to7scale,resultinginthelargestgapbetweenimportanceandsatisfactionofallproduct
satisfactioncriteria(1.72).Theseresultsshowthatmorethanincrementalimprovementsinreporting
capabilitiesareneededforvendorstotrulymakeprogresstowardmeetingcustomerexpectations.

EaseofUseTrumpsAll
Talentmanagementsuitecustomerreferencesratedeaseofuseforemployeesandmanagersasthe
mostimportantproductcriteria(6.84),narrowlybeatingoutproductquality(6.77).Actualcustomer
satisfactioncameinat5.54,resultingina1.29gapbetweenimportanceandsatisfaction,thethird
largestofallproductcriterion.Incontrast,easeofuseforprofessionaluserswasratedfifthmost
important(6.48),anditshigheraverageratingof5.67resultedinagapofonly0.81.Theseresultsare
inlinewithGartnerclientinquiriesthatindicateboththeincreasingimportanceoftheemployeeand
manageruserexperienceandtheneedforvendorsolutionstocontinuouslyimproveinthisarea.

IntegrationGrowsinImportance
Agrowingnumberofsurveyrespondentscommentedthattheyeitherusedtheirexistingtalent
managementsuitevendorforcoreHRorintegratedthetalentmanagementsuitewiththeirthirdparty
coreHRMS.Indoingthis,customershopetoremedyanumberofdataqualityissuesthattheyhave
facedinyearspast(see"IntegrationChallengesCanThwartGettingValueFromTalentManagement
ApplicationInvestments").

TheHypeAroundMobileRunsAheadofActualUsageforMostTalent
ManagementSuiteFunctions
Manyvendorscannowdemocompellingmobileofferingsformanagers,employees,executivesand
applicants,butlargescaledeploymentsarestillhardtofind.Forexample,despiteaplethoraofdemo
scenariosshowingtalentreviewand/orsuccessiondataontabletsorsmartphones,lessthan5%of
talentmanagementsuitecustomerreferencesurveyrespondentsarecurrentlyusingthiscapability
however,almost41%eitherplantodeploywithinthenext12monthsorareconsideringitwithin24
months.Deploymentoflearningcontentonmobiledevicesismorepervasive:15%arealreadyusing
thiscapability,and35%areconsideringimplementingitwithin24months.
Recruitingcontinuestoleadthewayinmobileusagemorethan19%ofcustomerreferencesurvey
respondentscurrentlyenablecandidatestousemobiledevicesduringthehiringprocess,andover31%
plantodeploythiscapabilitywithin24months.Morethan17%ofsurveyparticipantscurrentlyallow
mobiledeviceaccessbyrecruitersandhiringmanagers,andanother31%areconsideringdeploying
thiscapabilityinthenext24months.Evenifalloftheseorganizationsfollowthroughontheirplans,
mobilerecruitingusagewillbeatorunder50%ofcompanieswithinthenexttwoyears.

Social/CollaborationUsageGrows,butIsNotYetPervasive
Socialsoftwarehashadasignificantimpactonrecruitment(itisbeingusedbyalmost44%of
respondents,withanother22%planningtodeploywithin24months),buthasnotyetachieved
significantadoptioninperformanceorlearning.Overonethirdofcustomerreferencesurvey
respondentsreportuseofcollaborationworkgroups(34.6%),withanother16%planningorconsidering

implementingthemwithin24months.Usageofleadingedgesocialcapabilitiesfallsoffconsiderablyin
thesurveysampleasanexample,only13.6%ofrespondentscurrentlyusesocialnetworkanalysis,
andalmostthesamenumber(13.7%)areconsideringusageinthenext24months.

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