Sunday, August 3, 2008

Talent Management 2.0 as a Hedging Strategy to Recession

Despite of global economy slowdown worries, two Talent Management vendors with dominant presence in online Recruiting space reported record revenues this week. StepStone, covering 13 European countries, reported quarterly revenue of EUR 30.9m (approximately $48m) driving year-over-year growth of 30%. Corollary to this, Taleo, with 13% revenues outside North America, reported quarterly revenue of $38.8 million, driving year over year growth of 25%.

Chart: DOW & TLEO Courtesy: Yahoo Finance

This growth pattern is essentially a manifestation of prevailing need for efficient Talent Management practices in difficult economic times. The plummeted budgets and reduced headcounts are driving the perennial need to find few talented people that can do more with high quality and at reduced cost. More than ever, now it is imperative for organizations to leverage technology to reduce recruiting/sourcing dollars, enable operating synergies, and reduce time and cost to hire. Hence the continued market demand for these leaders in E-Recruitment space.

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