In late 2011, SAP announced that it was buying SuccessFactors for a cool $3.4 billion. Consumer tech blog TechCrunch panned it as the most boring tech story of that week. Check out the link if you think I’m exaggerating.
While a lot of people who’ve invested their careers in the HCM industry were outraged at the pithy reporting of such an important acquisition, we here at The Starr Conspiracy saw the purchase as just another opportunity. After all, HCM is a growing market.
In 2006, the HCM market was at $6.1 billion and was largely dominated by a few players. After some down years during the recession, HCM has continued its climb. This year, HCM surpassed $8 billion.
IDC has predicted that growth will continue in the HCM market through at least 2016. That growth rate (just above 8 percent) will leave the HCM market at somewhere around $11 billion in three years. Considering that market share in most HCM solution categories is now split among dozens of significant, profitable players, that increase is nothing to sneeze at. In fact, emerging HCM segments, pursuing a market share strategy could result in market dominance.
While tech blogs obsess over the latest Apple gadgets and consumer software, we can quietly work in the background with the best players in the HCM space and capture a piece of that big pie. Maybe that has you hitting the snooze button on your alarm clock, but it gets us excited here at The Starr Conspiracy.