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Executive Summary
With the economic recovery well underway, corporate spending, including IT spending, is beginning to revive. At the same time, investments in human capital related projects is increasingly being viewed as strategic, driving growth in the human capital management (HCM) market. While these drivers have favorably impacted the demand for HCM applications, the supply side (vendor landscape) remains extremely fragmented and populated with many small vendors. Despite a number of high-profile mergers and acquisitions, and the anticipated growth in the market, there are still too many vendors and the vendor consolidation will continue and accelerate. Navigating the landscape and avoiding product dead ends will remain an overriding factor as companies evaluate and implement robust HCM solutions. For 2005 we expect to see robust growth in this segment as more companies deploy HCM solutions to better optimize their intangible assets and drive improved strategy execution.
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