The world of HR solutions has undergone some dramatic changes in the past few months and more are on the way.
Oracle Corp. purchased HR software company Taleo Corp. for $1.9 bn, SAP acquired employee performance management company SuccessFactors for $3.4bn and, most recently, IBM agreed to acquire Kenexa, a HR software manager, for $1.3bn.
Why the rise in acquisitions? Large enterprise software firms are looking to modernise their offer by making cloud-based services available to their clients. This technology looks set to replace the previous model based on selling software licences. The shift to a cloud based offering is not exclusive to the HR management space and is likely to take place in other business sectors as well.
This new direction could benefit organisations with strong relationships with key technology companies, and enable them to leverage their existing contracts to obtain better service. On the other hand HR professionals need to remain cautious as the decision making power could gradually shift towards their colleagues in IT. There is little doubt that HR teams have already identified the benefits of working closely with IT but now, more than ever, is the time to strengthen these relationships.