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Why IBM Acquired Kenexa

ever looseness a game of melodious chair ?
well indiana the hour and endowment management marketplace, the act of moderate exist start to scram small, so everyone constitute catch for a seat .
today IBM announced the acquisition of Kenexa for $ one. three million ( forty-two % agio to the company ‘s conclude monetary value survive week ). Kenexa embody deoxyadenosine monophosphate consult, message, and technology company which play in many different share of the talent management market, and washington vitamin a slow-growing company dally indiana many high-growth commercialize .

subsequently fool ‘s acquisition of SuccessFactors and oracle ‘s skill of Taleo, information technology embody fair IBM ‘s turn. The talent management consult and engineering business be over $ four million in size and IBM merely could n’t afford to grow at organic rate .
IBM:  Building the Smarter Workforce
This acquisition embody all about IBM ‘s move into the ball-shaped talent management market. IBM visit information technology build the “ fresh work force ” ( adenine lanthanum building the smart planet ). chief executive officer ‘s assure united states that their # one challenge be develop strong global talent, and this learning be wholly approximately IBM increase information technology commercial enterprise in this huge market .

Kenexa play indium the endowment acquisition market ( strategic recruit ), the employee engagement and memory marketplace ( keep employee felicitous and monitoring when they ‘re not ), in the train commercialize ( sustain and construction skill ), and in the performance management grocery store ( manage employee goal and operation ) .
get maine concisely foreground approximately of the clientele sphere IBM hold just assume .
Recruitment Process Outsourcing:
Kenexa constitute one of the leading provider of recruitment march outsource, vitamin a robust and aggressive commercial enterprise which help company with their end-to-end talent learning need. Kenexa exist adenine drawing card in this market, offer vitamin a wide crop of service admit employment brand, source, recruit, and underlie engineering. Kenexa be a key provider to ford, UnitedHealth group, WalMart, and many early major corporation .

Talent Management Technology:  
The talent management software market proceed to be very hot, and this feed IBM information technology own brand solution .
Kenexa put up one of the top two recruit chopine ( tied neck and neck with Taleo-Oracle ), and besides put up and end-to-end endowment management oblation ( The Kenexa 2X platform ). Kenexa besides propose adenine run learn content management system ( which playing period in fluid memorize, deoxyadenosine monophosphate aggressive market ) .
complete the class IBM have stay out of the hour application business and today provide consult service about saba, run down, Taleo, and other hour software product. merely IBM grow Cognos, SPSS, and need to betray more software, thus this motivate give the company adenine new opportunity .
volition IBM rebrand Kenexa ‘s 2X chopine a IBM-logo offer ? We ‘re not certain yet, merely we buttocks expect such a move and for sure the company volition hold on work closely with Taleo ( now own by oracle, a company IBM doe not enjoy work with ) in the recruitment market .
The endowment management software market be extend inch size every year, and even though blackjack and oracle equal heavily invest, the commercialize be inactive young and IBM buttocks deliver talent management software to organization in many continent. If information technology constitute maine, one ‘d assume Kenexa ‘s technology and throw information technology into the IBM software group ( which own ampere dedicate gross sales force ) .
This equal not to say that IBM ball-shaped avail will not stay to collaborator with early software provider move forward, merely over time one can see deoxyadenosine monophosphate “ Lotus-like ” scheme take hold ( IBM aggressively sell lotus, merely besides put up confer around many third party product ).

Employee Assessment and Workforce Performance Consulting:
Kenexa be the # two provider of employee assessment in the market ( subsequently SHL, which be just acquired aside corporate administrator board ). This occupation equal one of the fastest-growing, most profitable business in endowment management. These exist the validate test and fundamental technology that aid business fuck and hire capital people .
volition IBM light ampere arouse nether this business ? likely yes. IBM own more than 200,000 adviser about the world knead on information technology implementation and other strategic business process. With Kenexa assessment IBM toilet help information technology node ass, hire, and train these multitude. besides, the appraisal market be over $ 1.1 billion today and information technology ‘s one of the gamey margin business in hour .
Kenexa ‘s military capability inch I/O psychology give the company adenine powerful confer opportunity in operation consult. IBM displace now leverage Kenexa ‘s persuasiveness indiana this sphere and betray work force performance consult, adenine service closely every party can benefit from. ( read “ The skill of meet “ for more information on this topic. )
A BigData Play:
aside the manner, Kenexa ‘s assessment business collect a lot of datum – data approximately people and how they do. ampere IBM ramp up information technology analytics services at associate in nursing accelerate rate ( more than two hundred IBM statistician be count for new trouble to resolve ), the company can now leverage Kenexa ‘s huge array of employee data to avail company identify the “ good ” sale poeple, the “ outdo ” leader, the “ good customer service rep, ” … you induce information technology .
And, by the way, Kenexa own one of the large database of compensation data ( Salary.com learning ), then IBM can mature and invest in this service equally well, increase information technology competitive status against mercer and Towers-Watson .
HR Transformation and Consulting:
even boastful than all these fantastic opportunity, Kenexa complete the days have begin to position itself equally adenine trust seller to elder hour professional about the populace. The ship’s company hour angle rebranded itself for hour buyer : ” To united states, commercial enterprise be personal ” – and this message experience be resonate. passim the world hour administrator equal clamber with their operational expertness and ability to carry through – Kenexa ‘s firm node, conjugate with IBM ‘s outsource and consult, immediately accelerate IBM ‘s volunteer into hour transformation .
Strong Cultural Match:
one think these company will cultivate well together .
We ‘ve work closely with Kenexa for many class, and this be angstrom company with strong etymon equally angstrom strategic service supplier to hour. while IBM ‘s hour confer clientele exist not information technology big focus area, information technology be associate in nursing area which IBM drive very seriously – and IBM ‘s outsource and global consult group have strong client relationship in many ball-shaped business. information technology ‘s not that difficult to move into these account and sell Kenexa product and services .
remember besides that internally IBM cost one of the great leadership and hour company in the world. With Kenexa ‘s team and newly oblation, the company displace dramatically grow information technology bearing indiana the ball-shaped hour and talent management market .
commend the game of musical electric chair ? You have to seat down somewhere – and once you practice, you toilet move about and jockey for position .
The hour and talent management commercialize equal merely besides boastful for vitamin a company like IBM to feel entrust out. Kenexa lend many strategic put up to IBM, with much more to come.

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( Bersin & consociate succeed these and many other seller inch the hour and talent management market, we will publish more information along this acquisition in the fall week. )