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The Seven Year Itch: What Will Happen to Taleo’s Customers in 2018?

2018 promises to be a pivotal year in talent acquisition technology. I’m not talking about the amount of new providers, AI discussions, or strides to improve the candidate experience. I’m talking about the fact that many of Taleo’s (now Oracle) key customers will be nearing the end of their seven year contracts. It is the elephant in the ATS room these days. Providers are eagerly anticipating some type of mass exodus of enterprise clients and hoping to gain more market share. But the question remains: are these customers really going to leave Taleo, and if so, where will they go?

The answer is not as simple as we might think. Sure, we can expect some customer churn. Today’s companies have options and the next generation of ATS providers have been building out capabilities and trying to move up market. Not to mention Workday’s growing presence in ATS deals. But the reality is that many companies are planning to stick with Taleo. They need a provider that can support a global enterprise organization, provide the scalability and security they need, and one that can integrate with their HRMS. In the ATS world, global providers are few and far between.

In conversations this year, we found out that many companies have lowered their expectations for their ATS and are focusing more on recruitment marketing and the ecosystem of providers that integrate with their core systems. The ecosystem is where they see innovation and transformation. Yet, the challenge is that many of these providers are still learning how to support a global enterprise client and don’t necessarily have a ton of experience.

Below are some of the key criteria that are important for a global talent acquisition department (for both ATS and ecosystem providers):

–          Security and Scalability: It goes without saying that security and scalability are the most important considerations for global talent acquisition. These systems must be able to scale with increased demands and provide the security that will satisfy both HR and IT.

–          Resources: A large global organization needs more than a few representatives to support their complex requirements. They need a dedicated team of representatives that can work with them from selection through implementation and help tackle challenges with adoption. They need the right resources who will be willing to listen and execute.

–          Integrations: Integrations are particularly complex for large organizations — especially when you think about the amount of data that these organizations need to manage. Companies should look at providers that have a strategy around integrations and a history of working with clients to ensure that integrations go smoothly.

–          Partnership: In talent acquisition technology, companies need to think less about selecting a system and more about selecting a partner who will support them. Providers need to listen to their clients’ needs and be open to making adjustments to the product and their roadmap.

Aptitude is in the process of updating our ATS Index this summer and many of these themes and differentiators will be addressed in more detail in this year’s report. Stay tuned…