IDC Predicts Growth Spurt for Workforce Performance Management Market as the War for Talent Re-Emerges in 2006

FRAMINGHAM, MA – March 8, 2006 – According to a newly released IDC study, this will be a pivotal year for the workforce performance management (WPM) market as the war for talent, which involves the retention of top performers, becomes a major priority for companies in 2006. The study finds that WPM is the fastest growing segment of the rising talent management market, as sophisticated WPM software and services are now readily available to provide greater alignment of corporate objectives and visibility into both individual and organizational performance. IDC forecasts that worldwide spending for WPM services will experience a compound annual growth rate (CAGR) of 16.3% during the 2006-2010 forecast period.

"All areas of talent management are experiencing growth, and workforce performance management is no exception," said Lisa Rowan, program manager for IDC's HR and Talent Management Services. "The war for talent is re-emerging and firms are recognizing that they are once again competing not only for product superiority, but for a high performing workforce, which is key to competitive advantage. Suppliers are responding with new strategies and offerings to help them win the battle."

IDC offers the following key points for potential buyers of WPM software and services:

— Take advantage of others' best practices, rather than automating a broken or ineffective process

— Build a collective WPM plan with a specific end goal in mind

— Resist the temptation to build a WPM system in-house

IDC also offers essential guidance for vendors of WPM solutions:

— Proactively identify opportunities for WPM within client organizations, as prospective buyers are often not aware that they are in need of WPM systems

— Communicate the value of WPM through targeted messages that set realistic goals and expectations

— Create tangible case studies in order to leverage successful client experiences

The study, Worldwide Workforce Performance Management 2006-2010 Forecast (IDC #34907), presents 2004 actual revenue for software and 2005 actual revenue for services, a comparison of growth over the prior year, and a five-year forecast for the worldwide market for workforce performance management software and services. In addition, the study provides IDC's WPM maturity model, essential guidance for potential buyers and suppliers of WPM solutions, a list of recent contracts for WPM by vendor, and an examination of the changing WPM vendor landscape. The document also presents the key market drivers, the macroeconomic factors, and any future risks and opportunities for the workforce performance management market.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email

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