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Naomi Bloom

Jim, one big change for 2009 will be that some HCM software vendors will simply close their doors, unable to continue and with no one willing to buy them. For hosted offerings, this will test our expectations (and our laws) about how customers continue operating when not only their software but also their data is "in the cloud." I also expect to see some current HRO providers at the higher end of the market refocus themselves on a subset of what they had been offering or exit the business entirely with a sell-off of customer contracts and related assets. Here too there will be tests of those expensively advised HRO contracts and service level agreements. 2009 is going to be a very tough year, but it will be a great time for buyers of HR technology to get prices they can afford from the strongest vendors.


I plan to see a cash crunch squeeze some players out the market entirely, as you suggest. Also, I agree that workforce planning and analytics are going to get big in order to aid in "right-sizing" and improving productivity (at least that will be the business justification). The challenge here is that time to value for such solutions is so long that you can expect phase I of these projects to be completed by about the time we've rebounded from this recession.


Speed of implementation certainly is a challenge for timely impact. That is why companies should not delay investigating opportunities here.

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