In an article last week in Workforce Management Magazine, the recent study from IHRIM is cited regarding HR technology spending holding steady in 2009.
In the study, 42% of the nearly 210 respondents reported that their human resources information technology budgets will remain the same in 2009 as in 2008, the association said in a release Friday, November 21. Another 21 percent of participants said budgets will increase by an average of 23 percent, while 37 percent said their budgets will decrease by a median of 15 percent.
So 63% of respondents, almost two-thirds, indicate their HR technology budgets will stay the same or increase in 2009. This is great news for the HR industry as a whole and closely mirrors what HRchitect has told its clients and prospects throughout 2008 through meetings, webinars and other forms of communication.
While there is uncertainty with our current economic conditions, companies absolutely have to look to the future as these conditions won’t last. I personally believe our economy will start to turn around in a positive direction by the third quarter of 2009.
The HR Systems software market and the Talent Management Systems marketplace continue to be some of the fastest growing software market segments. Hiring and managing people is a must in any organization, regardless of what the economic conditions are, thus part of the reason these segments are staying hot with no sign of cooling. If they are hot now, just imagine what is going to happen when the so-called economic recovery takes place!
HRchitect’s advice to companies is to continue to invest in HR systems but be sure to consider the use of a consulting firm like HRchitect to ensure you get the right product, the right services, and the right term and pricing. The cost of the consulting services will easily be repaid many times over by helping you take the risk out of evaluation and selection projects.
Surely the vendor market will continue to consolidate in the coming years, and businesses need to do their homework when investing in an HR software vendor, but don’t make drastic budget cuts in this area based on current economic conditions. People are any organization’s biggest asset and HR Systems and Talent Management Systems aid in better managing, maintaining, or growing the employee population in any given firm. Those that utilize HR technology are simply going to have a competitive advantage over those that don’t.
For the complete article from Workforce Management, visit here.