Applicant tracking system market in the US to grow at a CAGR of 7.58% during the period 2016-2020.
The research study covers the present scenario and growth prospects of theapplicant tracking system market in the US for 2016-2020. To calculate the market size, the report considers the revenue generated from the software deployed using the following models: on-premises and cloud.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the applicant tracking system market in the US:
- Innovative upgrades to software
- Increasing demand for cloud-integrated software
- Rising need for cost savings
- Growing need for strategic and improved hiring decisions
Innovative upgrades to software
Traditional ATS solutions were used to store, track, and manage resumes. Today’s talent acquisition systems are designed to help applicants, managers, and recruiters do more. These integrated systems allow applicants to apply for jobs through mobile devices and take part in interviews through video conferencing. These systems also help managers make sure that they are selecting the best candidates.
“Vendors such as Lever, SmartRecruiters, Greenhouse Software, Jobvite, and Gild have helped redefine the recruitment platform. These companies have linked analytics with sourcing, candidate relationship management, video interviewing, and traditional applicant tracking in new ways,” says Amrita Choudary, a lead analyst at Technavio for enterprise application.
Increasing demand for cloud-integrated software
The demand for cloud-integrated ATS solutions is increasing rapidly. Cloud solutions act as an infrastructure design for organizations with improved efficiency and easy deployment methods. The budget constraints for IT infrastructure and the cost advantage of on-demand software subscriptions are the primary factors responsible for the increased adoption of cloud solutions. Also, cloud services do not have overhead costs of space, power, and cooling incurred with the deployment of in-house solutions. Hence, the growing popularity of cloud bodes well for the growth of the market during the forecast period. Employees across the globe are becoming increasingly mobile and tend to work from various locations globally and telecommunicate with their workplace. Cloud-integrated ATS allows recruiters to access the solutions from any computer or device with a browser and an internet connection. This saves time and reduces operating costs for organizations in terms of searching for and connecting with job seekers. iCIMS is one of the leading providers of talent acquisition software in SaaS deployment.
Rising need for cost savings
The customer base of many US companies has grown exponentially with globalization. In this highly competitive business environment, companies are looking at methods to reduce costs. As the workforce is a major expense component for any organization, it is imperative for firms to manage their workforce effectively. The presence of a large workforce increases the complexity in planning, leading to decreased productivity.
“Effective deployment of ATS enables easy recruiting of workforce. The software also ensures the availability of the right employee at the right place and at the right time. This, in turn, avoids overstaffing, decreases administrative costs, and helps achieve increased cost savings,” says Amrita.
Growing need for strategic and improved hiring decisions
Organizations are increasingly using strategic hiring. Strategic hiring is an important process for organizations as it helps them connect with the right candidates. It enables hiring managers to understand how the hired candidate is appropriate for the selected position. When it comes to strategic hiring, ATS provides insight that helps executives select, train, and retain the best people.
Apart from providing resume storage and resume searches, ATS solutions help hiring managers make more accurate hiring decisions. It is very critical for organizations to hire the best candidates for important roles. These solutions will consider various factors such as interview guidelines, assessments, and eligibility before hiring. In addition to HR professionals, these are used by many SMB owners to make better hiring decisions and reduce the cost for their businesses.
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.