The most important thing to look for when selecting an ATS provider just may be YOUR job’s future! What are the consequences if you should select the wrong provider as your company’s ATS solution provider? What potential impact would a poor selection have on your future within your organization? What would your CEO think? There are so many ATS providers out there nowadays that ATS’ are becoming a commonplace commodity. And, there are several new ATS providers entering the marketplace EVERY quarter!
This market ‘crowding’ continues to accelerate the transformation of the ATS marketplace. Not only have standard ATS prices fallen dramatically by an average of 35%-50% over the past 3 years due to this increased competition but now the ‘New’ trend is to offer a completely FREE ATS solution. This may seem to be an unsustainable business model at first glance – or maybe it’s just plain genius?!?! Not surprisingly, the market is responding very favorably to this new free ATS trend by literally signing up by the thousands. And, institutional investors are also backing this new trend heavily as witnessed by several recent multi-$million entrances into this space including SmartRecruiter’s (Free ATS provider) recent follow-on capital raise of $25+ Million!
Even more alarming is the fact that while the low-cost or ‘Free’ trend is transforming the lower end of the ATS market spectrum, Big Data is transforming the upper end of the ATS marketplace spectrum in a big way! These Big Data players, including no other than Oracle, IBM and ADP have just recently upped their ante big time in the HCM and ATS arena. They are investing their enormous budgets on developing new HCM and ATS solutions that are not only being targeted for the upper end of the marketplace spectrum but they are now aggressively acquiring current market leading ATS/HCM companies in order to penetrate and dominate the mid-to-lower end spectrum as well.
With all the new free, low-cost and ‘freemium’ providers attacking the marketplace from the low-end combined with the Big Data players crushing down on the marketplace from the high-end, where does that leave the 50+ ‘established’ small to mid-level ATS providers? Can they continue to deliver guaranteed service levels while their margins continue to get severely squeezed from both ends of the market? Can they really effectively compete over the long-term?
In summary, you MUST keep YOUR job’s future in focus when ultimately selecting your company’s long-term ATS provider. Remember, no one loses their job because they picked the likes of Oracle, IBM or ADP to process and protect their company’s critically sensitive employment data. I’m just saying…
Founder and CEO
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