IBM delivers HRsmart's ATS and other HR solutions to mid-market via new e-business on demand program
IBM's on demand strategy is particularly compelling to medium-sized companies. "It is harder for medium businesses to maintain the skills to keep pace with accelerating technology changes. These companies must also demonstrate an immediate return on their technology investments," said Marc Lautenbach, general manager, IBM Global Small and Medium Business. "e-business on demand addresses these critical skill and cost issues, and delivers the solutions these customers need to improve their businesses." AMI Partners estimates that medium-sized companies will spend more than $150 billion on IT products and services in the next three years.
Why has IBM entered the ATS market?
Its customers are asking for HR solutions. According to Mike Riegel, global marketing executive for e-business hosting at IBM, mid-market customers will see the greatest value from on demand. "They don't have large IT staffs and yet they still need the IT and business process applications. They told us they'd like to start with some of the back-office things, something for HR, CRM, accounting."
How is IBM going to deliver the goods?
IBM is partnering with HRsmart. "We're not in the applications business. Particularly in the mid-market business, the independent software vendors (ISVs) are the cornerstone of the opportunity for us. Referring to the four ISVs in the ebod program, Riegel says "They're all leading-edge ISVs in that they're very easy to work with to adapt their software to the on demand model. [T]hese are the vendors our customers are asking for." HRsmart's premium solutions, reasonable prices, and history of providing superior service made it an ideal ebod partner. "The mid-market is being neglected by the current market leaders, but HRsmart's affordable, powerful solutions met all the requirements for IBM's ‘utility' model designed for this market," says Scott Johnson, HRsmart's vice president of strategic partnerships. See the official IBM announcement at: http://www.ibm.com/news/us/2002/11/22.html.
Is ebod just for small and medium businesses (SMB)?
HRsmart's ebod solution targets the underserved SMB marketplace, but the company is also working with IBM to better serve larger clients. Long-time HRsmart client Avis, a wholly owned subsidiary of Cendant Corporation (NYSE: CD), is moving to IBM's new Linux Virtual Services zSeries mainframe managed hosting. This will provide Avis and soon many more of HRsmart's industry leading clients the time-tested performance and scalability of an IBM zSeries mainframe without the high up-front and ongoing maintenance costs. This new IBM e-business on demand offering provides HRsmart's larger clients a uniquely powerful solution at a very affordable price. Some of HRsmart's other clients include Dupont, Sylvan Learning Systems, Sprint, Aramark, and Wyndham International.