The Magic Quadrant noted that the talent management market is segmented, and the integrated talent management suite is by no means the most popular option. Organizations seeking a so-called best-of-breed, specialized tool for functions such as recruitment, compensation management and learning will continue to investigate and invest in niche products.
But Kutik said customers often buy one or two modules from a talent management suite vendor with the intention of building out the suite. Most clients' point of entry into an integrated talent management suite is currently performance management, according to Otter.
"Of the talent management components, recruitment is the one that's probably the least consumed as part of a suite," he said. "Performance is more central, so if somebody buys performance, they're much more likely to see that as a hub from which to expand into other elements of talent management."
The report also states that customers interested in purchasing an integrated talent management suite will likely have to make some functional trade-offs. "No one vendor dominates all components of the suite," it reads. "Most vendors are very strong in one component and have varying capabilities in others."