Having deployed mission critical solutions through its learning management solutions (LMS), Nasdaq-listed SumTotal Systems is eyeing acquisitions in the compensation management and recruitment solutions segment. While the company will be launching a solution for compensation management, it is planning to enter recruitment space as well through the acquisition mode.
Announcing this, Donald E Fowler, CEO, said that the company’s priority would now be into recruitment segment. As part of its R&D process, the company is planning to release a compensation management solution by first half of 2008. The solutions are being developed in its Florida centre and tested at the Hyderabad centre. ”The Indian team would also be working on new technologies to be used in hand-held devices and developing content,” he added.
The company had raised about $35 million to improve $35 million recently to improve its balance sheet and now has a net cash of $40 million. This would help in facilitating its acquisition plans and pay off debt.
Further, the company is exploring opportunities for increasing its marketing efforts. ”Though it is a small market, with the retail boom, we are expecting huge opportunities for the talent management system, he added.
Talking about the trend, Fowler said that attrition is high in knowledge intensive organizations and employers are seeing a shrinking pool of talent in mid-level management. ”Talent management is not just talent attraction and has to be handled as a management function,” he said. Its solution has helped in increasing revenues, decreased expensed and reduced the cycle time, he said.