The global applicant tracking system market is estimated to witness substantial growth in the forthcoming years owing to growing need for better hiring decisions in organizations to reduce recruitment expenses. Applicant tracking system (ATS) is an application or software that manages recruitment process in an organization by collecting and sorting resumes available in database. ATS also collects resumes and provides online view of job seekers after indexing and scanning their resumes. Most of the organizations extensively employ ATS applications to manage job applications. Data related to candidates looking for specific jobs can be collected from social media platforms, such as Facebook, Twitter, or LinkedIn, and internal applications via ATS. The system helps in eliminating requirement of human resource professionals in making recruitment decisions.
Increasing use of social media platforms in recruitment process by candidates and organizations is anticipated to augment the market growth in coming years. In addition, shifting preference for ATS over conventional recruitment methods attributed to reduced cost and time per hire can stimulate the product demand. The system does not require manual scrutinizing or any physical space for conducting interviews, and as a result, is likely to eliminate the need for newspaper ads. It can also be used to post job openings on various job portals and generate interview requests using e-mails. Additional features, such as automated resume ranking, applicant tracking, pre-screening questions, response tracking, and customized input forms save time and cost related to selection of suitable candidates. Moreover, increasing number of job applications are expected to fuel adoption of ATS among organizations to manage data across various storage platforms, such as network file shares, datacenters, hard disks, and local machines.
Lack of awareness regarding benefits of applicant tracking systems can hamper the market growth in the coming years. In addition, complexity in integration and automation process and growing concerns regarding privacy and data security are likely to hinder the market growth in the forthcoming years.
Rising demand for skill based professionals in various fields to perform specific jobs is likely to present lucrative growth opportunities in the market.
The market can be segregated on the basis of deployment, component, organization size, and application. The key deployment types could be cloud and on premise. Software and services are the two major components available in the market. Based on organization size, the market includes small and large enterprises. Government and public sector, IT and telecommunications, BFSI, manufacturing, and healthcare and life sciences are the leading applications in the market.
North America is a leading region in the market owing to rising adoption of innovative technologies, such as artificial intelligence, among organizations to save time and expenses involved in recruitment process. Moreover, increasing number of organizations using ATS application to shortlist potential candidates can stimulate the market growth in the forthcoming years. For instance, ManpowerGroup Solutions, a prominent workforce solutions company, expanded into an innovative platform called IntelliReach. The platform offers organizations the comparative benchmarks and transparent analytics they require to execute their workforce strategy. In addition, it offers advanced tools and in-depth analytics such as Total Workforce Index.
Asia Pacific is a prominent region in the market. Countries, such as Japan, China, and India are the leading contributors to the market growth. Rising demand for efficient recruitment process and complete data security while operating in cloud, virtual, and physical environment in organizations is anticipated to boost the regional market growth. In addition, increasing focus on improving candidate’s experience during recruitment process and use of analytics metrics to shortlist candidates can augment the market growth in the coming years. Launch of advanced ATS software by manufacturers to support organizations in developing countries is anticipated to propel the market growth. For instance, Freshworks, a leading provider of cloud-based business software, launched Freshteam, a recruitment management software. The software helps companies in their recruitment processes, such as appointment with candidates, organization of talent acquisition function, and alignment of human resources to business goals.
Some of the leading companies operating in the applicant tracking system market are SilkRoad Technology, Oracle, SAP, IBM, Cornerstone, and Greenhouse Software.
Research Support Specialist, USA