IBM to acquire cloud-based HR management firm Kenexa
IBM has signed a $1.3bn deal to acquire a cloud-based human resources (HR) management firm Kenexa.
The deal is expected to make IBM a competitor to database maker Oracle and German business software maker, SAP who have recently entered the HR software market.
IBM social business general manager Alistair Rennie said: "Every company, across every business operation, is looking to tap into the power of social networking to transform the way they work, collaborate and out innovate their competitors."
Kenexa offers various cloud-based applications for HR functions which include recruiting, compensation, performance management and employee surveys, in addition to consulting services.
With the acquisition, IBM is aiming to deliver business applications via the web through Kenexa’s products, while also packing and incorporating them with its own wares.
IBM revealed that the implementation of social business technology is assisting the rise of big data and the requirement for analytics in the enterprise.
According to the global IBM study, about 57% of CEOs recognised social business as a top priority and more than 73% are investing to draw insights into available data.
The survey also revealed that about 70% mention human capital as the single biggest contributor to sustained economic value.
According to IBM, Kenexa ‘s front-office process solutions will allow it to provide strategic consulting, a social technology platform and capability to assist clients allow a smarter workforce.
Kenexa claims to offer services to about 8,900 clients across various industries which include financial services, pharmaceuticals, retail and consumer, as well as more than half of the Fortune 500.