May 2009 - Voyager Predicts Market Consolidation
Voyager predicts that consolidation in this overcrowded software market space is not only inevitable, but vital to ensure the industry’s customers are served by resilient providers.
“The market for recruitment software is already very crowded and with the recession, it is inevitable that the number of providers will diminish,” commented Nick Ray, chief executive of Woodcote, the group that includes Voyager Software. “The question is how many recruitment software providers can the industry support? Certainly not as many as there are today.”
As featured on Onrec and Recruitment Consultant.
The recruitment industry is facing an unprecedented downturn, which, inevitably, is affecting the revenues of the recruitment software market. However, it is Nick Ray’s view that the smaller owner-managed software businesses are potentially in the weakest position. “They face falling revenues, increased bad debts and the disappearance of bank support that would bridge them through a period of downsizing,” he continues.
To achieve a solvent rescue, Voyager Software believes that companies need to be pragmatic about their future options. Those in difficulty would be better approaching established players, such as Voyager Software to arrange a merger rather than facing insolvency and then attempting to resurrect the business within a market that will have reduced confidence in the smaller vendor.
Voyager Software Limited is one of the UK’s largest recruitment software solution providers, with thousands of users of its innovative products and services in over 20 countries.
“Through a pragmatic approach to long term sustainability, customers would have the security of knowing their product was supported by a large and established player, creditors and staff would have a better outcome and the reputation of the business would suffer less.” Adds Nick Ray. “Our advice to any recruitment software vendors that are feeling the pinch, is to talk to potential suitors early, rather than leave it too late.”