White Paper IDC – The Role of Competency-Driven Talent Management in Digital Transformation

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European companies today are facing major challenges because of digital transformations in their business models. Their processes are shifting away from established methods and traditions towards new approaches that are facilitated by digital, and often cloud-based, technologies.

This digital transformation not only impacts business models, but jobs as well. Traditional work is evolving through technology to become digitised, and subsequently requires new skills. Employees who possess these skills are key to the organisation’s success and employers need to do all they can to develop and retain them.

As part of the shift to digital work organisations train their employees on the new skills they will need. This creates a demand for HR processes that can handle the employee training, mobility requests, and talent management needs a digital transformation creates. Furthermore, these processes are all enhanced when HR undergoes a digital transformation as well. Talentsoft, a SaaS vendor of HR and talent management technologies, has devoted itself to playing a key role such digital transitions.

To assess the effects of the digital transformation on talent management processes IDC has investigated 4 European companies using Talentsoft’s solution.


The four companies covered in this white paper are representative of current European macroeconomic dynamics, which are changing employee management and talent strategies. In developed economies, talent gaps have appeared even though European economies are far from full employment.

European organizations are increasingly knowledge-driven, with payroll and services procurement the largest cost components. Knowledge-based enterprises compete fiercely for quality of talent.

*Meanwhile, consumer technologies such as cloud computing, mobile apps, real-time analytics, and social networks have entered the workplace and are fundamentally changing the role of HR. Cloud-based HCM applications allow managers and employees to manage and execute key talent processes themselves, while HR professionals can instead facilitate processes, analyze data, and perform higher-value, strategic tasks.


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Bo Lykkegaard, Research Director, European Enterprise Applications at IDC – December 2015

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company.