HR.com’s Marc Miller has released his “Outlook for 2006 Technology,” and he has some observations worth noting.

His 10 major points:

1. HR technology software applications will continue to
increase in functionality. Applications must address the
changing demographics and needs of the aging
workforce and the global workforce.

2. Vendors who were in “best of breed” or application
“niches” will seek to expand their offerings.

3. Mid Market organizations will be a major target of all
vendors including the traditional ERP vendors who will
down market, and best of breed vendors who will seek
to offer new one-stop bundled solutions.

4. HRO as a strategy will continue in its wide acceptance,
now considered a mainstream approach with clear cost
benefits.

5. HRO vendor activity such as mergers and acquisitions
will level off or cease in 2006. Alliances between
multiple providers, though, will continue.

6. Organizations will increase their HR Technology spend
budget for 2006/7.

7. HR executives will firmly grasp the need for
performance metrics and other measurements to
preserve their worth and to gain credence as a strategic
business partner in organizations. Driven by that desire,
HR executives will seek software applications that make
such metrics user friendly and easy to calculate and
present.

8. Off shore deals by companies headquartered in
American companies will be limited and possibly
legislated against at the state level. Although mostly
pertaining to IT support, HRO with off shore support
will not be readily accepted by American workers.

9. Privacy and Internet communications standards
such as XML consortium standards will continue to be
issues and will be embraced by more organizations,
especially those in a global marketplace with
global structures.

10. “Web Services” as the next new thing or wave in
technology and service delivery will emerge and make a
very visible initial impact on HR software delivery.

Here’s some commentary at the HR Technology Discussion Board