Date published: 01.09.08 - not release date

New Research Shows Superior Revenue Growth Achieved through SaaS-Based Human Capital Management Usage

New Study from Saugatuck Technology Available for Download

SAN MATEO, Calif. – April 15, 2008 — SuccessFactors, Inc. (Nasdaq: SFSF), the global leader in on-demand performance and talent management solutions, today announced the availability of research demonstrating that companies that deploy performance and talent management solutions via the software-as-a-service (SaaS) model drive both stronger revenue and net income growth in comparison to industry peers.

The research found a strong correlation between accelerated revenue growth and length of time deployed on SuccessFactors’ solutions. The study also shows that the efficiency and effectiveness gains from SaaS-based human capital management technology contribute to superior top line and bottom line results.

The study, “Strategic Talent Management Solutions and Superior Topline Growth,” conducted by Saugatuck Technology Inc., a well-respected market strategy consulting and research firm, and sponsored by SuccessFactors Research, is available for download at: http://www.successfactors.com/research/financial-advantages/.

The premise tested by the Saugatuck research team was whether “users of on-demand Performance and Talent Management solutions demonstrate superior financial performance when compared to industry norms.” The team collected data on 157 companies that were publicly-traded, have more than 500 employees and had SuccessFactors implemented for at least 9 months. The research shows that the gap between SuccessFactors’ customers and its competitors is significant and grows over time with the usage of SuccessFactors' solutions.

After one year of usage, SuccessFactors’ customers experienced nearly one percent in absolute percentage points of revenue growth over its peers, however over a 36-month period, the margin grew to well over 10 percent, reflecting 98 percent stronger revenue growth. The research indicates that the longer customers used SuccessFactors, the more their revenue growth continued to accelerate.

“This research demonstrates that SuccessFactors’ solutions dramatically drive revenue growth for customers, as two to four percent in the top line is becoming typical for customers of all sizes,” said Paul Albright, chief marketing officer and general manager of SMB for SuccessFactors. “Saugatuck’s comprehensive study using our customer base and the expertise of our SuccessFactors Research group gives companies the ammunition they need to select and deploy solutions that contribute to profits.”

Based on its findings, Saugatuck attributes the improved financial performance of SuccessFactors’ customers to efficiency gains from process improvements in key performance and talent management areas and effectiveness gains from improved execution of business strategies. Efficiency gains can be immediately realized through the SaaS value proposition and productivity improvements that typically result from conducting ongoing, relevant performance reviews. Effectiveness gains appear over time, resulting in numerous benefits that drive a company’s growth, including improved retention of top performers, enhanced alignment of business strategies and objectives across the company, and superior employee engagement in the company.

SuccessFactors’ solutions drive value from and for every employee in an organization, resulting in improved performance and a positive impact on the income statement and the balance sheet.

About SuccessFactors, Inc.

SuccessFactors is the leading provider of on-demand employee performance and talent management solutions that enable organizations of every size, across every industry and geography, to achieve high-performing workforces by enabling goal alignment and execution, talent development and planning, and pay-for-performance initiatives. SuccessFactors currently has more than 1,750 customers across over 60 industries, with more than 3 million end users in over 156 countries using the application in 22 languages. Founded in 2001 with offices around the world, the company employs more than 700 people, all passionately focused on revolutionizing the future of work.

For more info, visit http://www.successfactors.com.

For more info, contact:

Kim Squire
Devonshire Marketing
Tel: 0870 7000 166