ServiceNow Acquires Talent Management Software Company Hitch Works
ServiceNow is acquiring Hitch Works, a cloud-based software company that helps customers to identify which employees are best suited for projects based on skills and interests. Financial terms of the deal were not disclosed.
This is technology M&A deal number 527 that ChannelE2E has covered so far in 2022.
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ServiceNow’s Employee Workflow Strategy
ServiceNow is perhaps best known for its IT service management (ITSM) software capabilities — which mid-market MSPs are embracing for co-managed services.
In contrast, buying Hitch Works is part of a larger ServiceNow Employee Workflow portfolio strategy. The goal is to “support employees at every stage of their career, including Employee Journey Management, which enables employee learning and feedback in the flow of work.”
Hitch Works, founded in 2017, is based in Seattle, Washington. The company has 45 employees listed on LinkedIn. HR-industry veteran Kelley Steven-Waiss, who served as CHRO and CIO of HERE Technologies, founded Hitch. The company is led by CEO Heather Jerrehian, a serial entrepreneur and one of the founders of the venture capital firm, How Women Invest,. Steven-Waiss and Jerrehian are expected to remain with ServiceNow post-acquisition, the buyer said.
ServiceNow will build Hitch’s capabilities into the Now Platform, beginning with its Employee Workflow solutions, the buyer said. ServiceNow also expects to later expand Hitch’s features across its portfolio for customer service, IT, and developers, the buyer added.
Meanwhile, at IT By Design for MSPs: In some ways, the ServiceNow-Hitch Works deal parallels similar work in the MSP market by IT By Design. Indeed, IT By Design is developing Team GPS, a cloud-based application that is designed to help MSP employees on their career journeys. Among the capabilities to note: Team GPS helps MSPs to manage their employees; job performance and satisfaction; workforce culture; and overall business planning, Kam Kaila, president of IT By Design, told ChannelE2E in 2021.
ServiceNow Acquires Hitch Works: Executive Perspectives
In a prepared statement about the deal, Gretchen Alarcon, vice president and general manager of HR Service Delivery, ServiceNow, said:
“If skills are the new currency for business, insight into these skills is critical to driving talent retention and adapting to evolving business needs. But skills management has historically been siloed, with numerous point solutions and fragmented processes that don’t work together. With Hitch, ServiceNow will streamline skills intelligence on a single platform to help business leaders match employees with meaningful work.”
“AI-powered skills intelligence is the foundation for the future of work. Joining forces with ServiceNow allows us to scale our skills and talent mobility solutions across a global ecosystem of business leaders, managers, and employees. Together we will make work more meaningful and purpose-driven for employees and deliver better business outcomes for companies.”
“A productive and engaged workforce is the greatest asset of an organization. As we emerge from the pandemic and face the challenges of the Great Resignation, employee experience is the key differentiator to winning 21st century talent. ServiceNow will advance Hitch’s vision of creating the next generation of workforce and skills solutions.”
ServiceNow expects to complete the acquisition in Q2 2022.