According to the Towers Perrin's 2009 HR Service Delivery Survey “Technology is now viewed as an effective cost-cutting and service delivery tool.”

This supports what we have been saying about performance management technology. Savings are achieved in a number of ways.
-time saved tracking down incomplete appraisals
-time saved tracking performance conversations
-more frequent performance feedback leading to improved alignment
-time saved communicating changing business objectives
-time saved linking individual goals to business goals
-tighter alignment, therefore, less wasted employee time and effort
-quicker notification time that goals need re-adjusting or are out of line
-time saved identifying performance issues and dealing with them appropriately
-more appropriate training identified
-improved accuracy of performance appraisals

And this is not an exhaustive list of the potential savings.

Thirty-five percent of survey respondents identified talent and performance systems as a “2009 top HR service delivery” issue.

References:
Towers Perrin. “Evolving Priorities and the Future of HR Delivery” [www.towers.com/news]. 2009.