Nate Swanson of ThinkEquity Partners came out with a bullish report about Taleo, saying that the company is signing a lot of four-year deals, where previously it was signing three-year deals.

Swanson says Taleo has opportunities internationally, among small- and medium-size businesses, and with its new performance-management product.

On the topic of “turnover vs. new jobs,” he writes:

“While a prolonged recession could slow the growth of new deals, we believe growth in the HCM space is accelerating, driven by a combination of factors that have increased the need for consistent, systematic HCM processes. True, companies may add fewer new jobs during an economic downturn, but we believe the overall rate of turnover is actually increasing, and that more and more companies are looking to leverage the Web to drive efficiencies into their recruiting processes-both of which we believe are long-term positive drivers of Taleo’s business.”