one of the biggest advantages of cloud computing in the HR space is that it allows its users to access information wherever and whenever, provides greater flexibility, allows talent retention, collaboration and increases workforce insights along with allowing connectivity on various devices.
HCM is undoubtedly the most preferred cloud application compared to its peers such as ERP, SCM and CRM.
There are many reasons as to why HCM happens to be the #1 choice when organizations decide to embark on their cloud journey…Some of them are listed below
a) As the economy turned around in 2013, Talent acquisition and management along with operational excellence were seen as most important challenges for CEOs. This inference was based on the study conducted by The conference board, a global, independent business membership and research association. Surprisingly other areas such as innovation, customer relationships, brand management etccame later in CEOs priorities.
b) There is a huge room for automation in the HR space. Forbes indicate that while more than 450 million people around the world could license and use corporate HR software; only 55-60 million seats have been sold so far, hence leaving a huge opportunity space for automation in the human resource management area
c) Even the automations that have happened in the HR space over years have been predominantly home grown, archaic and needs improvement particularly in aesthetics and usability.
d) There are options available for Cloud HCM now than ever before. There are close to 100 leading organizations, worth their name, that provide part or whole suite of HCM solutions on cloud
Hence, not surprisingly, Cloud HCM applications market which was around over $5 billionin 2013 is expected to grow to $8.4B with compound annual growth rate of 11%, while its on-premise counterparts are likely see contraction of close to 13% during the same period.
Closer home, we are witnessing many organizations, small and big, choosing cloud based HCM solutions such as Ramco, Adrenaline, Success factors, Oracle Fusion/Taleo, Kenexa etc.
While it has been relatively easier, off late, to sell cloud HCM solutions; the same cannot be attributed when it comes to their implementations. Implementing a cloud HCM solution can be trickier if we are not prepared enough. We run a risk of hitting what I call a long tail syndrome – A never ending engagement to make the HCM work successfully.
I intend covering this as a 5 part series wherein I would highlight potential challenges one is likely to encounter while implementing a cloud HCM solution and what safeguards are required to tide over them.