Cloud computing is the next big disruptive technology that is increasingly getting popular within the HR fraternity. It is changing the way business operates by bringing transformation in the HR management processes.
“MPHRO is the traditional way in which HR was being managed. But now, 35% of the organizations have moved to cloud as of December 2015. This attributes to about 14 billion worth of market share and this is going to go up. In couple of years, 35% will be increased to 65%,” avers Alok Kumar from Excelity at the TechHR’16 conference.
Cloud computing can help ease out numerous functional areas. In HR particularly, it can contribute in back office operations such as benefits, time and attendance, pay roll and systems of records etc. It is impacting many industries including manufacturing and financial sector. There are lots of HR service providers present globally and at regionally. “We have lot more options today; than in the past. From provider and solutions perspective, some of the HR service providers at global level are – Accenture, IBM, Aeon etc. and regional ones include – Excelity, Ascender, NGA in Europe. You have a choice – what kind of model you want to work on or what kind of integration you want to create. But you don’t have a single solution that has everything. After Manufacturing, it is financial services that are the second largest adopter of HR outsources services. When cloud phenomena came along it was meant for serving small and midmarket segment. Today lots of large organizations have moved to workday. Financial sector is important part of it,” says Rajesh Ranjan, Everest Group at TechHR’16 conference.
Before moving to cloud, one needs to check organizational readiness. The organizations must know that Cloud solutions offer fewer configuration and customization options and they need to ensure that processes match the new changed applications. One needs to evaluate their organizational processes extensively. “We work with 450 clients, we produce about 1.2 million transactions every month and lots of these clients and organizations that we work with have already moved into cloud environment. Organizations have invested a lot in technology. Now they need to prioritize between finance and HR as they drive lot of administrative transactional functions. It is a myth that HR process can be changed overnight. Many organizations go through transitory phase. You need to have level of adoption. One needs to go through process of evaluation, implementation and rationalization. Don’t just miss these steps and move to clouds right away,” explains Alok Kumar, Excelity
Putting data on cloud enables you to access information from anywhere through multiple devices and channels. So, undoubtedly Cloud computing is the most scalable and less expensive option available.