Considerations for Moving to Cloud-based Human Capital Management


The last few years have seen a number of enterprises move closer to adopting a cloud-based human capital management (HCM) solution. Based on a recent ISG study, the number of companies planning to adopt HCM software-as-a-service (SaaS) technology in 2020 is twice the number from just two years ago. While the stories about the benefits of moving to cloud HCM are enticing and the move seems straightforward, the journey to the target state can be challenging. The move from an on-premises application to a cloud-based application is much more than a mere system change. The earlier organizations realize this, the greater the odds for a successful transition.

A HR transformation affects various service delivery components, including the following: 1) organizational structure and governance, 2) roles and responsibilities, 3) skills and capabilities, 4) organizational change management, 5) functional processes, 6) service levels and metrics, 7) technology, 8) employee experience, 9) sources, alliances and third parties. Taking time to plan carefully for how a move to HCM SaaS will affect each of these components will increase the benefits. We recommend setting up of a transformation management office to best direct and manage the effort.

This ISG white paper Considerations for Moving to Cloud-based Human Capital Management examines each of these components in the context of moving from an on-premises model to an HR SaaS solution and explore how to take advantage of the opportunities and avoid the pitfalls.

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About the author

Anoop Chawla is a Principal Consultant with 20 years of progressive experience specializing in all facets of human capital management (HCM). His expertise spans HCM large program management and solutioning in HCM SaaS and HCM shared services arenas. He has helped clients define and implement HR shared services models to suit their specific need and has led large multi-million programs to rollout HCM technology and set-up global shared services centers.