Setting a vision to transform the human resource operations and achieving the same is not as easy as it may sound. A lot goes into the research, selection, purchase, and implementation of HR products. So, once you think you have landed on the right HR software for your company, don’t think that the whole job is done! As you move forward to select the right HR management software for your brand, it is vital to consider a few important factors such as:
- Whether to build the technology in-house or purchase from third party vendors
- Implement specialized solutions for specific functions from best-of-breed providers or choose end-to-end service providers/ integrated solutions
- Host the end product on premise or on the cloud
These critical points that simplify the decision-making while evaluating an enterprise HRMS software are a must to be taken into account.
Now, it is definitely a matter of concern whether the execution after all the auditing and assessment will be done smoothly or not.
Let’s discuss a few points in detail to understand which options are better and which one is not:
Build OR Buy?
First things first, deciding if it is better to invest money into the product from an outside vendor or to develop an in-house HR software is paramount. If you build a custom HR software, it would offer more control to customize and personalize the solution as per your own needs. It could give you a proprietary edge over your competitors, if built right. On the contrary, when you hire third-party software providers, the process becomes less expensive, easy to implement, and faster to go-live.
But, there are a few points that you should consider before choosing the way:
- Budget Parameters
If budget is a matter of concern for you, don’t think of building the HRMS software from scratch. It invites implementation, service, operation, maintenance, and other overhead costs. But, if money is not an issue, then developing the entire software after gathering requirements to suit the brand is the best option because hiring third-party may save charges but would require a lot of follow-up and hassle to meet the needs.
- Opportunity Cost
Organizing resources thoughtfully is one of the most important tasks as you start implementing and evaluating your HRMS software. While allocating resources for building a solution, imagine what could the additional resources be spent on? This is a vital decision as you can use the in-house talent to build the software and also make sure that they are not deprived of their core projects. In this way, there will be no hole burnt in the pocket.
- Time Horizon
Time becomes a constraint when you outsource the HR software. When the service providers are situated offshore, communicating the needs again and again becomes troublesome. So, either a third-party that stays in the same time horizon or building the HR software in-house so that there are no time boundations is the best way to go.
It is important to assess your in-house team’s capability to build a solution that meets your organizational requirements. The team must be able to address the immediate needs and should build a product that is scalable as the business grows. When you decide to go with off-the-shelf HRMS software, quality is already assured. On top of that, you get to see a demo of the final outcome of the product before implementing the same in your organization.
Cloud OR On-Premise?
The next question is whether you should host the end product on-premise or on the cloud. Let’s see the points to be considered in this case:
- Implementation Speed
There is no doubt about the fact that the cloud is a better solution than any other. On premise solutions need installation of hardware and systems before going live, whereas cloud solutions can be accessed faster. Third-party solutions offer access through applications and interfaces for quicker implementation. If time is a problem, cloud solutions are way better than on-premise as they can be customized and set-up extremely quickly.
- Data Confidentiality
In an on-premise solution, the data is safely secured within your own data warehouses. Using cloud solutions, third-party service providers manage the data. The latest and most advanced technologies can be adopted to address data privacy to meet compliance standards across industries.
- Adoption & Maintenance
Cloud HRMS solutions are more user-centric and intuitive, thereby minimizing time to train the professionals to increase adoptin rate. As a result, the integration with existing systems is simplified and becomes seamless to adapt. Whereas, on-premise solutions have frequent upgrades and maintenance, affecting the team’s productivity.
End-To-End OR Best of Breed?
End-to end is a full package with already integrated modules. On the other hand, best-of-breed offers specialized solutions for specific purposes.
So, it’s time to put on ypur thinking caps and evaluate both the paths properly to land on the conclusion that is just right for you.