Most enterprise applications now offer cloud options and, in many cases, companies are taking advantage of them for the purposes of IT cost optimization and ease of management. While enterprises have been cautious in adoption of cloud ERP, NPI has noticed more companies embracing a SaaS model for human capital management (HCM) needs – an important ERP function.
Because of the employee-centric nature of the various modules (including performance management, career development, absence management and e-learning), HCM lends itself well to a SaaS model.
As you consider your supplier options, keep the following ideas in mind:
- Some providers assemble end-to-end HCM solutions from multiple sources, including co-branding or rebranding another provider's offering. Be sure to investigate this and be comfortable with your primary provider’s capabilities to provide support. Also, be sure they can speak to any risks in their technology partnership from a customer's perspective.
- We are seeing cases where HCM providers are growing their sales team faster than their support team. Direct questions about this as well as reference calls that drill into the customer support experience are important pre-purchase activities.
- Most customers don't think customizations are as big of a concern with a multi-tenant SaaS model. Think again. There’s a good chance your implementation will require customizations. Furthermore, SaaS providers typically have multiple releases each year. Be sure your unique implementation takes this into consideration from a cost and people perspective.