Key directions of development of HRM systems

Use of the SaaS model for HRM systems

Use of the corporate software on SaaS technology is very popular around the world. According to researches of analytical company Forrester, CRM- and HRM- systems are the most popular SaaS products. According to forecasts of analysts Gartner, in the current year the volume of the world market of SaaS products, will reach $19.3 billion.

The market of the USA is the most advanced and technological in this sphere. As show researches, the number of the companies using systems on personnel management according to the SaaS model in the USA grows promptly. Solutions on a business model of SaaS are most demanded among the companies with number of staff to 1000 people and also among the geographically distributed or international companies wishing to carry out consolidation of business processes. The SaaS model is especially relevant in the conditions of an economic crisis when most the companies emphasize importance of metrics of TCO(Total Cost of Ownership)/ROI(Return On Investment), including these indicators with one of the major factors when choosing a HRM system.

The Russian SaaS market is in a formation stage. However in the last 2-3 years the movement towards more active use of SaaS technologies - the idea of gaining access to the software on lease to become more and more demanded among consumers of IT solutions is observed. It is explained by flexibility, simplicity of adaptation and rather low cost of use of similar solutions. The main services best-selling at consumers, it is email clients and the CRM system. However the popularity of SaaS steadily grows.

What benefits can the consumer receive from use of a HRM system according to the SaaS model in comparison with use by the traditional HRM system provided on license model?

First, the difference between total costs on SaaS service and total cost of ownership own system is very essential. Lease of a HRM system is 2-2.5 times cheaper, than normal implementation. TCO at the same time does not include capital costs of implementation of a HRM system (purchase of licenses and the equipment, implementation, search of personnel), and consists of annual costs on software updating, depreciation charges on the IT equipment and costs for IT specialists. These costs - the salary, a compensation packet, taxes, lease of the office space, utility payments and protection counting on one specialist - are the main part of the hidden costs. Thus, SaaS model guarantees notable benefit on such key indicators as total cost of ownership and return of investments.

Secondly, it is very much system deployment deadlines. Unlike traditional, time of implementation of SaaS - the focused systems can be from 1-2 weeks to several months depending on complexity of the project. The project on lease of HRM systems includes большýю a share of consulting and preliminary preparation of business processes of the customer, and actually project works are a setup and small customization of the application.

Thirdly, updates of a system (for example, loading in the system of the unified forms in case of change of the Russian legislation, adding of new functionality), the help during the work with a system is performed by forces of provider within the rent.

Fourthly, Web focus of a HRM system opens for employees and management of the company absolutely new level of mobility with the accessibility to personnel and settlement information in any place, from any computer or the smartphone connected to the Internet.

Fifthly, in case of providing access to SaaS system, the company can be sure of safety of data and reliability of channels on which data are transferred. All responsibility connected with security and reliability of a system, the company provider undertakes. At SaaS provider much more opportunities to ensure safety and fault tolerance of a system as it is on a centralized basis placed in a large data processing center.

And, at last, the risks connected with personnel decrease: for example, the IT specialists who are engaged in support of the system purchased on license model can leave. The lack of these risks is one of advantages of transition to the SaaS model.

However, despite demand of the HRM-systems working according to the SaaS model in their Russian market it is a little so far. Among systems presented at the market, solution SaaS only the companies UCMS Group Quinyx WorkForce (system), StepStone (systems ETWeb Enterprise and StepStone e-Recruitment (i-Grasp)) have and BOSS. Personnel systems Boss-personnel officer (system). At the same time real implementations of SaaS systems in the Russian market are known only for the solution Quinyx WorkForce.

Perhaps, it is connected with the fact that potential consumers underestimate all benefits from use of solutions SaaS so far. However specialists of this market and the first consumers consider that all this is temporary and demand will grow.