Russian HRM SaaS Market

Prospects

In Russia, the introduction of SAAS technologies is associated with additional difficulties, since uninterrupted Internet access in many remote regions of the country is not always possible. This becomes an additional obstacle for large companies with a large number of branches in different regions of Russia.

Nevertheless, experts interviewed by TAdviser are confident that in the future the demand for such services and, as a result, supply will grow. At least for a long time, demand will grow at the expense of small businesses. Most likely, in 5 years it is possible to increase interest from the middle business.

"Big business, if it shows more or less serious interest in SAAS, then very soon. The fact is that in our country even outsourcing of services for payroll and personnel accounting did not go. First of all, as I believe, due to the fact that mutual trust has been undermined in Russia. No matter what confidentiality guarantees outsourcers give, there is no faith in them. Accordingly, large enterprises prefer to keep such information on their servers, without sparing the costs of maintenance personnel, "said Igor Yakobson, chief expert at Compass

. The practice of providing services for the remote use of software products in Russia is still rare, according to Norbiti.

"The network infrastructure for the wide distribution of such a service is clearly insufficient, because a number of technical conditions are needed to maintain it, which can be fully provided only in the central cities of Russia," said Victoria Alexandrova, head of the Norbit personnel department.

Advantages and disadvantages

But, while cloud technology is not without flaws, it remains a fairly attractive and promising proposition, primarily because it significantly reduces human resources costs. Small companies, small businesses, which are not suitable for the classic solution due to the high cost of its implementation and maintenance - these are potential consumers of cloud HRM systems.

The advantages and disadvantages of the classic HRM solution compared to the cloud analogue must be considered, first of all, from the point of view of the service delivery technology itself, experts are sure. The speed of access to data from the cloud depends on the stability of the dedicated Internet channel and the data center on which the system is physically located.

"These are risks that not everyone is ready to take now. In addition, when you place an HRM module in the cloud, an additional problem may be the need to integrate with an enterprise account that is traditionally hosted on an enterprise server that needs access to personnel directories. Among the advantages of the cloud are the lack of the need to support the associated infrastructure and costs for maintenance personnel, obtaining quick access to a wide range of functionality and minimum time costs for implementation, "said Vladimir Gvozdkov, Deputy Executive Director of Energy Consulting

.

Available Solutions

The potential demand for HRM SaaS encourages Russian vendors to bring relevant offers to the market, but so far there are not many of them.

Back in 2008, the company IT launched an online system rental service. Human Resources Management Boss-Personnel(IT - is the parent company in relation to the developer Boss-Personnel - companies). BOSS. Human resources systems The company offers the BOSS-Personnel EXPRESS solution. Its functionality allows you to ensure personnel management in accordance with the personnel policy of the organization. The cost of a cloud solution for companies will be from 7 to 10 thousand rubles. per month. The functionality is as close as possible to the full version without exemptions of functionality or other user restrictions, including payroll and tax calculation, reporting to the Pension Fund, selection, training and development of personnel and others.

The Simple Business CRM System HR solution enables you to partially implement the functionality of a full-fledged HRM system in the cloud. The product includes e-time management and the ability to set different levels of access and share knowledge and experience. The system provides quick access to frequently used materials, such as contract templates, job descriptions, and quotations, which greatly speed up and simplify the training process for new employees.

It is also worth mentioning "Bitrix: Corporate Portal" - a cloud system for working with personnel from Bitrix. This is a solution for creating a corporate portal (internal site), which can host news, file storage, working groups, calendars, forums, blogs, a social network with profiles, a messenger, and the ability to conduct training courses.

Norbit is currently working on creating its own cloud ERP solution. It will be based on the Microsoft Dynamics AX platform and, among other things, provide access to a full HRM module. The exact lines of the system's entry into the market are not yet voiced. Yuri Sychev, Business Development Director of Microsoft Dynamics AX at Norbit says the release of the cloud version of the system was announced with the next release of Microsoft Dynamics AX R3.

"We certainly plan to include this option in our proposal as a possible alternative approach, but currently the demand for the classic on-premise product seems higher to us," he added.

Compass also has a cloud HRM system under development. According to Igor Yakobson, from existing solutions on the market, the system being developed will be more flexible, including in relation to the use of existing labor legislation. In the future, it is planned to automate a large part of the functions of piecemeal remuneration and accounting for its results.

Many Russian customers, who still decided to put personnel management in the cloud, turn to foreign companies. Almost all experts interviewed by TAdviser among the market leaders call SAAS the UCMS WorkForce (Quinyx) decision from the UCMS Group (USIEMES Group). The clients of UCMS Group are mainly Russian representative offices of large foreign companies: Ehrmann (Ehrmann), LOreal, Legrand, Michelin and so on.

It can be said that today in Russia SAAS HRM still remains rare, and the demand for such solutions will grow along with the development of cloud technologies in general, improving the quality of Internet access in the regions, as well as increasing the loyalty of Russian companies to outsourcing services.

See also

HRM

Cloud-based HRM systems