Study: HR tech not guaranteed with cloud services for HR software

According to a recently released report by Information Services Group, about half of the organisations that use subscription cloud services for HR software can achieve cost savings of up to 30 percent. The company’s 2019 Industry Trends in HR Technology and Service Delivery report explores the state of HR technology and services today and provides guidance to address some of the challenges and opportunities organisations face as they move through the phases of HR tech capability toward digital transformation. It finds, among other things, that moving to cloud-based HR software that relies on software-as-a-service (SaaS) often costs more than anticipated.

When asked about the ability to translate SaaS technology to measurable business value (such as increased retention, reduced time to fill or other business-value measures), 41 percent of survey respondents say they have achieved measurable business value by adopting SaaS, while 59 percent say they have not.

That said, more than 60 percent of companies cited significant savings in the areas of IT/technology operations and HR administration after implementing them. It also found that companies moving to cloud-based HR software that relies on SaaS are driving the move away from licensed software, which nearly three-quarters of respondents used as of 2018.