Cloud HRMS adoption gains momentum in small and big businesses

Cloud has revolutionized enterprise IT at all levels. Whether it’s customer relationship management (CRM), payroll management, inventory, or anything like that, cloud can serve it all. One of the best applications of cloud is HR management.

Cloud based Human Resources Management Systems (Cloud HRMS) has revolutionized the HR process in big and small businesses, says a whitepaper from Tata Docomo.  Cloud gained significance as organizations looked to control cost and remain agile without compromising on automation.

Tata Docomo is a serious player in the enterprise segment, offering several business applications on cloud. The InstaHCM (Human Capital Management) is one such solution that offers a complete package from ‘Hire-to-Retire’ stages of an employee’s life cycle, according to Tata Docomo.

On-premise HRMS failed on many accounts. As businesses expanded rapidly, the HR process became more complex, so scalability of these systems became a major hurdle. Not surprisingly these systems required huge investment, which prevented many businesses from opting them.

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Cloud HRMS helps businesses overcome the challenges associated with typical workforce management and optimize success through secure and scalable business execution tools that help in aligning workforce, execute business strategies, identify high and low performers and increase business productivity.

Cloud HRMS performs all the functions that an on-premise HRMS can offer.  Since there is no on-premise hardware that needs to be installed, many small and medium businesses got attracted to it initially. Service providers succeeded in delivering SMB friendly models.

The needs of HR management do not vary much among small and large businesses, says Taata Docomo. Emerging businesses too had the same expectations of their employees and vice versa. Cloud has paved the way for an efficient HRMS solution for these businesses.

While Cloud HRMS offered a way to reduce capex and improve HR process, it also brings some unexpected concerns. Once Cloud HRMS is in place, it would mean that all the potentially sensitive information about employees is technically in someone else’s hands. The ability of the organization to overcome this concern depends on many factors.

In order to enjoy a secure cloud solution, organizations need to identify the right service provider. They should also use effective encryption and opt for close contract management with the SaaS provider.

Regulatory changes can also affect cloud deployments. Lack of efficient coordination between the HR team and the SaaS provider could result in communication problems. Since the service is managed by the SaaS provider, organization does not have control over the software or the data. In such scenarios, organizations should ensure that the underlying software and applications always run smoothly.

Despite these hurdles, the popularity of Cloud HRMS continues to rise. Cloud facilitates functions like employee self-service and Bring Your Own Device (BYOD) by making use of the dedicated portals in Cloud HRMS that can be customized based on the needs of the business.

Cloud services are highly customizable too. Right from size to solutions, Cloud HRMS offers it all. Like on-premise HRMS, Cloud HRMS too offers a gamut of solutions right from core HR, Workforce Management and Talent Management to Learning Management and Compensation Management. Another benefit of Cloud is that it can be upgraded seamlessly.

Citing a survey from a leading consulting firm, Tata Docomo says 59 percent of organizations already keep data in the Cloud or are planning to do so. By 2016, over 70 percent of organizations will be using some sort of Cloud system for human capital management.

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