Why SaaS HR Software Is Ready to Take Off

CIO

...Jason Averbook, chief business innovation officer at cloud services provider Appirio, says the HR application sector is in the midst of a replacement cycle. Averbrook was previously CEO at Knowledge Infusion, a human capital management consultancy Appirio acquired last year.

Up to 90 percent of the Fortune 1000 will replace or re-implement its core HR system in the next four years," he says. "Most of the software that's out there was written before the Internet was born. It doesn't meet the needs and expectations of employees and managers. That's why you see so much activity around the cloud."

CIOs opting for human resources in the cloud have a number of choices from companies that grew up in the cloud or have moved to SaaS delivery following a history on on-premises products. Vendors offering human resources management applications in SaaS form include ADP, Ceridian, Kronos, Oracle, SAP and Workday.

Averbook says a pending on-premises upgrade of a legacy human resources system can trigger a move to SaaS. Many aging in-house systems have been customized beyond recognition and require a ton of internal support to keep them running, he points out. "CIOs want to get out of the business of maintaining back office systems. When the time to upgrade comes, it's natural to look elsewhere."...

Read more