HR and the Cloud

Tom Starner

Chris Nuttall, expert in shared services and outsourcing at PA Consulting Group, is quoted in Human Resources Executive discussing how Software-as-a-Service and cloud computing can help human resources. These technologies are already changing the way HR operates and can help HR organisations of any size compete and operate on a global scale.  

Here is an excerpt from the story "HR and the Cloud" where Chris is quoted:

Chris Nuttall, in the New York office of PA Consulting Group, says many aspects of an employer's HR processes can now be delivered using SaaS applications, including recruitment, administration, employee-relationship management, communication, learning and development, etc.

"However the main challenge in adopting SaaS and making it a reality is not a technology challenge - it is a management challenge," he says. "There are several key factors for success."

First, Nuttall says, HR organisations need to clearly establish their requirements for SaaS and the business case for change.

Cost savings are typically only one component of this. Only then should the organisation adopt a customer-focused, performance-based contract for SaaS services that provide best-value services and strong oversight of the risks inherent in a cloud solution (e.g., security, privacy), he says.

Second, HR organisations should adopt a multi-sourcing strategy for SaaS services that integrates with wider HR and business processes, as well as aligning with the enterprise cloud strategy and the enterprise HR-shared-services and outsourcing strategy (assuming there is one).

"With cloud solutions," he adds, "it is essential that you take a big-picture view."

Finally, Nuttall says, the HR organisation needs to build new governance and oversight capability to manage SaaS-delivered services.

"SaaS will increasingly be a key component of the future HR operating model for organisations of all sizes, but the transition to SaaS needs to be carefully managed in order to ensure the promised benefits are delivered," he says.

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