Cloud-Based Workforce Management Systems Have Become the Norm

While on-premise human capital management (HCM) solutions remain in use, eventually all solutions will be cloud-based.

• While 70% of organizations have already deployed at least one cloud-based HR application, 40% continue to use at least one on-premise solution, according to research conducted by Sierra-Cedar.
• Many software vendors have “retired” their on-premise solutions, with all development, sales and support efforts focused on their cloud-based solutions.
• An increasing number of “major players”, including Google and Microsoft, have new entrants into the cloud marketplace, further accelerating adoption.
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An analysis conducted by Mercer Consulting highlight the primary reasons for this shift:

• Economics. On-premise solutions require a large upfront sum to purchase and implement the system, smaller annual maintenance costs, and separate upgrade fees.  Conversely, cloud-based systems are typically priced per user or per transaction per month.
• Analytics. Cloud-based applications include enhancements such as artificial intelligence and chatbots, pulling data from multiple sources to provide a 360-degree view of performance.  In addition, these applications offer sophisticated reporting capabilities.