HCM OUTSOURCING TRENDS

Currently more and more companies are looking to outsource non-core business processes as part of their strategic approach, when structures, efficiencies and effectiveness of their business outsourcing can drive the overall business transformation. Depending on the nature and extent of its application, outsourcing can lower a company’s costs by 10% to 70%.

The benefits:

• Lower costs: achieve more with less. Reducing transition, evolution and ongoing total process expenses. This also enables an organization to lower the cost of keeping long term options open.
• Better risk management: improve risk management by reducing transition, operational, strategic and legal risks from initial transition all the way through to contract conclusion.
• Improved process quality: improve the quality of processes and services during transformation, throughout operations and after contract conclusion.
• HR to become more strategic: Improve the quality of information to better manage the human assets of the organization.

HCM Spectrum – The HCM Solution as a Service

For the most cost-effective way of accessing world-class best practices in Human Capital Management

No matter what size your organization is, managing your workforce is a largely administrative task that demands accuracy and relies on up-to-date information about your employees. SAP Human Capital Management has been recognized as a world class solution that provides an integrated approach that allows for the forecasting, planning and hiring of the best talent and cultivating these skills by managing this talent.

However, the cost of world-class systems often prevented many organizations from exploiting these capabilities. Costs are not only limited to purchasing the solution, but also extends to the implementation, management, hosting and maintenance. Due to the complexity of the solution, it is necessary to employ specialists to do the implementation as well as the maintenance and the subsequent support. Often implementations will take a full year before any benefits are realized, compounding this problem.

Providing the SAP HCM Solution as a Service allows organizations to access SAP HCM without making any upfront investment

These problems may be a concern to larger organizations, but becomes prohibitive for medium to small organizations who in the past could simply not justify the investment. Providing the SAP HCM Solution as a Service however allows organizations to access SAP HCM without making any upfront investment and only paying for what they use when they use it. This flexibility allows your HCM Solution to grow and fluctuate in line with your workforce.

Only pay for what you use when you use it

Making a business case for HCM Spectrum as a Service not only relies on cost, but also reduces risk since the Solution is fully certified by SAP. The solution also provides a quick-win for realizing benefits after only 12 weeks, because implementation time is reduced significantly due to a template approach.

Reduce Risk

In some cases, organizations may have invested in SAP, but they are unable to expand the solution to include services such as Employee and Manager Self-Service due to the additional license and hardware requirements. HCM Solution as a Service provides the flexibility for organizations to make use of the parts of the solution that they need. They can thus maintain their own SAP system in-house, but still benefit from using Self Services on a ‘as-needed’ bases.

Realize benefits after only 12 weeks