Outsourcing

6 factors driving ‘Cloudsourcing’

Cloud computing and Cloudsourcing

In recent years innovation HR has accelerated through the availability of solutions such as HR outsourcing and cloud-based HR technologies. ‘Cloudsourcing’, the combination of HR outsourcing and cloud technology, will accelerate this HR evolution further still.

HR outsourcing has enabled the streamlining and standardizing of HR processes. The advent of cloud solutions, such as SaaS (Software as a Service) and BPaaS (Business Process as a Service), has brought even greater opportunities. Benefits of these innovations include; continual innovation, shared infrastructure and unified global technology platforms.

Thanks to a variety of cloud-based solutions and services, HR can quickly respond to increased global expansion and complexity. HR can be managed in a more flexible and cost-efficient way.

The evolution of technology in HR is still underway and the end is not there yet. ‘Cloudsourcing’ combines the above two trends – providing HR outsourcing services using cloud technology – and herewith provides an answer to the current technological and economic developments and challenges.

Thanks to ‘Cloudsourcing’, HR can evolve from being transaction based to being more strategic. By doing so it creates value for its stakeholders: senior management, business partners and employees.

NGA distinguishes 6 major technological and economic challenges tackled by ‘Cloudsourcing’:

1. The consumerization of technology

Not that long ago, IT departments were in sole control of technology. The rise of cloud technology has drastically changed this. Anyone can use cloud-based services to search for, manage and share information. This has completely changed the way we live, work and connect with others. Consequently, we expect greater speed, accessibility and accuracy at work.

Organizations have to evolve with this trend. Cloud-based technologies and services are essential to make this happen. IT is no longer the only ‘owner’ of technology within companies. Business units (HR, marketing, finance) also play a part in deciding in technology selection.

2. HR goes Digital

The current generation of digitally savvy employees expect and demand direct access to HR services. Digital enables employees to be active participants in managing their own careers. That way, they can access and amend their own personnel data.

HR must be a strategic partner for both management and employees. By doing so, they create added value for the organization by managing globally compliant and transparent HR processes.

3. Economic uncertainty

Due to economic uncertainty caused by events such as Brexit, organizations face intensifying pressure to justify expenses. Technology and HR expenditure are naturally under the microscope too.

HR outsourcing through cloud-based platforms reduces some acquisition and deployment costs. It provides organizations with the necessary flexibility to adapt to changing business conditions.

4. Continued Globalization

An increasing number of companies employ people in different countries and continents. As a result they need a global oversight over their workforce for compliance and/or performance reasons.

Thanks to global cloud-based solutions, employees around the world are interconnected and can rely on the same support using the same technology platform. The combination of technology and HR outsourcing services means employers can ensure compliance and globally uniform process support.

5. A shrinking workforce

As more and more of the world’s population ages, organizations can find themselves with critical skill gaps. Although HR may set the strategy and manage the processes, talent management is a shared responsibility.  HR, managers, business partners and the employees themselves all play a part.

The combination of cloud-based technology platforms and outsourced HR processes enables talent management across different regions, laws, cultures and languages.

6. The rise of analytics and data

In these economically challenging times, correctly interpreting HR data is essential. HR needs robust solutions and fact-based decisions due to increased complexity.

Access to HR data and the ability to integrate is vital in order to make use of the data. HR reports and analytics are important tools that rely on getting good people data. This is in addition to putting these reports in the hands of HR, managers and employees.

The availability of a uniform, global HR solution is therefore a strategic imperative. Additionally, a global HR service delivery network ensures maximum efficiency.

‘Cloudsourcing’

Cloud-based technologies easily meet organizational requirements such as flexibility, accuracy, compliance, usability, cost effectiveness and global reach. Moreover, ‘Cloudsourcing’ offers significant advantages such as standardized HR processes, greater mobility, time savings, and improved quality and integration of employee data.

Moving to cloud-based HR service solutions doesn’t have to be difficult. It can be done through a staged approach, this is so that previous investment is not wasted. Cloud-based solutions can be combined with on-premise technology through hybrid HR models.

Moreover, the right partner will not only guide organizations in choosing the right solutions, but will also implement them in a streamlined way. Therefore, HR can transform itself into the strategic leader that 21st century organizations demand.

July 12, 2016