|Mr. Balaji Ganesh|
CEO and MD
Mr. Balaji Ganesh, CEO & MD of Adrenalin eSystems Limited talks about changing trends at workplace and the corresponding adaptations of Cloud for HRMS. He starts with Smart Technology’s role in today’s work environment and goes on to detail the benefits, security aspects and the role of HR in this transition.
Cloud Technology has experienced favorable adoption not only by large enterprises but increasingly by many SMEs too. Still there exists uncertainty about Data security, posting sensitive employee data with third party service provider, etc. in the minds of HR. The objective of this article is to assist HR to unravel the myths surrounding Cloud and simplify their understanding for better adoption. It is important for HR to ask the right questions to the Service Provider before embracing Cloud solution.
HR should not fear adoption of Cloud services due to lack of understanding. According to Mr Balaji Ganesh, CEO and MD of Adrenalin eSystems Limited, "The fact that it is a shared service does not make Cloud for HR less-favorable“. In order to convince the HR industry to adopt Cloud, the argument can be made that most companies already outsource payroll to other vendors, which strikes similarity to what data in Cloud implies too. The same process of validation of the payroll vendor in terms of reliability & security, should apply to the cloud service provider as well.
Security is a major mental block for many companies who are considering Cloud since sensitive data is to be made available in an external environment. "One of the many options to ensure security and privacy of data is to go with trustworthy, long-standing, credible Application and Service partners. A service provider need not be an application provider too but could be the same," added Mr. Balaji Ganesh. Both parties should considering signing a NDA (non-disclosure agreement) and have necessary contractual obligations set up among themselves in terms of service availability, access rights, disaster plans, etc. Data that are externally hosted can also be encrypted and periodic (say quarterly) access audits conducted. The company can also ensure that user privileges are exclusive to their company employees and only specific users are empowered.
Cloud based HRMS is also a very cost-effective solution since only a subscription fee (pay per use - per employee per month or per employee per year) needs to be paid. Many make the mistake of trying to compare the cost of on-premise solution with that of cloud solution directly. On-premise solution has many additional components of cost like infrastructure, hardware, software, maintenance, support structure, etc., in addition to cost of downtime during migration to new version/update. These are non-existent in case of Cloud and makes it simpler and easily adaptable.
Cloud can be successfully implemented in a company comprising of as small as 20 employees, as the infrastructure cost is non-existent. HRMS (Human Resource management systems) on Cloud can be implemented very fast because there is no infrastructure, hardware or software installation, database configuration and application setups.
In today’s context integration with other applications or devices and/or customization are also possible in Cloud. Depending on the organizational requirements customers can customize their needs, carryout enhancements and integrate with other systems as well.
Where there are major customization involvement, companies can opt for private Cloud instead of using a public Cloud.
Integration or interfaces with other 3rd party applications which are in-house or on-Cloud is also possible. Support and maintenance is also a lot easier on Cloud both from the application and infrastructure perspective. Anti-virus and patches updates, etc. are done by the service provider as part of the contract.
The service provider can also expand the hardware resources on the Cloud as it detects changes in the volume of transactions – for instance when the number of transactions goes up during an organization’s appraisal. This flexible scalability and consistency functionality of Cloud environment may be absent in the case of in-house solutions, where the company has to add the resources needed to support the increased data volume.
Even disaster recovery is handled by the application or service provider whether it involves backups, disaster handling mechanism or even a location shift; everything is taken care of by the Cloud vendor.
"With lower cost, no capital expenditure & faster implementation, Cloud for HR is an attractive proposition for many companies," said Mr. Balaji Ganesh, CEO & MD of Adrenalin.