I tell the HR and HR-IT audience that their CIO and CFO are going to demand that they move to the cloud for HCM, particularly for talent management applications because of the incredible cost savings they can get. This is going to happen sooner than we think. Here is one very public data point from Flextronics. The company standardized on cloud globally for HCM and, along with other shifts, saved $100 million in three years.
Since Flextronics employee count is public, it might be possible for most organizations to get a rough idea about how much money they can save by moving HCM to the cloud. It may not be 100% accurate. But the projected savings will be compelling enough for any CIO or CFO to give it a try.
Unlike the cost savings the BPO providers promised a few years back, the cost savings promised by cloud HCM providers is real and proven by HCM cloud software providers. I met many customers and software providers this year and asked them about their plans and level of comfort with the cloud. Based on those conversations and some savings projections that i was privy to, I believe that the movement of HCM, particularly talent management, to the cloud is going to happen sooner that we think.