Sunday, March 10, 2013

Moving Talent Management To The Cloud Can Reduce Cost By 47%

At HR Insider 2013, SAP SuccessFactors Hybrid customer, Coca Cola Enterprises hosted a customer discussion. The key take away for me from the session was a fact shared by one customer. They said that they compared the costs of implementing and maintaining an OnPremise talent management system with a cloud based talent management system and found out that they can save 47% by simply going with the cloud version. This was a small implementation for about 500 people.

I have also heard from large customers with over 300,000 employees that their projected cost savings was about $60 Million over three years. I did not get a percentage from them. But I guess it might be close to 50% in cost savings compared to an OnPremise implementation. Such cost savings combined with innovation and agility are key reasons why I believe most organizations will move their talent management applications to the cloud.

For thousands of organizations the HCM picture will look a bit like this.

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