Last year, the Laurel Group compiled opinions and forecasting from an impressive group of thought leaders in the SaaS industry. The market drivers that these software experts identified are still holding strong in 2010, so it’s a good time to revisit this topic and see how SaaS continues to become a more and more attractive option for HR in general and onboarding in particular.

The Laurel Group’s paper points to 3 factors that are motivating business owners to turn to SaaS.

Emphasis on Low Cost/Low Risk Options

At the top of the list is the economic picture. Companies are seeking lower upfront costs that minimize their risk and preserve capital in an uncertain financial climate. However, they still need to implement new technology to streamline business processes and lower costs throughout their organization. So, they can’t afford to stay with the status quo. With HR acting as an enormous cost center, onboarding is an obvious choice for a “makeover”. It can be addressed as a niche process or as part of a larger human capital management initiative. Realizing an immediate return on investment makes onboarding automation a smart move for HR directors who want to be seen as strategic partners in their organization.

Better Utilization of IT Personnel

The second factor driving SaaS adoption is that business owners want to make better use of their IT resources. Maintaining and updating legacy systems makes less sense as more SOA and cloud computing options become available. The SaaS approach to delivering onboarding offers IT a way to reduce their labor investment in creating a bespoke application or keeping existing software current and fully operational. As it becomes necessary to handle a rapidly evolving field of software applications, outsourcing data and application management to SaaS vendors is an attractive alternative to hiring additional IT personnel. Because onboarding is an HR process with legal ramifications that a typical IT department may not fully understand, organizations can reduce their non-compliance risk by selecting a niche vendor to provide a solution.

Consumer Driven Technology

The final factor addressed in the Laurel Group’s paper is consumerization. Now, even the most traditional companies are “getting on board” with secure mobile applications. This level of comfort with using software that is delivered over the web is only going to increase with time. For onboarding, this additional mobility operates in perfect tandem with the developing trend toward e-commuting and other remote work options.

To find out how Universal Onboarding fits into the HR SaaS picture, click here.

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