The growing acceptance of the On-Demand (also known as Software as a Service or SaaS) delivery model as a standard for the HR industry may be related to a cardinally different way SaaS vendors respond to client feedback and ideas. In many ways, customer perception is that of working with a dedicated in-house development team. Recent report by the Info-Tech Group credit SaaS' superior customer service for 26% of HR buying decisions.
Business model based on alighting with client needs
A case in point, the ability to support applications offline was recognized recently as critical by the leading research firms and industry monitors such as Gartner, Inc for web-based services vendors to address. Clearly, clients with intermittent connectivity to the Internet or those who are on the move would have a hard time using products with Web-only functionality.
Since that need has been identified, over the course of just several months, a number of SaaS vendors announced their support for offline functionality in their applications. For instance, ThinkFree and SocialText provided the ability for collaborating teams to continue working with their applications even if connection to the Internet was interrupted. This was an important gain for the companies with the geographically dispersed teams and business units, as well as scores of telecommuting employees.
Similarly, SaaS.com recently made it possible to track workforce tasks and activities for employees on the move. This functionality was most relevant for staff members who conduct extensive amount of business travel, work away from the office, and need to have the ability to clock in specific jobs and projects on the go.
These is just one instance where SaaS vendors were able to align their business solutions with their clients' needs and do it in a way that instantly benefits the entire client base.
How is it possible?
On-demand software delivery models, where clients often have the flexibility to control the span of the relationship, have SaaS vendors on their toes as they are expected to deliver value through the life of the account not just deliver a sale.
This is in contrast with the traditional client-installed services where clients are often left on their own once the sales process is completed. What's more, with installed solutions clients frequently have to make do with whatever features come available with the product and can either forget about any customization or are presented with a weighty bill for any enhancements.
What about the in-house services?
A company's internal IT resources are generally expected to be dedicated to meeting the company's strategic needs. That leaves little room to address the specific needs within the Human Resource organization managed HR-facing applications. Thus, poor goal alignment within separate departments within the company can lead to tension between IT and HR departments and can reduce efficiency.
This is where on-demand vendors can step in for Human Resource organizations and help to provide them with the needed resources. HR departments can expect high levels of dedication and responsiveness from the third party provider whose core competency are those specific services. Meanwhile in-house IT teams are able to focus fully on meeting the company's strategic objectives. Every party wins in this relationship.
Continued enhancements meet unanticipated needs
New services delivered for one specific customer can be offered to and enjoyed by the rest of the customer base and can make client companies more successful overall. For example, if one client company requests and gets a new report type or a enhanced timesheet format, other companies can find this both beneficial for their own business instantly. In this sense, a service provider becomes a partner looking out for the benefit of the user organization, or better yet, an invisible part of an internal IT department that is wholly dedicated to the HR organization.
What it means to the long-term outlook?
Human Resources market has been recognized as one of the fastest growing SaaS-supported segments because of the benefits it brings to every participant involved.
KnowledgeSum.com is a leading provider of web-based labor management and employee scheduling services. Our communications group enjoys sharing the information about the latest online technologies.
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