The first decision factor that usually pops up is the budget and rightly so. Most organizations shop for solutions within their budget. These solutions can range from in-house solutions to complete outsourcing.
What usually gets missed out while reviewing the costs of these products is the TCO or the Total Cost of Ownership. The total cost of ownership should include,
* Cost of acquiring the solution
* Cost of maintaining the solution
* Cost of operations
* Cost of additional process steps / solutions required to complete the process scope
* Cost of infrastructure required to support the solution
* Cost of training the users on the new solution
* Any third party costs
From this perspective it makes sense to view the total cost of the end to end HR process, rather than focusing on the solution that you are considering. Looking at the end to end process will give a better estimate of all the costs involved.
Vendor prices might promise "value added services" which sound good. But remember that you will get the value only when you use that particular feature or facility. So again have a clear picture of the end to end process to determine which product / solution covers most of your needs and how much more you will have to do to complete the process. Ask questions and ask for data sheets, system architecture, support options and all that you need to get a clear picture.
This information can be derived very easily and most of the vendors who are showcasing their solutions to you will be willing to do this analysis for you at a low cost or even for free. However if you want an unbiased view, you can engage a consultant (like Optimus Prime HR) to pull this together for you.
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