Top most factor: The Budget

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.

Navigating through Technology options for your Business Architecture - Intro

It is mind boggling to see the number of options out there today for HR Systems (and for that matter technologies for any business process). First of all, there are choices between SaaS (Software as a Service), Utility based outsourcing and the on-premise models; and then there are niche products, end to end HR systems, web based ones, self service portals - the list goes on.

Through these blogs I will try to simplify the process of selecting the right system for your business.

Choosing the right technology for your business depends on a number of factors:

1. Who will be the users of the technology?

2. How will they be using it?

3. Where do they need to access the technology from?

4. Who has approvals and decision making controls in the process?

5. The culture of your organization

6. How often do org structure and process steps change?

7. What are the data sources for the business process?

This blog will take a closer look at some of these factors and explain how they impact your technology decision.

CompareHRIS.com (http://www.comparehris.com), one of the latest and smart websites offering services in HR IS systems, has taken one of the most practical approaches towards helping customers choose the right HR system. Not only do they have descriptions and demos of 20+ products, they also guide the customer through a 10-min interview that determines the natire of the company and the requirements of the HR system. There is no one size fits all. Different technologies will be appropriate for organizations at different points in time.

Through this blog, let us look at some such factors and what they truly mean to your business and technology.