Software as a Service and cloud-based integration: Assessing the business impact in multi-country payroll

While Software as a Service (SaaS) is firmly established as an outsourcing model in HR and other business sectors, its impact on the multi-country payroll arena has been less widely recognized. But this is starting to change. SaaS delivery models offer a number of potential business benefits for international payroll – albeit with some inevitable caveats.

This Briefing Paper – written for senior HR, Payroll and Finance professionals - begins by examining the evolution of SaaS in multi-country payroll, explaining the business implications of different approaches and exploring both the potential benefits and concerns. It then examines the potential impact of newer, cloud-based integration techniques on companies? global strategies. In particular, it argues that:

  • Cloud-based integration may reduce the cost of conventional integration, making it easier for companies to link together new and existing software systems and outsourced services
  • Potentially, it gives organizations greater flexibility in the way they approach their international payroll operations. Given that the ultimate goal of signing up a single global payroll provider remains beyond the reach of many large companies today, cloud-based integration potentially makes it easier for companies to take a pragmatic „mix-andmatch? approach and work with a small number of different providers
  • Improved integration should also enable organizations to achieve greater visibility into their international operations, one of the core business goals of multi-country payroll. In addition to a real-time view of operational data - what data has been uploaded, who?s been paid etc – improved integration techniques can provide senior managers with a consolidated analytical view into their payroll set-up
  • The impact of these integration techniques extends beyond payroll processing to payroll preparation (build-to-gross) and across the HR environment
  • It's important to note that cloud-based integration techniques are relatively unproven in the multi-country payroll field. The experiences of early adopters – including organizations such as Fairchild Semiconductor, featured in section 2.5 – will be significant going forward

To read the full report, click here or follow the relevant link on the left (GPRN membership required)


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