Why should Indian CEOs choose HR shared services over buying HR tool?

While both HR shared services (HRSS) and HR tools have their advantages, there are several reasons why Indian CEOs may choose HRSS over buying an HR tool:

Comprehensive Solution: HRSS offers a comprehensive solution that encompasses not only the technology aspect but also the expertise and services of HR professionals. It goes beyond just providing software or tools by offering end-to-end HR support, including transactional HR tasks, compliance management, employee relations, talent acquisition, and more. This holistic approach ensures that all HR needs are met, rather than just focusing on specific functionalities provided by an HR tool.

Expertise and Support: HRSS providers typically have a team of HR professionals who possess extensive knowledge and experience in managing HR functions. By opting for HRSS, Indian CEOs can leverage the expertise of these professionals who can provide guidance, strategic advice, and support on various HR matters. This human touch and personalized assistance can be valuable, especially for SMEs that may not have a dedicated HR team or lack HR expertise in-house.

Scalability and Flexibility: HRSS offers scalability and flexibility that may not be readily available with an HR tool. As businesses grow or encounter fluctuations in their HR needs, HRSS providers can quickly adjust their services to accommodate those changes. This scalability ensures that HR support aligns with the organization’s evolving requirements, without the need for additional investments in software or tools.

Cost Considerations: While purchasing an HR tool may involve an upfront investment, it may also require ongoing costs for maintenance, updates, and integration with other systems. On the other hand, HRSS typically operates on a pay-per-use or subscription-based model, allowing organizations to control costs and avoid significant upfront investments. For Indian CEOs, especially those running SMEs with budget constraints, the cost-effectiveness of HRSS can be an attractive proposition.

Reduced Implementation Time: Implementing an HR tool often involves a significant amount of time and resources for customization, integration, training, and data migration. In contrast, HRSS providers have established processes and infrastructure in place, enabling quicker implementation and faster access to HR services. This agility can be beneficial for Indian CEOs who seek timely HR support without the complexities associated with implementing an HR tool.

It’s important to note that the decision between HRSS and purchasing an HR tool depends on the specific needs and circumstances of the organization. While an HR tool may be suitable for certain situations, HRSS offers a more comprehensive and service-oriented approach, making it an appealing choice for Indian CEOs who prioritize end-to-end HR support, expertise, scalability, flexibility, and cost-effectiveness.