“The move from traditional HR software – on-premises software – to cloud-based systems has been accelerating globally for more than five years,” Oracle senior director of HCM strategy and transformation, Yazad Dalal, told
HRD.
This increased adoption is pushed by the technology’s added convenience and the proliferation of the mobile sector worldwide.
For HR, cloud computing is sweeping through businesses from large enterprises to smaller start-ups with programs handling everything from payroll services to employee engagement.
“If you look at the total number of employers around the world, there are now thousands who are interacting with a cloud-based HR system,” Dalal said. “Research shows that equates to over 150 million employees.”
With the increased use of cloud technology, employees will start to demand better quality, more consumerised technology from their employers, Dalal added. It is therefore important for HR to understand this new technology and how it can spark change within the organisation.
“From an HR leader perspective, they will feel increasing pressure to become agents of change and drive adoption to meet the needs of their employees,” Dalal said.
“There is something inexorable about technology – it is always going to continue to evolve – and we can’t just pause that if you are an HR director or CHRO.”
In a recent
IBM study, 63% of C-level executives worldwide already thought cloud technology was the most important business tech to keep an eye over the short-term. Mobile technology, the second on the list, was essentially cloud-driven too.
This shows that the shift towards cloud technology is already underway. In 2010, firms in the Asia-Pacific invested S$3.7 billion in cloud technology (5% of their technology spend). Five years later, that figure had shot up to S$18.6 billion in 2015 (or 22%).
Glenn Dittrich, director, smarter workforce at IBM, said that this would grow even further. In fact, IBM predictions show firms will put a further 15% of their spend towards cloud technology by 2018.
“If you think about the overall IT expenditure on the cloud in the region, there is tonnes of runway still to go,” he told
HRD.
