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Findings from PwC’s 2014 HR Technology Survey
PwC + Oracle: HR Cloud Point of View Findings from PwC’s 2014 HR Technology Survey It’s no surprise that more and more companies are moving their HR applications to the cloud to boost innovation, increase flexibility, and control costs. The shift is fueling tremendous growth in the HR technology space, and many organizations are using Oracle solutions to meet these challenges. Drawing from PwC’s 2014 HR Technology Survey of nearly 270 US-based companies, we analyzed trends surrounding Oracle and cloudbased HR applications. Key HR Cloud Drivers Transitioning to cloud-based HR applications can deliver big benefits. Our survey indicates that organizations are taking this step to boost innovation, lower cost of ownership, and reduce their dependence on IT. • Over 40% of respondents who have moved to the cloud say that a primary motivator was the ability to take advantage of software innovations more quickly. • Lower cost of ownership, cited by nearly 40% of respondents, was the second most common motivator. • A desire to reduce their dependence on IT was another key motivator, cited by 11% of respondents. Top HR Cloud Barriers Despite the advantages of cloud computing, many organizations are experiencing unexpected challenges along the way. This indicates that leaders need to place greater emphasis on the cloud migration planning stage in order to realize the benefits. Key findings from the survey include: • Organizational readiness and process transformation are among the top HR cloud barriers. • Many organizations were not ready to give up customizations and embrace the SaaS mindset. • Many are also falling short when it comes to strategy and measurement. In fact, 55% of respondents either didn’t create a business case or weren’t sure they had one. Of those that did create one, 47% did not confirm that they achieved the anticipated benefits. Top HR cloud Implementation challenges • Not thoroughly prepared for the process transformation required • Organization’s readiness to give up customizations and embrace the SaaS mind-set • Lack of internal resources to assist with the project • Lack of skilled/available resources in the market who know the product Business case achieved? PwC + Oracle: HR Cloud Point of View Findings from PwC’s 2014 HR Technology Survey Cloud Adoption Trends The top HR platform priorities for HR departments are core HR and recruiting, which is consistent with last year’s findings. As companies move processes such as these to the cloud, we are seeing differences in adoption paths based on company size. • Small and mid-market organizations comprise the bulk of those shifting HR and payroll to the cloud. For example, more than 70% of our survey respondents with core HR and payroll in the cloud have less than 5,000 employees. 10% of respondents with core HR and payroll in the cloud have more than 10,000 employees. • Most organizations—including large ones—are moving recruiting and performance management to the cloud. 57% of respondents with more than 5,000 employees enable their performance management through cloud software. 61% of these larger organizations use cloud software for recruiting. Oracle provides a unique opportunity for clients to shift HR processes to the cloud in a phased (or modular) approach, which is easier for some organizations than a larger-scale replacement of their core HCM system. With flexible technical tools to seamlessly integrate cloud and on-premise HR applications, Oracle allows companies to make the transition at their own pace. In Summary The cloud can offer tremendous advantages including more innovation, greater IT independence, and potential cost savings. Getting there successfully, however, requires a solid strategy and significant changes across many aspects of the organization—well beyond technology alone. As the first alliance partner to take a client live on Oracle HCM, PwC continues to lead the way with specializations across Oracle HCM Cloud applications, dedicated global Oracle Cloud Centers of Excellence, and a proven cloud methodology and associated tools. Our deep experience and investment in Oracle HCM enable us to deliver rapid implementation and data conversion while promoting the delivery of measurable business value. For more information on the 2014 PwC HR Technology Trends Survey, please refer to www.pwc.com/oracle. “We congratulate PwC in achieving the 2014 Oracle Excellence Award for Specialized Partner of the Year – Global in the Oracle Cloud category. This achievement is a testament to their dedication to excellence and to providing customers solutions that drive real business value and results.” —Rich Geraffo, Senior Vice President, North America Technology Division, ORACLE For more information on PwC's Oracle cloud HCM offering: For more information on PwC's HR Technology Survey: Sheryl Johnson / Principal 972-345-2124 [email protected] Dan Staley / Principal 770-331-7417 [email protected] Jeff Trujillo / Director 303-517-6139 [email protected] Murali Gandi / Director 847-226-2364 [email protected] © 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.