The cloud-based HR services offering contains many of the same services that traditional HR BPO/multi-process HRO (MPHRO) suppliers have provided, plus a few new components. Services can be divided into the three broad categories of pre-deployment, deployment, and post-deployment services:

• Pre-deployment services include HR cloud consulting, focusing largely on HR SaaS technology selection and design, plus HR transformation and change management
• Deployment services focus on the implementation of a SaaS-based HR system, including SuccessFactors Employee Central, Workday HCM, Oracle HCM Cloud, or a vendor proprietary HR system
• Post-deployment services include application management services (AMS) and HR BPO/HR BPaaS.

Currently, most of the activity is around cloud consulting services, but another key focus area is for AMS services by organizations that have already implemented a cloud HR system and now realize they need ongoing AMS support.

Organizations focused on cloud consulting services today will likely transition through each of the three broad service categories over time, but many first movers have adopted services beyond this natural sequence. For example, many large organizations have been engaged in HR BPO/MPHRO services for many years and have relied on their existing supplier for cloud consulting services. For those companies that have already taken the next step and migrated to a cloud environment, they have often maintained HR BPO/MPHRO services in some capacity, often with a narrowing scope of back office support and more reliance on technology modules, especially within talent management and workforce development services. Many organizations that have been operating in this environment for some time are now realizing that they need ongoing AMS support and are beginning to add this service into the mix.

When it comes to deploying cloud-based HR systems, vendors’ technology approaches are as follows:

• ~40% of vendors with a cloud-based HR services offering have adopted an agnostic technology approach that includes Workday HCM, SuccessFactors, and Oracle HCM Cloud
• ~ 35% of vendors have a preferred HR cloud technology, but will provide support on other cloud systems
• ~25% of vendors have developed their offering exclusively around one particular cloud platform.

NelsonHall’s next major HRO market analysis study examines the cloud-based HR services market in detail, and reveals the current and future shape of HR cloud services, as well as market drivers and critical success factors. For more information, contact Guy Saunders.