SaaS, a.k.a. software as a Service, is the latest rave within the technology world and that includes, HR Information Systems, HRMS and HR software systems. With a SaaS model, you don’t purchase the software; you rent or subscribe to the service and pay a certain dollar amount per employee per month or per payroll. The advantage is lower up front cost and less IT involvement since the product is hosted by the HRIS vendor. The negatives are that over time you will end up paying more for a SaaS option than buying the system outright. The question addressed in this article is “Is SaaS an option you should look at when considering the purchase of HRIS or HRMS software systems?”
As the owner of CompareHRIS.com, I have to remain unbiased. We list vendors on the site who offer SaaS models and those that offer purchase models. If I take a stand, someone is not going to be happy. I’ll likely get yelled at by someone. I just don’t want to get sassed, LOL. Besides, if I were to form an opinion on which option was better, my opinion would be biased based on the fact that I sold purchase only HRIS systems against the SaaS model.
I’m not going to get involved in this argument and luckily I don’t have to. A number of our HRIS vendors have provided very informative articles pitching the pros and the cons of the model. If you are considering purchasing an HRIS HRMS solution, I recommend reading each of these articles to assist with determining if the SaaS model works for your company.
Articles In Favor Of SaaS (Software as a Service)
Software as a Service HR Solutions
Is SaaS the right fit for your Company?
Articles Opposing SaaS (Software as a Service)
Why SaaS May Not Be a Good Fit for HR
The Hidden Traps of HRMS Software as a Service
I welcome any comments you may have regarding this article and the SaaS format.