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Leading HR teams are using cloud technology to improve delivery of HR services says Deloitte


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8 November 2012: In the emerging cloud services environment, Human Resources (HR) has a responsibility to help organisations adjust its people and processes to operate more effectively according to professional services firm Deloitte.

In the global report “Human Capital trends 2012: Leap ahead”, Deloitte highlights how leading HR departments are already using cloud technology to improve the delivery of HR services.

Andrew Hill, Deloitte Consulting Human Capital partner, has found that the technologies and processes associated with cloud are rapidly maturing and are now gaining acceptance as standard business practices.

“Recent forecasts for 2012  by International Data Corporation, predict that 80 % of new software applications will target the cloud and that spending on cloud services will exceed $USD 36 billion. This indicates a rate of growth four times faster than the IT industry average.

“HR is helping IT tackle the massive changes associated with cloud, which is redefining the value of the IT function and transforming the roles, objectives, and purpose of the IT workforce. This shift requires new responsibilities and skills, including an increased focus on supplier management, business requirements, and customer needs.

“The rise of cloud may lead to reduced staffing levels for in-house IT, especially for lower-value activities that are being commoditised by cloud,” said Mr Hill.

The report identified five key drivers for cloud adoption:

  1. Cost reduction which leads to improved utilisation and saving of money through consolidation of servers and data centres.
  2. Reduced capital investments which mean replacement of capital expenses with operating expenses so organisations only pay for what they use.
  3. Faster implementation as the cloud allows organisations to get up and running quickly by avoiding the need to acquire hardware or to develop and configure applications.
  4. Agility and adjusting to changing demand and market requirements. This also includes taking advantage of vendor best practices, which are drawn from multiple organisations and rolled out quickly.
  5. Smarter decisions. Taking advantage of cutting-edge tools that support fact-based decision-making.

“Leading HR teams are going a step further by leveraging their experience and expanding their role in helping the rest of the enterprise manage and accelerate the transition to cloud. By taking a lead role on cloud, HR is easing the transition and helping organisations acquire and develop the cloud-savvy talent needed to capitalise on the full potential of cloud services,” added Mr Hill.

NB: See our media releases and research at www.deloitte.com.au

Digital disruption: Short fuse, big bang?, the newest paper in Deloitte's Building the Lucky Country series ,  consider the magnitude of digital transformation within Australian business and government – the size of the 'bang' – as well as how quickly 18 industry sectors will be affected – the length of the 'fuse'.

Follow us – @DeloitteNewsAU

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Contacts

Name:
Andrew Hill
Company:
Deloitte
Job Title:
Partner, Consulting
Phone:
Tel: +61 3 9671 6750
Email
andrewhill@deloitte.com.au
Name:
Jane Kneebone
Company:
Deloitte Australia
Job Title:
Corporate Affairs & Communications
Phone:
Tel: +61 3 9671 7389, Mobile: +61 4 1614 8845
Email
jakneebone@deloitte.com.au

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