"By 2021, more than 80% of organisations headquartered in APJ will deploy at least one cloud HCM application". * For an organization with a high number of countries with relatively low volumes of workers, it is generally easiest and cheapest to outsource payroll. But for countries with medium-to-high volumes of workers, there doesn't seem to be a clear trend either for or against outsourcing payroll. What matters most is identifying whether outsourcing or insourcing payroll best fits the context and priorities of your organization.

Recommendation

Application leaders responsible for transforming HCM in APJ should:

  • Evaluate vendors based on their ability to offer APJ specific priorities discussed in this research. Do not focus solely on the leading global HCM vendors, as in many cases a regional vendor with the required language and legislative support and specifications may be a more suitable choice.
  • Assess vendors on their capability to enable digitalisation via mobile applications, as this region has shown remarkable adoption of mobility compared to the rest of the world. Score these requirements higher in your evaluation.
  • Evaluate vendors on their ability to handle data and application integration, as well as their capability to embrace local support and partners. Ensure any prospective vendor has a compelling localization roadmap for the next 18 to 24 months for the countries that are in scope.
  • Balance the normal focus of cost optimization with keeping pace with transformation to support your enterprise's digital business journey.
*Key Factors When Planning a HCM Technology Strategy in Asia Pacific and Japan, Ranadip Chandra, Koji Motoyoshi et al., 14 June 2018

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