| Application service providers offer a type of | | | | Management Systems" by Paul Hamerman, Web |
| outsourcing that increasingly answers | | | | hosted HR applications are becoming more popular |
| requirements to control and secure company data | | | | because the hosting model is simply more |
| while experiencing, the convenience of minimal | | | | cost-effective.Why Go to the Web? |
| technical overhead. | | | | When several companies are using the same |
| The hosted model allows a company to | | | | infrastructure - provided by the application service |
| outsource the maintenance and overhead of a | | | | provider (ASP) - economies of scale extend the |
| technology platform and software, yet maintain | | | | promise of the best and most robust systems at |
| full control over the sensitive data and | | | | the lowest price point to each individual client |
| management of the process. | | | | company. Hosted applications provide a blended |
| According to research by Price-Waterhouse | | | | model that captures the best of in-house HR |
| Coopers, "Total Cost of Ownership: Warning Signs | | | | administration with the best of outsourced HR |
| of Hidden In House System Costs," companies | | | | administration. The hosted model allows a |
| can shave up to 80 percent of the time it takes | | | | company to outsource the maintenance and |
| to complete payroll simply by automating the | | | | overhead of a technology platform and software, |
| process. | | | | yet maintain full control over the sensitive data |
| Qutsource or insource? It has never been an | | | | and management of the process.Easier to Expand |
| easy question to answer. HR directors love the | | | | Fast-growing, Wisconsin-based Paragon, which |
| security of running their systems in-house, and | | | | helps companies with their IT needs, and SRP |
| yet the expenses of maintaining the | | | | Federal Credit Union, based in South Carolina, |
| infrastructure, licenses and technical staff are | | | | froze the number of people in their HR |
| often prohibitive. Yet with traditional outsourcing, | | | | departments despite adding 70 and 125 |
| the potential lack of control can be a concern. In | | | | employees, respectively. That's an annual savings |
| addition, many more traditional HR practitioners | | | | for each of $45,000 to $65,000 in salary savings |
| are becoming more of a key element in the | | | | by outsourcing several HR functions. Additionally, |
| business and total rewards strategies. This allows | | | | these firms are seeing significant return on |
| little time for getting involved in the day-to-day | | | | investment (RO!) from automated time collection. |
| administrative functions. While outsourcing may | | | | According to the 2003 Price Water house- |
| not be the solution for all companies, this article | | | | Coopers report, "Total Cost of Ownership: |
| provides information on its potentially cost-saving | | | | Warning Signs of Hidden In House System Costs," |
| and time-saving benefits. | | | | companies can shave up to 80 percent of the |
| Application service providers offer a type of | | | | time it takes to complete payroll simply by |
| outsourcing that increasingly answers | | | | automating the process. Those with 500 |
| requirements to control and secure company data | | | | employees can save $2,600 per pay period by |
| while experiencing the convenience of minimal | | | | moving to an electronic system, according to |
| technical overhead. According to the Nov. 4, 2004, | | | | figures compiled by iEmployee in the 2005 white |
| Forrester Research report, "Trends 2005: HR | | | | paper "Online Pay Stubs. |