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Moving to SaaS: Reasons and How to Make the Shift

Written by Salary.com Staff

April 28, 2024

Moving to SaaS: Reasons and How to Make the Shift Hero

Today's businesses always need to be adaptable and produce new ideas quickly to stay ahead. One important part of a company that often gets neglected is Human Resources (HR).

HR is important for making sure a company does well. But as companies grow and new technology comes out, the old HR systems cannot always keep up with what employees need. To keep up with the times, businesses need new HR software called SaaS that can help them work better and compete in the market.

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What is Software as a Service (SaaS)?

Software as a Service, or SaaS, is like borrowing software that is stored on the internet instead of on your computer. SaaS service providers take care of everything, and you can use the software by connecting to the internet. Instead of buying the software outright, businesses pay a monthly fee to use it.

What Are the Benefits of Using a Saas Solution?

When businesses switch to a SaaS solution from a CSP vendor, they get many advantages. Here are some of them:

  • Low installation cost

SaaS providers offer plans that help businesses get started online without spending too much upfront. Some providers even let businesses customize their plans, but this can cost extra. Even with fancy features, SaaS is comparably cheaper than buying and setting up your own software.

  • Cost-effective

SaaS gets rid of all the costs for buying and setting up hardware and software. That means no more paying for upgrades or unexpected problems. It is considered much cheaper overall.

  • Scalability

SaaS works like a pay-as-you-go system. If a business grows and needs more space or features, they will need to pay more. And when they do not need as much, they can pay less.

  • Accessibility

With SaaS, anyone can access the software anytime, anywhere. Whether employees are working from home or customers are using it, it is always available. This is great for businesses with remote workers or customers in different time zones.

  • Collaboration

SaaS makes it easy for people to work together. For example, a company's customer support team can stay in touch with customers all the time. Plus, people can share files, chat, or even have video calls to get work done faster.

Understand the Risks of Using a SaaS Solution

SaaS solution brings several advantages, but it also comes with disadvantages and risks you must know before deciding. Here are a few:

  • Need for Strong Internet: SaaS needs a good internet connection. When the connection goes down, it can hurt your business or annoy your customers. Relying heavily on the internet can be risky.
  • Security Concerns: There is a risk of security issues with SaaS. Since it is online, there is a chance hackers may try to steal your company's data. IT managers must ensure the data is protected from unauthorized access.
  • Less Control: When you use a SaaS solution, you may not have as much control over it. You cannot change the software much unless the SaaS provider allows it and you are willing to pay for changes.
  • Generic Features: SaaS solutions usually come with standard features. This can mean you must compromise on what your business needs. You must know exactly what features are important for your business before choosing a SaaS solution.

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The 5 Steps of Switching to SaaS

Moving to SaaS needs careful planning, but even with good planning, things may not always go in order. The main goal is to make the move as smooth as possible by planning well and being ready for any changes.

Here are the five steps to switch to SaaS:

  • Road Mapping

Figure out what needs to be done by looking at what you already have and what the new software can do. Plan based on research and analysis to estimate how much work is needed.

  • Design

This step is about figuring out how to fit the new software into your current setup. Decide whether you need to change your setup completely and how to connect everything together. Try to use the new software's features as much as possible, rather than changing it to fit your old ways.

  • Change Management

Make sure everyone in your business is ready for the switch. Train them in how to use the new software and listen to their feedback. This step is important for a successful switch.

  • Testing

Before you make the switch, test everything to make sure it works well. Check how the new software, connections, and systems perform to avoid any problems during the switch.

Once you have planned and tested everything, it is time to make the switch and start using the new software.

Signs You Are Ready for SaaS

You may be ready for SaaS when you want to run your business smoothly and use the latest tools. Here is how you can tell:

Using Industry Best Practices

SaaS comes with built-in best practices, so if you are okay with changing how you work to follow these practices, then SaaS may be for you. Before, companies customized software to fit their own way of doing things, but SaaS encourages using the best practices that come with the software.

Accessing Latest Features

SaaS providers keep updating their apps with new features regularly. When you want your employees to use the newest and most effective tools, then SaaS can help. This can boost productivity, save costs, and increase profits eventually.

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Avoiding Upgrade Hassles

When you are tired of dealing with software upgrades and maintenance, SaaS may be a good fit. With SaaS, you do not have to worry about upgrading software yourself. This frees up time for your tech team to focus on more innovative projects, such as using machine learning or automation to improve your business.

Switching to SaaS can help your business profit more, become more flexible, and build better relationships with customers. Managed SaaS services can handle all the technical requirements so you can focus on growing your business. Whether or not you need to switch depends on what your business needs and goals are. As technology gets better and SaaS becomes more affordable, more businesses will likely make the switch.

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