| > | | | | updates either, since the provider maintains all such |
| Before you begin evaluating HR software systems, it's | | | | details. |
| a good idea to determine if you are looking for a | | | | Lower Up-Front Costs |
| hosted solution or to purchase one out right. This article | | | | With ASP applications you will usually pay some type |
| explains the benefits of each. | | | | of minimal setup cost, but once the system is live you |
| If you purchase your Human Resource Information | | | | will pay a monthly amount per employee. Costs range |
| System (HRIS) products you will maintain your data on | | | | from $2 to $5 per employee per month. So the up |
| your own servers. An ASP system allows the | | | | front costs is less but over time (usually a couple of |
| customer to maintain their information on the | | | | years) you end up spending more for an ASP solution |
| provider’s server and access that data | | | | than if you’d purchased the product outright. |
| remotely. | | | | With that in mind you need to weigh the importance of |
| Advantages of ASP HR Software Products: | | | | the other benefits. |
| Contingency Planning | | | | Advantages of Purchasing Your HR Software |
| I live in Tampa, Florida. In 2004 our state was hit by | | | | Product |
| four hurricanes. I have had a number of customers | | | | The disadvantage of ASP systems is that, over the |
| ask about contingency plans in case of a storm. This is | | | | long term, they can be expensive when compared to |
| one of the advantages an ASP system can offer; the | | | | purchasing a system outright. If your company plans to |
| data is not on your server, so as long as you have | | | | use the HRIS solution you pick for at least five years, it |
| Internet access your data will be available to you. | | | | will be far more cost-effective to actually purchase |
| No IT Involvement | | | | the application. And if your company is looking to lower |
| Other advantages are automatic updates and freed | | | | the up front investment and pay over time, remember |
| server space at your location. Your IT staff | | | | that most companies will offer a lease to own option |
| won’t have to maintain or house the data with | | | | on the software. |
| an ASP system. They won’t have to install | | | | |