Study reveals cloud benefits outweighing risks for HR and payroll adoption

Wednesday, April 06, 2011

According to a recent study conducted by IQPC South Africa, more companies are experiencing the benefits associated with human resources and payroll adoption of cloud computing than potential risks.

The ability to network virtually among various workers has increased efficiency for many HR departments adopting cloud-based solutions, the study found. However, greater adoption of cloud services has not taken place, as many organizations are still skeptical of managed IT service's security.

Dave Philp, COO of a major technology company, recently addressed these fears and attempted to reduce corporate anxiety.

"From the moment your data leaves your desktop, it is securely encrypted, delivered over managed networks and stored in remote server farms with some of the most advanced security protocols in the world," Philp stated. "From a logical point of view, it would seem the benefits of cloud services far outweigh the perceived drawbacks and companies should put HR and payroll software delivered over the cloud firmly on their radar."

If more companies continue to experience the benefits cloud-based solutions bring, the technology's market could grow considerably. IDC recently reported worldwide IT spending on the cloud will increase to $44.2 billion by 2013.