The future of SAP Payroll

SaaS solutions conquer the SAP HR world

Location-independent access, cost-efficient license models, low operating costs – there is a lot to be said for the use of SaaS in HR departments. It is no surprise that 72% of the companies surveyed in our 2024 trend study stated that they use a cloud application in Human Capital Management (HCM).

The shift to the cloud in the SAP environment is largely driven by SuccessFactors. This solution stands out for its user-friendly interface and comprehensive features, covering the entire life cycle of an employee. From recruiting to onboarding to further training and development. SAP SuccessFactors offers a powerful HCM suite however, one key challenge remains:  The lack of an integrated payroll function.

For companies in the SAP ecosystem, this means either postponing the move to SuccessFactors until it fully supports all HR functions or continuing to operate SAP HCM on-premise in parallel with SuccessFactors. There is no one-size-fits-all solution as to which path is the right one; it depends on many factors, especially your organization’s unique transformation roadmap.

New requirements for SAP partners

New questions and support requirements are arising for companies as a result of this transition phase. According to the trend study, the breadth of the service portfolio is now a critical factor when choosing an SAP partner: it is no longer enough for SAP partners to simply manage isolated implementation projects and then provide standard support and maintenance. Companies want a long-term and holistic partnership that include ongoing consulting and continuous system optimization as core services. Read which important criteria to consider when choosing an SAP partner in our SAP Application Management Trend Report 2024.

At NTT DATA Business Solutions, we’ve adapted to meet these evolving customer requirements: Our Application Management Services go far beyond the traditional scope, aiming to proactively support companies in the successful transformation of their HR applications. But what does this mean in concrete terms for SAP Payroll?

Confidently manage the transition to the cloud with AMS

We offer companies tailored services to help future-proof their HR operations and avoid unnecessary delays in modernization. For example, we advise on when a partial introduction of SuccessFactors makes sense, which transition scenarios are possible, and which preparatory measures need to be taken. For those seeking a simpler solution, we also offer complete outsourcing of payroll processing.

We offer coordinated application management services for the ongoing operation of your digital HR applications: We take over where internal IT specialists lack the time and expertise. We monitor your systems and continuously optimize them to enhance efficiency, strengthen security and ensure compliance. This proactive approach allows you to take advantage of the opportunities of digital evolution at an early stage.

When SuccessFactors fully supports payroll and you are ready to make the move, our extended AMS will come into its own. As powerful as SuccessFactors is, its configuration and operation require expert know-how. Given the current shortage of skilled workers, it is becoming increasingly uneconomical for companies to develop this expertise in-house. We close the gap by taking over the migration process and providing ongoing support for your users.

Conclusion

HR departments within the SAP ecosystem are at a critical phase of their cloud journey. In order to set the right course and ensure smooth operations, more and more companies are looking for SAP partners who can provide both strategic and operational support. At NTT DATA Business Solutions, we see ourselves as an innovation and transformation guide, offering holistic AMS to help you successfully navigate this pivotal transition phase.

Are you interested in finding out what other developments are currently driving companies in the SAP ecosystem and discover other areas where AMS is gaining in importance? Then read our free trend study.