On Premise Schizophrenia Part 1: On Premise Erosion

This is the first of a three part blog on why I like SAP E-Recruiting as an on premise solution or not. Though my livelihood currently depends on them, I have mixed feelings about on premise software solutions. In the first blog let's start with integration as a double edged sword for SAP. In the next blog I will extol the virtues of E-Recruiting and enterprise integration. In the third blog I will give my opinion on the industry and what we consultants will be doing in the future.

Burger King runs SAP, and SAP software is somewhat like Burger King. In terms of the functionality, the external vendors that you can integrate with, the look and feel of the system, you can have it your way. To a large extent this involves going into the kitchen and cooking it yourself. It's an awesome kitchen with the best possible culinary technology, but you still have to make decisions and do the chopping and sautéing. Okay I'm bad with analogies.

In the next blog I'll get into the often overlooked virtue of integration between HR and recruiting. For now I'll say the following that have always been true:
  • When integrating with external vendors such as background check vendors, SAP clients have to do it themselves (with the exception of HireRight who are certified against background check interface and some resumé parsing vendors). The good news is that clients can choose which vendors they work with.
  • The business owners (in this case recruitment) don't usually care about HR integration. These are issues that affect HR or compliance.
Now I'll tell you why the value proposition of on premise recruiting technology is being eroded (this excludes super sophisticated large organizations that want it their way):
  • As more technology solutions outside of core applicant tracking enter the fray, the need to integrate with them increases. Examples are at a minimum job boards and background check vendors. Also include social media recruiting, assessments, online interview solutions.
  • More of talent management is being provided as Software as a Service (SaaS).
  • Recruiting technology as an operating cost rather than a capital purchase is currently  more palatable. This makes it harder for IT to say "We use X platform, and by the way it will cost $900K to implement."
  • Integration needs of the outside world (social media, third party assessment tools, job boards, etc.) exceed the internal integration needs (at least in terms of recruiter priority, which counts for a lot).
  • Sometimes people (namely recruiters) just want a burger with fries. They want it fast, and they want it cheap. Most burgers don't need software requirements documents written by clients.
I hope this post has at least been entertaining and you can see example of it in your own professional IT or HR life. Next up, we'll talk about the value of integration.

Cheers, Mark





 

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