A SUMMER TRAINING REPORT

ON
A COMPARATIVE STUDY ON CONSUMER
PREFERENCE AMONG CLOUD HRMS VIS--VIS
ON-PREMISE HRMS

(Submitted in partial fulfillment for the requirements for PGDM )

By

Kautilya Kashyap Saikia

Roll No. DM13151035
Batch of 2013-15

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO 49

Knowledge Park 3, GREATER NOIDA-201306 (UP)

SUMMER TRAINING COMPLETION CERTIFICATE

(i)

CERTIFICATE OF ORIGINALITY

I_____________________________________ Roll No ________________________of

Batch 2013-15 is a fulltime bonafide student of first year of PGDM Program of Accurate
Institute of Management & Technology, Greater Noida. I hereby certify that this project
work carried out by me at __________________________________________________
the report submitted in partial fulfillment of the requirements of the program is an
original work of mine under the guidance of the industry mentor __________________
and the faculty mentor ______________________________________________and is
not based or reproduced from any existing work of any other person or on any earlier
work undertaken at any other time or for any other purpose, and has not been submitted
anywhere else at any time

(Student's Signature)
Date: ________________

(Faculty Mentor's Signature)

Date: ___________________

(ii)

ACKNOWLEDGEMENT

In successfully completing my project report, I am indeed indebted to a large no. of people who have
encouraged and helped me in a variety of ways. Its indeed a privilege to express my gratitude to the
people involved.

I express my deepest gratitude to Ms. Amanpreet Kaur ( Manager-Sales, Xecute HR Solutions

Pvt. Ltd.) for her invaluable guidance and blessings.
I am very grateful to Mr. Arnab Ghosh ( Manager-Sales, Xecute HR Solutions Pvt. Ltd) for
providing me with an environment to accomplish my project successfully.
I express my sincere thanks to my faculty guide Mr. Satish Kumar Matta, for being instrumental
in the completion of this project with his complete guidance.
I also thank all the staff members of my college and technicians for their help in making this
project a successful one.
Finally, I take this opportunity to extend my deep appreciation for my family and friends, for all
that they meant to me during the crucial times of the completion of this project.

(iii)

EXECUTIVE SUMMARY

Changes on the surface of HR don't begin to reveal the complexity of what is going on behind
the scenes. HR professionals are rethinking everything from HR's structure to its delivery of
services to the very competencies that it needs to survive and succeed.
Outsourcing HR functions is still a relatively new frontier in business practices - it's been less
than 10 years since its debut - and it's still growing rapidly globally. Most analysts predict that
the growth will continue at least through 2008. Many companies currently outsourcing HR
functions say that they intend to continue and expand outsourcing in the coming three years to
include leave management, training and development, payroll, recruitment, health and wellness
program administration, and global mobility.
The main objective of this study is to know which module of HRMS is preferred in the organizations
among Cloud HRMS and On-premise HRMS and understanding why that particular module is preferred.
This study further helps in knowing if there is any significance difference between Cloud and On-premise
HRMS on the basis of cost and also on the basis of data security.
The project begins with in-depth research about Cloud and On-premise HRMS software. The HRM
(Human Resource Management ) System that organization need to implement and then the focus gets
shifted to deeply understanding the concept and listing out the main features of Cloud and On-premise
HRMS software tool. The conclusion drawn from the research in the form of data is represented in under
suggestions.

(iv)

TABLE OF CONTENTS
Page No.
SUMMER TRAINING COMPLETION CERTIFICATE------------------------

CERTIFICATE OF ORIGINALITY-------------------------------------------------- II
ACKNOWLEDGEMENT----------------------------------------------------------------- III
EXECUTIVE SUMMARY---------------------------------------------------------------- IV
TABLE OF CONTENTS-------------------------------------------------------------------- V
CHAPTER 1 : INTRODUCTION---------------------------------------------------

1-29

CHAPTER 2 : LITERATURE REVIEW------------------------------------------- 30-34

CHAPTER 3 : RESEARCH METHOD-------------------------------------------

35-38

3.1 Research Problem---------------------------------------

35

3.2 Research Methodology---------------------------------

35

3.2.1Research Objectives------------------------

35

3.2.2 Hypothesis of the study---------------------

35

3.2.3 Research Design-----------------------------

36

3.2.4 Sampling Design-----------------------------

36-37

3.2.5 Data Collection-------------------------------

37-38

3.3 Scope and Rationale of the study--------------------------

38

CHAPTER 4 : FINDINGS AND ANALYSIS/RESULTS---------------------

39-48

CHAPTER 5 : CONCLUSIONS AND RECOMMENDATIONS-----------

49-50

REFERENCES---------------------------------------------------

51

BIBLIOGRAPHY-----------------------------------------------

52

ANNEXURES-----------------------------------------------------

53

(v)

CHAPTER 1 : INTRODUCTION
Company Profile :
XecuteHR Solutions, Gurgaon :
XecuteHR which is a technology driven Human Capital Enhancement organization was
founded in August 2009. In the last 2 years XecuteHR have successfully established themselves
in the other HR delivery and support verticals. The current portfolio of XecuteHR includes
services in the areas of Recruitment Process Management, Onboarding Management, HR
Operations Management, HR Shared Services, Strategic HR Consulting, Search and Selection
and Temporary Staffing.
XecuteHR has its own in-house developed HR software named Xite that supports delivery across
all possible HR verticles including Recruitment, Onboarding, Employee database Management,
Attendance and leave Management, Payroll and Compliance Management, Performance
Management, Employee Query Management and others.These models are highly customizable
and offers services at the click of a button with convenience to the process manager as well as
the end users (employees, managers and management) of any organization.
Vision and Mission :
Every company has got its own vision and mission. The vision and mission of XecuteHR
Solutions is given below.
Vision :
Empowering organizations through unique human capital services and solutions.
Mission :
The mission of XecuteHR Solutions is To Create Value and Make a Difference everywhere
we engage. by offering the highest level of end to end services and solutions in HR thus
empowering organizations towards leading the competition with imparting a greater focus on
strategic core business areas.

XecuteHR is committed to delivering informed, IT-enabled HR services which are based on a

superior industry knowledge and including a real understanding of the HR issues that affect both
their customers and clients.
To continuously improve their customer's ability in efficiently managing the employee lifecycle
of data, information, and knowledge.

Management Desk :
(i) Koustuv Mitra
Founder, XecuteHR Solutions Pvt. Ltd.
Koustuv Mitra is an HR Professional with an experience of 24 years in various fields of Human
Resource. He has an experience in leading HR in various multinational companies Like
Convergys, Electrolux and Airtel. Moreover he also held a very senior HR Leadership position
in BP and Coca Cola. His core experience lies in Organization Transformation and Employee
Productivity and have led the HR part in leading to a significant increase in Profitability and
Employee satisfaction. In his last assignment as Head of HR for the Non- mobile business for
Airtel, he was responsible for successfully managing outsourcing of a critical function (4000+
employees) and this is said to be the largest transition done anywhere in the world in any
company that provides Telecom services.

(ii) Dimple Bakshi

Head, HR Service delivery.
Dimple Bakshi is an HR professional with an work experience of 14 years in various reputed
organizations like Bank of America, Convergys India, Accenture, Ernst & Young and Global
Adjustments. Her key areas of expertise lies in Recruitment Solution Design and
Implementation, Staffing Solution Design and Implementation, Recruitment Process
Outsourcing, HR Service Delivery Control and Management, IT Tool Development and
Deployment including Setting up and harmonization of HR processes.

(iii) Dipankar Ghosh

Head XiTE
Dipankar Ghosh has an experience of 26 years in various organizations like Lafarge Cement Plant Safety System Tracking, BAPIL - Apeejay - Williamson Tea Ltd, Coastal Roadways Ltd,
KITPLY

Arunachal

Plywood

Industries

Ltd,

The

Park

Tollygunge

Club

Saraswati Press (Government of India Undertaking), World Bank - Accounting for WBHSDP.
He is an expert in Application Development , Database Administration in wide variety of
business applications, Client/server and relational database design using MS-SQL Server,
Migration projects, Crystal Reporting.

(iv) Nidhi Malhotra

Business Head-Search and Selection (Gurgaon)
Having an experience of 10 years in organizations like Elixir, Baxy Infosol, Pinnacle BPO City
Pvt Ltd, Systems America, Convergys India Services she is an expert in Market Penetration
strategies, Client Management and Client Retention, Service Delivery-Contingency Hiring, Exec
Search and Retained Search.

XiTE :
The team at XecuteHR has not only created its web-based Human Resources Management
Solutions but has also successfully implemented it in more than five client environments. It is
named as XiTE HRMS suite and the HR software solutions are hosted on the NaviSite server and
is provided as a SaaS solution to medium and large enterprises including multinationals.
It is built using Microsoft Technologies and this suite consists of over 25 HR sub modules to
cover all aspects of an employee lifecycle in an organization starting from recruitment to onboarding, employee interact, performance and compensation management, query tracking and
finally alumni management. It provides reliable and accurate strategic and operational inputs to
all concerned.

Product Features of XiTE HRMS suite :

It covers all areas of Human Resources including Employee Performance Management,
Applicant Tracking and Recruitment, On-boarding, HRIS (Employee Database Software),
Payroll Management, Query Management.
It is completely web based and can be accessed anywhere and at anytime from any machine
connected to an internet.
It is available as a standard HRMS product but it has also customization options to help adapt to
client specific process and needs.
The product is completely scalable and provides solutions to organizations of various sizes
including a stsrt-up of 20 employees to an enterprise with thousands of employees.
The various modules of the Suite are extremely modular in nature and can be used as a bundled
product or as standalone modules.
It is highly secure and allows only pre-defined role based access to users.
Operational features to the XiTE HRMS Suite:
It is user friendly with multiple self-explanatory menu options for maximum stake holder
utilization.
All processing through a click of button option,
System generated Alerts to pre-set stake holders,
All modules are supported by extensive built-in reporting,
Option of making customized reports,
All reports available in one page viewcrystel format, excel, pdf downloadable versions/formats,
Modules of XiTE:
There are four modules of XiTE for managing all the Human Resourse processes of an
organization. These modules are listed below

i) XiTE Abridge-Recruitment Management Solution

ii) XiTE Embark-New Hire Onboarding Solution
iii) XiTE Perform-Performance Management Solution
iv) XiTE CWMS- Contract Workforce Management Solution
The details of these modules are given below.
i) XiTE Abridge-Recruitment Management Solution:
With XiTE Abridge, an organization can reach out to the talent pool with big data analytics,
establishing early engagement, allowing their recruitment team an edge in tapping into all
possible sources through integrated searches, involve key decision makers in the hiring decision,
enhance accountability in the hiring systems, keep cost structure transparent, in all realign the
organization to deliver against every talent requirement with speed, accuracy and most
importantly the cost effectiveness.
XiTE Abridge automates and manages the entire recruitment process in a faster, simpler and
effective way. Moreover it also helps in controlling an organizations hiring expenses with:
Continuously upgrading candidate database
Auto sequencing the sources
Real time access to recruiter
Comprehensive searches and intuitive candidate matches saves HR managers time and reduces
organizations recruitment cost by allowing to choose the best-qualified candidates through all
stages of applicant selection.

Fig : Recruitment Process Management Solution

ii) XiTE Embark-New Hire Onboarding Solution
Discovering the right talent match in a highly competitive job market is just the beginning, and
in fact there is still time before the prospective employee will join the organization and
contribute to the cause. It includes the real acquisition of talent as the first step which further
requires maintaining a pull towards the organization.It is a solution which is created around
this need. It is a technology driven solution with a specialist team deployed to manage the entire
employee orientation process. This technology ensures a dedicated window to each prospective
employee, with personalized content for the organization, future team, expected role, policies,
registering and tracking resource and support requirements and also post joining 3 month/6
month survey tools and analytics.
Further on the team of experts ensures that any requirement/queries, analytic outcomes reach the
right team members and get responded to promptly, project managing the entire process.

iii) XiTE Perform-Performance Management Solution:

Continued success is about persistent, collaborative effort in the right direction. Managing
performance continue to be a cycle bound activity. It has to be a live feed of actions been done
by each individuals and the team at large, continuously sharing feedback, identifying areas of
learning, highlighting achievements, recognizing right behaviours, taking timely corrective
actions etc. These all automatically advance into talent and compensation decisions.
XiTE Perform is a cloud hosted solution designed to meet these requirements of todays
organizations. It enablesIndividual employees to stay tuned to targets at multiple levels in an organization.
Collaboration with co-workers on activities, sharing and accessing experiences
A real-time view on the accomplishments by self and others in the respective fields
Engagement and motivation across through continuous dialogue on performance and
achievements.
iv) XiTE CWMS- Contract Workforce Management Solution:
To adapt more easily to the changing market, organizations today incorporated and expanded
their use of temporary workforce. There is time, effort and money that companies end up
expending to manage each of these processes especially also because each one is dependent on
manual process like maintaining attendance registers at each location as an instance allowing
room for issues of reconciliation, errors , delays etc.
XiTE Contract Workforce Management Solution has been created to address this identified
problem. CWMS automates a large part of all the above mentioned issues through this
specialized solution.

Fig : XiTE (XecuteHR Information Technology Enabled)

Some of the eminent clients of XecuteHR are as follows :
i) Ericsson
ii) Penguin Books
iii) DK Publishing
iv) Aramex India
v) Bhartiya etc

Some of the competitors for XecuteHR are as follows :

(i) SAP
(ii) Oracle
(iii) JD Edwards
(iv) Peoplesoft
(v) Sage Software

HRMS (Human Resource Management System):

Currently, technology has become never ending, new technology is always developed to replace
the old technology, where organizations can develop from new IT (Information Technology)
solutions to improve their business processes. Technologies had been changing rapidly,
investigation of technology are required in order to choose appropriate technology for own
needs. In this evolution of technology, HRMS system itself have developed through time. HRMS
is the system that is designed to manage all the Human Resource functions of an organization.
A Human Resources Management System (HRMS) refers to the systems and processes at the
intersection between human resource management (HRM) and information technology. On the
whole, these ERP systems have their origin from software that integrates information from
different applications into one universal database. The linkage of its financial and human
resource modules through one database is the most important distinction to the individually and
proprietary developed predecessors, which makes this software application both rigid and
flexible.
The function of human resources (HR) departments is administrative and common to all
organizations. The HR function consists of tracking existing employee data which traditionally
includes personal histories, skills, capabilities, accomplishments and salary. To reduce the
manual workload of these administrative activities, organizations began to electronically
automate many of these processes by introducing specialized human resource management

systems. HR executives rely on internal or external IT professionals to develop and maintain an

integrated HRMS.
Currently human resource management systems encompass:
Payroll
Time and Attendance
Performance Appraisal
Benefits Administration
Recruiting
Performance record
Employee self-service
Absence management
Analytics
Payroll :
HRMS Payroll provides comprehensive and flexible solution that includes the payroll
functionality needed by midsized organizations to process their payroll quickly and accurately
every time. HRMS payroll supports the needs of most industries, including manufacturing,
services, retail, wholesale, financial, transportation, government, education, construction and
agriculture.
HRMS payroll is very flexible, supporting a series of tax management capabilities, variable pay
plans, including sales commission and a variety of pay frequencies to meet the needs of various
organizations.
HRMS Payroll helps companies to maximize their Return On Employee Investment (ROEI), as
well as optimize their HR and payroll business processes. With HRMS Payroll an organization
can easily meet and respond to the HR and payroll management challenges that it faces

everyday. Thus HRMS Payroll is a payroll software specially designed for managing all the
payroll functions of an organization and it is a very simple, flexible and user friendly module of
the HRMS.
Time and Attendance :
It is a HRMS tool which enables an organization to collect, analyze and take immediate control
of its employees attendance in real time. All these functions are available on on-premise license
and also on cloud basis. This technology reduces the burden of manual processes which is used
calculating time and attendance of the employees of an organization. Time and attendance is an
important function as it is a proof of attendance of the employees. By automating the entire
functions one can easily collect and analyze an employees time and attendance data related to
employee hours worked, overtime etc.
Performance Appraisal :
A performance appraisal is a part of guiding and managing career development. It is a process of
obtaining, recording and analyzing information about the relative worth of an employee in an
organization. In HRMS performance appraisal, analysis of an employees recent success and
failures, personal strengths and weakness and suitability for promotion or for further training is
calculated effectively and efficiently.
The results of performance appraisal can be assessed to identify areas of strong performance of
all employees by department. Standardized performance assessments allows companies to
aggregate, calculate and analyze results to show where performance is strong and where
performance is weak. Thus these areas of strength can serve as opportunities for sharing of the
best practices for other areas of the organization.
Benefits administration :
HR professionals spend up to 30% of their time on routine benefits administration. If a company
offers multiple benefits such as life, health and disability insurance, they have to set up and
administer plans which consists of multiple insurance carriers. When an organization expand
their HRMS to include benefits management functionality, it simplifies benefits setup,
administration, and enrollment for improved efficiency. Inside the HRMS, they will be able to

define benefit plans and enter employee beneficiaries. An organization can even track and
monitor elections of employee and calculate employer and employee contributions for benefits.
When employees leave a company, they can even track COBRA enrollments, coverage details,
and payment history of the employee.

Recruiting :
Attracting, recruiting and retaining the right people are the top priorities of any organizations
success. In todays world, e-recruiting is playing a major role in recruitment policies. In HRMS,
RMS which stands for Recruitment Management System is also playing a major role in
recruitment processes. It is either in-house i.e on-premise or it is hosted in cloud basis. RMS
allows complete applicant tracking and automation of a companys recruitment needs.

Performance record:
This module helps an organization in recording and maintaining the performance records of the
employees on the basis of three parameters namely KPI, competency and behavior. Before the
final decision is made, users can develop their own scenarios in order to analyze the
consequences relating to various conditions in order to determine the budget required for salaries
or bonus payment.

Employee self-service :
It helps in providing the employees with access to their own benefits. ESS (Employee SelfService) solutions allow employees and their managers to view, create and maintain their
information using a web browser. Self-service is a very good way to let employees to find
answers to questions about their paychecks and benefits, as well as update information such as
contact information. ESS also reduces the paperwork burden, while considering and maintaining
the ability to control and approve processes. ESS technology can be used to create a

communication portal that distributes key information about companys policies and benefits to
the entire workforce of the company.

Absence Management :
Within a competitive business environment, the lack of a reliable absence management system
will result in high cost, productivity and risks effects associated with employee absenteeism.
Organizations need to address the complex and diverse requirements that results from managing
absence policies around the globe.
Absence Management enables configuration of transactions and absence plans to eliminate
manual processes, reduce extra costs and to implement requirements according to organizations
policies. Moreover, it also provides full absence visibility for the different roles of the
organization without compromising the individual privacy or company policy concerns.
Analytics :
Using analytics in HRMS, an organization can turn the HRMS data into an implementable and
actionable information and allowing to make better business decisions. One can determine what
data is analyzed and how that data should be presented, and can also build dashboards to help in
getting the required data very easily. With the help of this toolset, one can create, manage,
display and analyze statistics and other metrics, as well as Key Performance Indicators (KPIs)
for HR benefits like payroll, recruiting information and more.
Pre-defined analytics and KPIs are delivered as part of the toolset, along with functionality
allowing users to create an unlimited number of analytics of own or modify existing ones.
In addition to these, automatic calculation, storage, alerts relating to KPIs etc are also included.

Image of an HRMS solution :

Fig : Human Resourse Management System

Cost and benefit of HRMS

No doubt, a huge investment irrespective of size has to be made to implement an HRMS system.
Hence the top management and the decision makers have to be convinced of its benefits as the
importance of accuracy and timeliness in operating, planning and controlling activities in HR
cannot be underestimated. In addition to this several administrative and strategic advantages are
there when it comes to using HRMS. However, atleast five reasons are given for which
companies should use HRMS. These are as follows :

(i) To increase the competitiveness by improving the HR practices.

(ii) To produce a greater number and variety of HR operations in the organization.

(iii) To shift the focus of HR from the processing of transactions to strategic HRM.

(iv) To make employees a part of HRMS, and

(v) To re-engineer the entire HR function

According to a HR Survey it was found that the top four reasons for supporting HRMS in
businesses were to improved productivity within HR organization, cost reductions, return on
investment, and to enhanced employee communications. Companies should quickly realize the
amount of cost reductions and efficiency gains that would be possible as early in the
implementation of an HRMS system, so they quickly set up the implementation process. But, the
payback period, or the time it takes to reimburse the investment, may be as short as one to three
years. HRMS contribute to quality/customer satisfaction, reduction of cost and innovation.
Computerized HRMS function enables faster decision making process, faster development, faster
planning and administration of HR because data is much easier to update, store classify, and
analyze. Moreover, while it may be possible to identify many of the relevant costs (e.g., software
and hardware), it is more difficult to quantify the huge amounts of benefits that are waiting to be
derived from an HRMS system. Beyond productivity improvements and cost reduction, HRMS
potentially affect the revenue channels. Establishing direct and objective benefits measures is
more difficult to achieve. No doubt there are also many costs associated with HRMS
implementation like workers need to have personal computers and global Internet connections.
In addition, there are also transition costs caused by movement of traditional HR to an HRMS as
there may be chances of slowdowns, mistakes, and other consequences associated with changing
traditional systems to integrated ones. Hardware costs for servers and software costs for
application programs also cause considerable expenditure to an organization and moreover there
are costs to continuously update the technology as better technology becomes available.
Therefore many companies hesitate before making such an investment. Hence many firms opt
for less complex and expensive systems before transforming their HR departments fully to an
automatic system. Even the ones who have implemented the HRMS system fully are yet to
realize its complete benefits. A survey by Towers Perrin found that whiles 80 per cent of
respondents affirmed employee self-service ability to lower FIR costs, only 5 per cent fully
achieved this objective; another 35 per cent had only partially achieved that objective, and only 3
per cent was accelerating HR's transformation to a strategic partner.

Different types of cloud :

In this we will know how many types of Cloud are there. There are basically three types of
Cloud Platforms mainly needed for Cloud Computing. They are as follows
(i) Public Cloud
(ii) Private Cloud
(iii) Hybrid Cloud
These are explained below
(i) Public Cloud :
A public cloud is one which is based on the standard cloud computing model. Here, a service
provider makes resources, such as applications and storage, available to the general public over
the Internet. Public cloud services may be free or offered on a pay-per-usage model. It is
managed by the organization it serves.
The main benefits of Public Cloud are as follows:
(a) It is inexpensive and very easy to set up as hardware and application cost are covered by the
provider.
(b) The resources it has are not wasted as users only pay for what one use.
(ii) Private Cloud :
It is a particular model of cloud computing that involves a distinct and secure cloud based
environment in which only the specified client can operate. Private clouds will provide
computing power as a service within a virtualized environment using a variety of physical
computing resource. However, under the private cloud model, the cloud (the variety of
resources) is only accessible by a single organization only providing that organization with
greater control and privacy.
The benefits of using Private Clouds are as follows :

(a) Higher security and privacy:

Public clouds services can implement a certain level of security but there are less security
issues with private clouds because of the techniques such as distinct pools of resources with
access restricted to connections made from behind one organizations firewall, dedicated
leased lines can ensure that operations are kept out of the reach of outsider.

(b) More control :

As private cloud is only accessible by a single organization, that organization will have the
ability to configure and manage it inhouse with their needs to achieve a satisfactory network
solution.

(c) Cost and energy efficiency:

Implementing a private cloud model can improve the allocation of resources within an
organization by ensuring that the availability of resources to individual departments and
business functions can directly respond to their demand. They do make more efficient use of
the computing resource than traditional LANs as they minimize the investment into unused
capacity. This provide a cost saving for an organization.

(d) Improved reliability :

Even where resources (servers, networks etc.) are hosted internally, the creation of virtualized
operating environments means that the network is more prone to individual failures across the
physical infrastructure. Virtual partitions can, for example, pull their resource from the
remaining unaffected servers. In addition, where the cloud is hosted with a third party, the
organization can still benefit from the physical security afforded to infrastructure hosted
within data centers.

(e) Cloud bursting :

Some providers may offer the opportunity to employ cloud bursting, within a private cloud
offering, in the event of spikes in demand. This service allows the provider to switch certain
non-sensitive functions to a public cloud to free up more space in the private cloud for the
sensitive functions that require it. Private clouds can even be integrated with public cloud

services to form hybrid clouds where non-sensitive functions are always allocated to the
public cloud to maximize the efficiencies on offer.

(iii) Hybrid Cloud :

A hybrid cloud is an integrated cloud service which utilizes both private and public clouds to
perform distinct functions within the same organization.
Hybrid cloud models can be implemented in a number of ways:
(a) Separate cloud providers team up to provide both private and public services as an integrated
service.
(b) Individual cloud providers also offer a complete hybrid package.
(c) Organizations who manage their private clouds themselves sign up to a public cloud service
which they then integrate into their infrastructure.
A hybrid cloud is a cloud computing environment in which an organization provides and
manages some resources in-house and also integrates with some other organizations which the
resources are provided externally.
XecuteHR Solutions Gurgaon provides services on Hybrid Cloud.

Fig : Hybrid Cloud

Cloud HRMS :
Cloud computing usually refers to a utility-based provisioning of all computational resources
over the Internet. Widely used analogies to explain cloud computing are electricity and water
supply systems. Like the Cloud, they provide centralized resources that are accessible for
everyone. Also, in the Cloud you only pay for what you have used. And finally, it is usually
consumed by those who have difficulties to produce necessary resources by themselves or just do
not want to do that. One of the main aspects to define cloud computing is the fact that it is still
evolving and taking its shape. The definitions proposed in the cloud computing community are
often focused on different perspectives and have different baselines.
Cloud technology has revolutionized the IT landscape. In Cloud HRMS no on-premise hardware
is required as all the informations of the HR processes are stored on cloud. Cloud HRMS has lot
of advantages when compared to on premise HRMS because it is very easy to access and also to
implement. HRMS on the cloud saves a business a lot of resources and money and it is the only
reason for gaining popularity. Moreover the installation is faster with less installation hassles and
updation of the system will be much easier. With a lot of SaaS providers focusing on Cloud
solutions, Cloud HRMS has become more user-friendly reducing the eort and time spent on
training the workforce to use these applications. With Cloud HRMS the business can choose to
pay based on factors like period of usage, number of users or the storage required. This makes
Cloud HRMS highly aordable and eective. And as far as business accounts are concerned,
Cloud subscriptions tend to be listed under operational expenditure which not only make a huge
budgetary dierence but also provides free up capital for other crucial business initiatives.

The main features of cloud HRMS are as follows :

i) Virtualization (abstracted infrastructure)
ii) A pay-per-use model
iii) On-demand access
iv) Elastic scalability
v) Resource Pooling
vi) Network access
vii) Usability
The details of these features are provided below

i) Virtualization (abstracted infrastructure):

Cloud HRMS have became possible through a new evolution of virtualization. Virtualization enables
resource sharing, dynamic utilization of infrastructure, isolation and security. In contrast to a
standard model where processing takes place on specific hardware defined in advance, applications
do not have any static computing place in a virtualized cloud environment. Resources are allocated
dynamically depending on the demand of the users. Thus, customers do not know the exact place and
the type of hardware their applications are running on. Cloud providers can only guarantee minimum
performance or storage capacity for the customer.

ii) A pay-per-use model:

This is the key characteristic of cloud HRMS computing economics. All resources in the Cloud are
available on a utility basis, which means that users are charged based on the quantity consumed by
them. This model allows entering the market with no upfront investments into own hardware
infrastructure.

iii) On-demand access:

On-demand access means that resources like CPU time or storage can be provisioned automatically
when needed without any extra management effort. This is an extra benefit for Cloud HRMS.

iv) Elastic scalability:

Elastic scaling signifies that computational resources which are used by the application, can be
dynamically scaled up or down. In other words, virtualized hardware resources can be resized easily
and rapidly on demand. It makes a utility model even more attractive, because consumers use only
what they really need.

v) Resource Pooling:
Computing resources of the provider are shared across multiple users. Different resources are pooled
in a diverse way so that they can be dynamically assigned and reassigned to serve consumers needs.

vi) Network access:

Everything in the Cloud is connected through the network. End-users access services through the
Internet, developers deploy and monitor applications in the same way, communication between
different services in the Cloud occurs through the network.

vii) Usability:
Normally cloud HRMS platforms provide a simple externally managed environment to hide
deployment and operating details from the user. Cloud computing systems provide APIs to interact
with the environment, which simplifies the development process. Many of these characteristics are
well known from service oriented architecture (SOA), distributed computing, peer-to-peer, etc.

Classifications of the Cloud:

There are two widely used cloud computing classifications. The first one describes four cloud types
depending on the deployment location. They are as follows.

i) Public Clouds :
Public or external clouds are traditional clouds where resources are dynamically provisioned via the
Internet by the off-site third-party providers. These resources are publically available to everyone.
Cloud consumers are charged depending on the quantity used. Examples are Microsoft Azure,
Google App Engine and Amazon Web Services.

ii) Private Clouds :

Private clouds usually refer to the emulation of a cloud computing environment on private
infrastructure. Since users still have to buy hardware and operating equipment, private clouds are
often criticized. Many companies try this type of cloud to verify their software locally before
deploying it to public cloud.

iii) Community Clouds :

Community clouds means a cloud environment established across several organizations. Such clouds
can be managed by the organizations or third-parties and installed either on- or off-premise.

iv) Hybrid Clouds :

This term refers to a composition of two or more clouds, including private clouds and public clouds.
This model can be used for different purposes. For example, archiving or replicating local data in the
public cloud, or dealing with peak loads when the on-premise system uses the public cloud capacity
only when needed.

Another widely used cloud ontology describes three cloud models depending on provided
Capabilities. These are as follows
i) Infrastructure as a Service (IaaS),
ii) Platform as a Service (PaaS) and
iii) Software as a Service (SaaS).

It is also called a cloud stack because the cloud models are typically built on top of each other. They
can exist independently or in combination with each other. These three infrastructures are described
below.

i) Infrastructure as a Service (IaaS):

The cloud infrastructure layer represents fundamental resources that compose the base for upper
layers. It is very similar to a regular virtual server hosting. IaaS is built directly on the hardware,
providing virtualized resources (e.g. storing and processing capacities) as a service. These resources
can be seperated, dynamically resized and assigned to consumers depending on their demand. In the
most common scenario, the consumers are Platform (PaaS) or Application (SaaS) layers that use
these resources to build new cloud software environments or applications. IaaS is sometimes
subdivided further into computational resources, data storage and communication. The examples of
public IaaS providers are Amazon Web Services and GoGrid.

ii) Platform as a Service (PaaS):

The platform layer provides a higher level software platform with extended services where other
systems can run. The layer is usually built on top of IaaS. It delivers a programming-language-level
environment with a set of language integrated APIs for implementing and deploying SaaS
applications, which makes PaaS very comfortable and clear for developers. In addition to that, the
platform layer usually has built-in scaling, load balancing and numerous services for communication,
authentication, caching etc. It further speeds up configuration, development and deployment

processes because programmers can focus more on the core logic. Microsoft Azure and Google App
Engine are examples of PaaS.

iii) Software as a Service (SaaS):

The services exposed in this layer represent alternatives to locally running applications and are
usually interesting for a wide market, compared to IaaS or PaaS. Services in this layer can be built on
top of PaaS or IaaS. They can also be composed from other services available on the Cloud. The
application layer provides interfaces for thin or thick clients like web browsers or smartphones.
Normally SaaS applications are accessed through web portals for some fee. Microsoft Office365 or
Gmail are examples of cloud services. The SaaS model has proven to be attractive to both providers
and consumers.

Advantages of Cloud HRMS:

i) No upfront investments
ii) On-demand capacity
iii) Focus on core application
iv) Potential for more sales
v) Easier customer maintenance
vi) Platform provided features
These are being explained below.

i) No upfront investments :
Companies usually have to create their own data centres to reliably support large software
systems. Hardware and equipment should be purchased and installed in advance to fulfill the
expected system load. Cloud HRMS eliminates most of these upfront investments. Companies
can simply host their applications on cloud providers data centres, paying only for consumed
resources. This HRMS module is especially attractive for startups or small organizations.

ii) On-demand capacity :

On-premise installations often struggle with different load patterns. An example of a predictable
pattern is an enterprise service that is under load only during working hours. A lack of capacity

can also result in a bad customer experience, while surplus hardware is inefficient for allocation.
Cloud HRMS provides much more flexible model of capacity. Here, users are able to consume
minimum required capacity at any time as a result the cloud HRMS model is also financially
attractive.

iii) Focus on core application :

The application stack for standard packaged software consist of many components beyond the
application itself, including networking storage, servers, operating system etc. Cloud HRMS
reduces this overhead, so companies can be more focused on their primary applications.

iv) Potential for more sales :

SaaS applications are more attractive to end-users compared to regular on-premise systems.
Moreover, cloud applications do not require any installation or regular updates. Another
advantage of SaaS applications is that they usually have a pay-for-use licensing model, unlike
on-premise commercial products. This Cloud HRMS model can potentially bring new customers
because of the fact that they face much lower financial commitments. Moreover, the Cloud
capacity opens new possibilities for high-performance computing (HPC) applications.

v) Easier customer maintenance :

Usually on-premise HRMS packages are distributed across many customers. Moreover the
vendors have to work with every customer personally, when it comes to installation assistance,
upgrading and handling issues. The vendors often do not have access to a customer environment,
which makes it even more difficult. Whereas, cloud HRMS platforms allow centralized access to
applications.

vi) Platform-provided features :

Cloud HRMS providers apply their knowledge and experience to build their platforms. They use
different techniques to address security, availability and performance issues. Cloud HRMS
providers try to make data replicas independent (including energy, connectivity and hardware
independence). So the application keeps running even in case of natural disaster.

Challenges of Cloud HRMS:

There are various challenges of Cloud HRMS technique. They are as follows
i) Security and privacy
ii) Availability
iii) Performance
iv) Vendor lock-in
v)Multi-tenancy
vi) Technological restrictions
vii) Licensing
The details are explained below

i) Security and privacy :

Security and privacy are the most discussed issues of cloud HRMS. Even though security is
improved through data centralization and security oriented components, there is still a concern
regarding the informations stored in the cloud because the users need to trust the cloud HRMS
providers. Moreover the risk of data leakage on the way to cloud bring new challenges regarding
secure transportation of datas.

ii) Availability:
Another major concern of cloud HRMS adoption is availability. Even though cloud HRMS
providers offer a high level of availability, outrages such as permanent and temporary occurs in
the cloud platform. Permanent outrage means that the cloud HRMS provider goes out of
business. Secondly, temporary outrage means service unavailability during a relatively short
period of time. The biggest cloud HRMS providers have experienced several problems for the
past several years.

iii) Performance :
While adopting cloud HRMS, there are also some performance implications. Cloud HRMS
platforms should guarantee a fair resource distribution across the applications running on the
same machine. Unlike on-premise system, they can keep their code and data in the same runtime

environment., cloud components communicate via the network. Performance can become a
serious problem especially when the number of request and amount of data increase.

iv) Vendor lock-in :

Cloud HRMS platforms have different implementations which imply different supported
programming languages, operating systems etc. Moreover, cloud platforms have poor
interoperability and integration possibilities. It is difficult to design applications that can be
easily plugged into several cloud platforms or deployed on-premise and in the cloud at the same
time.

v) Multi-tenancy :
On-premise HRMS packages can be customized in various ways as they are installed for each
customer separately. In SaaS applications, a single copy of software is shared by all users.
Customization of cloud systems is very limited and moreover, it requires an extra development
effort.

vi) Technological restrictions :

Cloud platforms have different technological restrictions that complicate the application
migration. Technological limitations might require a significant or a complete system
reimplementation. Legacy systems are usually subject to risk. Moving these systems to a cloud
environment is likely to be expensive due to a large number of required changes.

viii) Licensing :
A regular software licensing model for commercial software does not match cloud computing,
because licenses commonly restrict the computers on which the software can run. It brings
ambiguities when using supporting commercial software for SaaS applications. Confusing licensing
terms and conditions is the biggest obstacle, especially for large organizations considering the Cloud.
Even if a cloud-enabling HRMS system does not use any supporting software, the system itself might
not have a proper licensing model. Software vendors need to reconsider the way they charge for their
products in order to sell in the Cloud.

On-premise HRMS :
In on-premise HRMS, the HRMS is run and installed on computers on the premises of the
organization rather than from a remote facility. An in-house or a non-hosted solution leaves the
hardware and software under the management and control of the company itself. While there is
technical assistance available from the company that sold the software, the purchasing company
is still responsible for implementing, upgrading and troubleshooting the HRIS software.
Consequently, any hardware problems or security issues fall under their purview. The
information can be conveyed via the Internet or on a company intranet. In-house solutions are
typically more difficult for hackers to penetrate as there is usually no outside point of entry.
Advantages of an On-premise HRMS :
Any human resource management system (HRMS) is only as good as the information it contains
and the ability of the proper people to access that info. Recognizing this fact, many small to midsized companies are now moving away from a simple paper and file system to a computerized
one that allows more flexibility, enhanced accessibility and greater security while still remaining
easy to implement and use. The main advantages for keeping an HRMS system on-premise are
as follows :
i) Versatility
ii) Accessibility
iii) Security
iv) Compliance
v) Ease of implementation and use
The details of these have been discussed below.
i) Versatility:
While the first HRMS that a company obtains is generally sold as complete module, all HRISs
can be customized to fit the HR needs of a company as it grows. For example, on-boarding
activities, training modules and performance review functions can be incorporated into almost

any system. In addition, the scale of the system can also grow with the company and there is
essentially no limit to the number of employee records that can be efficiently stored.
ii) Accessibility:
The ability to access information from any location in the company without having to interact
with the HR staff is one of the most powerful features of an in-house HRIS. Managers can input
hiring, training and counseling info and leave the HR staff with just a gate keeping task.
Similarly, managers can access pay, training and review info about current employees. This ease
of access is doubly beneficial as the manger has the info immediately and the HR staff can
concentrate on other matters as it is not inundated with requests for information.
iii) Security:
These two issues revolve around the actual process of maintaining and accessing the hardware
and the information. In the first case, the physical location of the electronic files is under your
direct control. There is no need to be concerned with third party access as in a cloud-based
solution.
In a similar way, an IT team controls all access to the information. Several levels of permissions
can be granted so that managers, HR staff and employees can obtain the information that they
need directly from the server through any connected site. These connected sites can be made
available on the Internet or, for more security, only on the company intranet.
iv) Compliance:
Remembering and fulfilling the necessary legal requirements when dealing with hiring, firing
and other HR issues is a complicated and, sometimes, fruitless exercise. An HRIS can be
designed to serve as a gatekeeper on any of these processes. A manager or HR person can be
required to fulfill one step in the process before moving to the next. A well designed system can
facilitate any HR operation and guarantee that all corporate and governmental mandates are
observed.

v) Ease of Implementation and Use:

The preceding benefits are all important factors when considering an HRIS. Still, the system will
not be embraced by the employees if it is difficult to maintain or use. For this reason, a qualified
HRIS provider should be used to aid in the installation and training of the system.
Of course, there will be a learning curve with the new system and a lag in performance while the
old data is integrated with the new. This is the case with any new software and with any new
process for that matter.
A thorough grounding in the essentials of the system from the outset will ensure that all involved
are able to efficiently and easily use the system. In addition, the process should propagate itself
as further employees are trained on the system. Without knowledge of the old, legacy system, the
new employees will force any of the old guard to utilize this new and effective business tool.

Fig : Cloud Computing

CHAPTER 2 : LITERATURE REVIEW

The reviews of various related study conducted in this field of research is presented.
In 1992 a survey by Overman (1992) concluded that the potential advantages of HRMS are faster
information processing, greater information accuracy, improved planning and program
development, and enhanced employee communications. All of these benefits are types of
administrative efficiency. At the time of the study few researchers thought to explore possible
strategic advantages and even today while there are various studies which recognize that
strategic benefits may exist, they fail to explain how those benefits are realized within an
organization and they fail in attempting to measure whether those benefits have occurred.
In 2012, the 15th Ernst & Young Annual Global Information Security Survey found that 59% of
organizations already keep data in the cloud or are planning to do so. However, in HRMS terms,
the cloud carries drawbacks as well as advantages and sometimes keeping systems on-premises
can still be the right option. Moreover, the Ernst & Young survey noted that although the
majority of organizations are adopting clouds, 38% of respondents had taken no special measures
to reduce cloud security risks regarding application security, identity and access management,
authentication, encryption and data classification. The two strongest recommendations for
securing HR data in the cloud are the use of solid encryption techniques and close contract
management of cloud service providers.
Studies by Constellation Research suggest that by 2016, over 70% of organizations will be using
some sort of cloud system for human capital management. However, other corporate IT is not
experiencing a similar rate of change meaning that when other business systems ERP software,
CRM, even BPM are factored in the overall organizational IT is increasingly hybrid with
systems both on-premise and cloud. Perhaps the key question for the future is not only one of
deployment but also one of agility and capacity for system integration and collaboration.
Moreover, the authors state that cloud-based ERP can rapidly be implemented within the
enterprise unlike the traditional ERP which needs more effort and time. Cloud-based ERP
delivers a rapid deployment model that enables applications to grow quickly and match
increasing usage requirements. The user can easily scale up or scale down depending on its needs

(Verma 2012). On the contrary, Kim et al. 2009 mention in their paper, the inability for the
service providers to scale up their computing infrastructure as customer demands increase
beyond the original expectation. It is therefore important for the enterprises to first understand
the service providers capacity assumption and scale-out plans regarding the computing
infrastructure. Moreover, advantages like access to specialized and advanced technology, easy
integration with other cloud services, rapid updates and upgrades are more or less mentioned in
different papers to be evident within the cloud-based ERP systems.

Enterprises are always insecure regarding data that is stored in the cloud since they do not have
control over security, but depend upon the cloud-based service providers. This will make the
enterprise more vulnerable since cloud has become a honey pot for hackers. Also, a dishonest
employee of the service provider could potentially disrupt the computer system or data (Kim et
al. 2009). A hosted solution is typically prone to the same risks. On the contrary, on-premise
solutions tend to be more secure since the enterprises have more direct control over the systems.
Another risk issue is the performance which includes amongst others the communication
between the clients computer and cloud-based service provider, speed and reliability of the
network. The performance tend to decrease as the number of users and the amount of data
transferred to and from increases (kim et al. 2009). On the contrary to this statement, Rong et al.
2012 mention in their paper that the cloud model simplifies installation, operation and
maintenance of information system while increasing system reliability and efficiency.

Armbrust et al. described they vision of cloud computing, emphasizing elasticity as an important
economic benefit. Motahari-Nezhad et al.added that significantly reduced upfront commitments
and potentially reduced operational and maintenance costs are also important benefits of cloud
computing from business prospective. Chappel elaborated on different opportunities that cloud
computing brings to ISV, including the potential for more sales and easier customer upgrades.
Kim et al.made and extensive research on cloud computing issues, emphasizing security and
availability as the most challenging ones. Security and privacy seems to be one of the mostly
discussed obstacles for cloud computing adoption

We have found several papers that evaluated existing cloud implementations. Rimal et al. made a
comparative technical study of cloud providers and suggested taxonomy for identifying
similarities and differences among them. Later, Louridas discussed the migration of applications
to the Cloud, examining key features of cloud offerings based on the taxonomy from Li et al.
suggested a set of metrics related to application performance and cost in a cloud environment,
comparing cloud providers based on these metrics. The authors concluded that none of the cloud
providers is clearly superior, even though they observed diverse performance and cost across
different platforms.
Babar et al. shared experiences and observations regarding the migration of anexisting system to
a cloud environment, which also included some guidelines and suggestions.
Moreover, Williams and Sears (2008) as well as Campbell (2008) show that there are many
technologies that are created on cloud computing concept, such as Infrastructure as a Service
(IaaS), platform as a Service (PaaS), and Software as a Service (SaaS), it shown the effect of
using internet to create new opportunity to offer new kind of services to organization (Williams
and Sears, 2008) (Campbell, 2008). Additionally, cloud computing is the main concept of using
benefit of internet to create strong network infrastructure, in order to improve the way of delivery
data and application (Scanlon & Wieners, 1999).

While talking about HRMS as a Service, we can relate to Software as a Service (SaaS) platform,
and above all of these concept, let start with cloud computing concept, it play important role as a
key framework for these days online service. Cloud computing is the main key theoretical in our
research; it is style of computing that offer dynamically activities including effective resources as
a service over the internet (Gruman & Knorr, 2008). By doing this, users need not have
knowledge expertise or control skill over the technology infrastructure "in the cloud" that
supports them. Next, the concept of cloud computing incorporated with Software as a Service
(SaaS) trends that create theme of trust on the internet for fulfilling the computing needs of the
users (Campbell, 2008). Nowadays, most of providers turn themselves into cloud by providing
on-demand application as a new channel of service delivery, where application and data of
clients stored on external server and client can accessed through internet.

Cloud computing is the next step in information technology. Researchers studied on cloud
computing concept, which is about secure, reliable, financial sense, etc. As Information Week
analytics cloud computing reports that, most of organizations still have doubt on moving into
cloud, and they not yet decide to move their IT infrastructure into cloud computing platform
(InformationWeek report).

According to John McCarthy, in cloud computing, instead of buying their own computer
systems, companies, individuals, and even governments can share time on a common computing
infrastructure, which consists of interchangeable parts providing computation, data storage, and
communications. If one piece malfunctions or needs updating, programs and data automatically
move to others. Multilevel security prevents users from interfering with one another. This vast
system is cheaper to operate than many individual computers scattered among different
businesses and agencies, because both the hardware and the administrative staff can be utilized
much more efficiently.
In a Mobile Security Survey conducted by Information Week in 2013, over 45% of the
respondent organizations said that they had a data loss within the past 12 months. In the same
survey, over 36% of organizations felt that users forwarding corporate information to nonsupported cloud based storage services such as Dropbox or iCloud to save for reuse or sharing
purposes was their top concern.
According to PwCs 17th Annual Global CEO survey, only 34% of HR organizations are
prepared for the necessary transformative changes they need to make for the future. This survey
further reveals the pressure put on business leaders to transform their HR organizations and drive
business value. Making matters worse are cost constraints, demands to do more with fewer
resources and, align HR with the business. Most HR leaders lack reliable and innovative HRMS
tools to pursue transformative HR strategies that deliver value to their organization.
While many HR leaders have transformed their talent strategy by adopting talent management
systems, only 16% of HR departments currently have their core HRMS application in the cloud.
However, 45% of organizations will move their HRMS to the cloud within the next year, as per
PWC's 2013 HR technology survey.
To make good on the premise to align with the business, HR must modernize and transform. To
be an agent of change, HR needs to choose the right human resource management system in the

cloud to manage the entire employee lifecycle. Disparate, on-premise solutions where core HR
functions like payroll and benefits are processed in separate systems are not integrated with those
used for talent management, workforce optimization and training.
According to a journal entitled An Approach to Cloud Computing in HR Domain for Small
Enterprise Solution, the author concludes that employee is one of the most important assets for
every organization. No doubt HR Management is the guaranteed aspect to achieve competitive
advantage for the enterprise. This paper provided an open-source HR Management technology
framework that can lead to a new era and provides a management technique for efficient
solutions, workings, analysis, associating to Human Resource Management of any enterprise.
Lastly it can be said that the idea of the internet as we know it is quickly surpassing the simple
need to obtain information with ease through web applications, and is now evolving into a
nubers of systems which perform tasks, calculations, accurate searches, and many other complex
operations. Web Services are the perfect example of a solution to the need for a simplistic
system which allows many different technologies to merge and communicate with each other.
Being available to the end user over the internet, Web Services will keep increasing in popularity
due to their functionality but according to the author this popularity will also expose the threat to
the servers hosting them.

CHAPTER 3 : RESEARCH METHOD

Research is defined as a scientific and systematic search for obtaining information on a specific
topic. Infact it is an art of scientific investigation.

3.1 Research Problem

This study explores the preference of assorted modules of Human Resource Management System
(HRMS) in organizations. This study seeks to answer the question Which HRMS module is
mostly preferred in organizations among Cloud HRMS and On-Premise HRMS ?

3.2 Research Methodology

3.2.1 Research Objectives
The main objectives of my research are as follows :
i) To find out which module of HRMS is preferred by organizations.
ii) To find the most influenced factor for using Cloud HRMS.
iii) To find out the most influenced factor for using On-Premise HRMS.
iv) To find out if there is a significant difference between Cloud and On-premise HRMS on the
basis of cost.
(v) To find out if there is a significant difference between Cloud and On-premise HRMS on the
basis of data security.

3.2.2 Hypothesis of the study

Hypothesis is a mere assumption or some supposition to be proved or disproved. It may be
defined as a proposition or a set of proposition.
Based on the research objectives the following hypothesis were formed :

Ho: There is no significant difference between Cloud and On-premise HRMS on the basis of
cost.
Ha: There is a significant difference between Cloud and On-premise HRMS on the basis of cost.
And,
H1o: There is no significant difference between Cloud and On-premise HRMS on the basis of
data security.
H1a: There is a significant difference between Cloud and On-premise HRMS on the basis of
data security.

3.2.3 Research Design

This research was carried out using a descriptive quantitative study. A descriptive study is one
which is concerned with who, what, when, where and how much of the problem (Cooper
Schindler, 2011). In this type of study certain hypothesis are made which are then tested using
the data collected. This is a quantitative study in which a survey was conducted using a
structured questionnaire for collecting the data. Research design is needed because it facilitates
the smooth sailing of the various research operations.

3.2.4 Sampling Design

A sample design is a definite plan for obtaining a sample from a given population. Sample
design is determined before data are collected.
Sampling Unit :
A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit
may be a geographical one such as state, district, village etc. For my research sampling unit has
been taken from various areas in Gurgaon. My sampling unit consists of the companies working
in various verticles.

Sample Size :
This refers to the number of items to be selected from the population. This is a major problem
before a researcher because the size of the population should not be very large nor should not be
very small. It should be optimum. For my research a sample size of 35 is taken.
Sampling Method
The sampling technique used in this study was Judgemental and Snowball sampling. It is a nonprobability sampling technique. Judgemental sampling is a type of convenience sampling in
which a researcher selects sample members to conform to some criterions. In this study different
companies working in different verticles were selected. In snowball sampling technique sample
respondents are selected through referral networks and one sample member suggests the other
sample members.

3.2.5 Data Collection

The data collection starts after a research problem has been defined and research design has been
made. The researcher should keep in mind two types of data while deciding about the method of
data collection. These two types of data are as follows :
(i) Primary Data
(ii) Secondary Data
These are explained below
(i) Primary Data :
The primary data are those which are collected for 1st time and are original. Here data gathered
from structured questionnaires were used as a source for primary data, which includes in-depth
interview with the respondents.
This study was conducted using a structured questionnaire which had closed questions. The
questions also determined the demographic information of the respondents and their 35
organization with a view of getting information about the HR tasks they perform and the extent
to which those tasks are strategic. In all there are 8 questions in the questionnaire.

(ii) Secondary Data :

Secondary datas are those which have already been collected by someone else and have already
been passed through statistical process. The researcher should decide which sort of data he
would be using for his study and accordingly the researcher should select one or the other
method of data collection. For my research secondary datas were collected from :
Books
Journals
Newspapers
Company Database
Websites

Data Analysis Tools :

The researched data was analysed using Microsoft Excel. As the sample size is 35, Z-Test is
done for testing the hypothesis which is one of the important parametric test. Z-test is based on
the normal probability distribution and is used for determining the significance of several
statistical measures, particularly the mean. The calculated value of z is compared with its
probable value which is read from the table showing area under normal curve at a specified level
of significance for judging the significance.

3.3 Scope and Rationale of the study

The purpose of this study is to find out which HRMS module is mostly preferred in the
organizations. This research is conducted among various companies located in Gurgaon. During
my research I have gone through some problems because many of the companies refused to
provide the required informations. Nevertheless, these problems have been conquered and the
research have been completed.

CHAPTER 4 : FINDING AND ANALYSIS/RESULTS

The data, after been collected has to be processed and analysed. This is very much essential for a
scientific study and for ensuring that we have all relevant data for making analysis.
The datas obtained from the statistical analysis is presented in this chapter.
Total number of samples : 35
Number of companies using Cloud HRMS : 18
Number of companies using On-premise HRMS : 6
Number of companies using HRMS function manually : 11
20
18
16
14
12
10
Series1
8
6
4
2
0
Companies using Cloud
HRMS

Companies using OnPremise HRMS

Companies using Manual

HRMS

Fig : Bar diagram showing usage of various HRMS modules by companies

(i) Now, to find out the 1st objective i.e the module of the HRMS which is most preferred by the
organizations the statistical data has been found.
Number of companies that prefer Cloud HRMS : 33
Number of companies that prefer On-premise HRMS : 2

35
30
25
20
Series1

15
10
5
0
Companies preferring Cloud HRMS

Companies preferring On-premise

HRMS

Fig : Bar diagram showing companies preference on Cloud HRMS and On-premise HRMS

(a)
Total number of companies using On-Premise HRMS : 6
Total number of companies using On-premise HRMS but prefer to go On Cloud : 5
Total number of companies using On-premise HRMS but doesnot prefer to go On Cloud : 1

Series1

0
Companies using On-Premise HRMS Companies using On-Premise HRMS
but prefer Cloud HRMS
but don't prefer Cloud HRMS

Fig : Bar diagram of companies using On-premise HRMS but showing the tendency to shift
to Cloud.

(b)
Total number of companies using Manual HRMS : 11
Number of companies using Manual HRMS but preferring to go On Cloud : 10
Number of companies using Manual HRMS but preferring to go On-Premise : 1

12

10

6
Series1
4

0
Companies using Manual HRMS but
prefer Cloud HRMS

Companies using Manual HRMS but

don't prefer On-Premise HRMS

Fig : Bar diagram of companies using Manual HRMS but have a tendency to shift to Cloud

(ii) To find out the 2nd objective i.e the most influenced factor for using Cloud HRMS the
following analysis have been made.

Sl.
No.

Company Name
1 Federal Mogul
Saviance
2 Technologies
3 Bayer Crop Science
4 Distant Frontiers
5 TNS
6 Pepsico
7 Assotech

Cost
Reductio
n

Low
implementati
on &
investment
risk

HR
transaction
sl functions
made easy

Reliabilit
y

Flexibilit
y

Data
Securit
y

5
4
4
4
5
4

4
3
2
3
4
3

4
4
4
4
4
4

3
4
4
4
3
2

4
4
5
3
4
4

3
2
3
3
3
3

8 Estel
9 360 Realtors
10 Dhoot
RSP Design
11 Consultants
12 OSC
13 Mitsubishi Electric
Olympus Medical
14 System
15 Louis Vuitton
16 We Chat
17 Jeena & Company
18 F6 Finserve
Total
Mea
n

4
5
4

4
4
4

4
4
4

3
4
4

3
3
3

3
4
4

4
4
4

3
4
3

4
4
3

4
4
3

4
3
4

4
4
3

4
5
5
4
5
78

3
3
4
4
3
61

3
3
4
3
5
69

3
3
4
4
4
63

4
4
4
3
3
66

3
4
4
4
3
60

4.3

3.4

3.8

3.5

3.6

3.3

To find out the most influenced factor for using Cloud HRMS, the sum of the ratings obtained by
individual factors are calculated and the mean is obtained. The factor with the highest mean is
considered.
From the above analysis it is found that the most influenced factor for which organizations prefer
Cloud HRMS is Cost Reduction.
The above data is analysed graphically :

Parametres( For Cloud)

Ratings

Cost Reduction

78

Low implementation & investment risk

61

HR transactional functions made easy

69

Reliability

63

Flexibility

66

Data Security

60

Ratings
90
80
70
60
50
40
30
20
10
0

Ratings

Fig : Bar diagram of ratings (Cloud)

(iii) To find out the 3rd objective i.e the most influenced factor for using On-Premise HRMS, the
following analysis has been made:

Sl.
No.
1
2
3
4
5
6
Total
Mean

Companies
DTZ
Bacardi India
Asahi India
Glass
Du Pont
Edelman
CHEP

Low
implementation
Cost
& investment
Reduction risk
2
2
2
3
3
1
2
2
12
2

3
2
3
2
15
2.5

HR
transactional
functions
Data
made easy
Reliability Flexibility Security
3
4
3
4
4
3
3
4
4
3
4
4
22
3.7

2
4
3
3
19
3.2

3
4
4
3
20
3.3

5
4
5
5
27
4.5

To find out the most influenced factor for using On-Premise HRMS, the sum of the ratings
obtained by individual factors are calculated and the mean is obtained. The factor with the
highest mean is considered.
From the above analysis it is found that the most influenced factor for which organizations prefer
On-premise HRMS is Data Security.
The above data is analysed graphically :

Parametres( For On-premise)

Ratings

Cost Reduction

12

Low implementation & investment risk

15

HR transactional functions made easy

22

Reliability

19

Flexibility

20

Data Security

27

Ratings
30
25
20
15
10
5
Ratings

Fig : Bar diagram of ratings(On premise)

(iv) To find out the 4th objective i.e to find out if there is any significant difference between
Cloud and On-premise HRMS on the basis of cost. For this analysis the following hypothesis
have been made.
Ho: There is no significant difference between Cloud and On-premise HRMS on the basis of
cost.
Ha: There is a significant difference between Cloud and On-premise HRMS on the basis of cost.
The analysis have been carried out by using Z Test in Microsoft Excel and is shown below.

z-Test: Two Sample for Means

Mean
Known Variance
Observations
Hypothesized Mean Difference
Z
z Critical one-tail
P(Z<=z) two-tail
z Critical two-tail

Variable 1 (Cloud)
4.333333333
0.235294118
18
0
8.263091946

Variable 2(On-premise)
2
0.4
6

1.644853627
2.22
1.959963985

From the above table it is found that the calculated value of Z which is 8.26 is greater than the
critical value of Z which is 1.95. Therefore null hypothesis is rejected.
Hence it is found that there is a significant difference between Cloud and On-premise HRMS on
the basis of cost.

(v) To find out the 5th objective i.e to find out if there is any significant difference between Cloud
and On-premise HRMS on the basis of data security. For this analysis the following hypothesis
have been made.
H1o: There is no significant difference between Cloud and On-premise HRMS on the basis of
data security.
H1a: There is a significant difference between Cloud and On-premise HRMS on the basis of
data security.
The analysis have been carried out by using Z Test in Microsoft Excel and is shown below.

z-Test: Two Sample for Means

Variable 1(Cloud)
Mean
Known Variance
Observations
Hypothesized Mean Difference
Z
z Critical one-tail
P(Z<=z) two-tail
z Critical two-tail

Variable 2(On-premise)

3.333333333

4.5

0.352941

0.3

18

0
-4.421989752
1.644853627
9.7
1.959963985

From the above table it is found that the calculated value of Z which is -4.42 is less than the
critical value of Z which is 1.95 and doesnot lie in the acceptance zone. Therefore null
hypothesis is rejected.
Hence it is found that there is a significant difference between Cloud and On-premise HRMS on
the basis of data security.

CHAPTER5: CONCLUSIONS AND

RECOMMENDATIONS
This chapter includes the conclusion of the research and analysis of the preceding chapters.
This study is carried out in order to know which module of HRMS is preferred most by the
organizations. This study further showed why organizations prefer a particular module of
HRMS. It also tried to find out whether there is a significant difference between Cloud and Onpremise HRMS on the basis of cost and on the basis of data security.
Nevertheless, HRMS whether be On-Cloud or on On-premise both play a significant role in
reducing the labour cost, recruitment cost etc due to the fact that it is a computerized system. It
also helps the organizations in planning their human resource functions both qualitatively and
quantitatively.
Through this study it is found that On-Cloud HRMS is much preferred by organization and also
many organizations are planning to go for On-Cloud. This study also reflects the fact that
organizations that are using the On-premise HRMS are trying to shift to On- Cloud. The major
factor for this shift to Cloud is found to be Cost Reduction. It is also found that many
organizations are suffering from high costs incurred while using On-Premise HRMS.
Secondly, it is also found that Data Security is a major issue with On Cloud HRMS as all the
data are being managed by the third party. This is the main reason why many companies do not
want to go On-Cloud. Whereas an organization which is using On-premise HRMS there all the
datas are being managed inhouse i.e within the organization only, as a result no third party is
involved in this matter.

Thirdly, it was found that there is a significant difference between Cloud and On-premise HRMS
on the basis of cost.

Fourthly, it has been found that there is a significant difference between Cloud and On-premise
HRMS on the basis of data security.

There have been various studies conducted which proposed that HRMS can contribute for long
term competitive advantage through the integration of HR functions. It has also been found that
many organizations have started shifting their data to cloud and many of them have been
planning to do so. HRMS on the Cloud have evolved considerably since it was first introduced.
Cloud HRMS is now full of features and is self-contained more than evernot just in terms of
data storage systems we once knew them as. But it is also essential for every business to stop and
analyze the way HR functions and processes are run before taking a call to go On Cloud. All this
HRMS tools on the Cloud are what HR professionals can use on a daily basis to revolutionize the
way the world looks at HR.

Recommendations :
In this era of cloud computing, Cloud HRMS is very much important for the achievement of
goals and objectives for the company and it was seen in the study that both Cloud and Onpremise HRMS can play an important role in achieving it. Seeing the benefits of these two
HRMS modules it is suggested to all the companies to implement it in their organizations and not
just use it for administrative or operational purposes but also use it for strategic tasks to achieve
the goals and objectives of the company. Nevertheless, before implementing Cloud or Onpremise HRMS, an organization should see their own cost and benefits. With this keeping in
mind an organization should analyze which module of the HRMS is important for them. Then
accordingly they should go for implementation. HRMS should be used by the HR departments in
the companies to justify their importance. It is also recommended that to gain full benefits of
HRMS, the companies should use all the modules differentially adjusted for their organization.

References :
Books :
(i) Research Methodology, C.R. Kothari
(ii) Armstrong, M. Strategic Human Resource Management: A Guide to Action

Journals :
(i) Deloitte Review, Issue 11, 2012 Cloud Hits the Enterprise
(ii) HeriotWatt University Private Cloud Computing in a government enterprise
(iii) An Oracle Whitepaper, January 2014 Simplifying Cloud Integration

(iv) IJCSI International Journal of Computer Science Issues, Vol. 9, Issue 4, No 2, July 2012
Challenges Involved in Implementation of ERP on Demand Solution: Cloud Computing
(v) Proceedings of the 2012-13course on Advanced Resource Planning, W.J.H. van Groenendaal
(ed.)
Benefits and drawbacks of Cloud-Based versus traditional ERP Systems
by Jiaqi Duan, Parwiz Faker, Alexander Fesak, Tim Stuart
(vi) Above the Clouds: A Berkeley View of Cloud Computing- Michael Armburst
(vii) 15th Ernst & Young Annual Global Information Security Survey 2012.
(viii) The Impact of Human Resource Information Systems: An Exploratory Study in the Public
Sector by Nicholas Beadles, Christopher M. Lowery and Kim Johns.
(viii) Assimilation of the Cloud: Report on the Benefits and Challenges of Adopting Cloud
Technology by Lorraine Morgan, Lero, NUI Galway.
(ix) Cloud computing and its applications in the world of networking by Puja Dhar.
(x) 17th Annual Global CEO survey by PwC.
(xi) Cloud Collaboration: Peer-Production and the Engineering of the internet by Mike Graham.

BIBLIOGRAPHY :
(i) www.oracle.com
(ii) http://www.ibm.com/in/en/
(iii) http://www.eweek.com/
(iv) www.thecloudcomputing.org/2014/
(v) http://www.ieeebigdata.org/2014/
(vi) http://www.insight.bt.com/en/hot-topics/the-cloud

APPENDICES :
Questionnaire
1. Name of the organization.

HR manager name.

What is the strength of the staff in your organization?....................................................................................................

What type of HRMS system is there in your organization?

Cloud

On-premise

Are you satisfied with the existing HRMS system?

Yes

No

Out of the three systems, which system do you like the most ?

Cloud

If you are using cloud HRMS, then what are the benefits? (Give rating 1 to 5, 5 being highest)

On-premise

Manual

Did cloud reduced cost and price of HRMS system?

Did cloud based HRMS has low implementation and investment risk?

Did cloud based HRMS made your HR transactional functions easier or difficult?

How reliable is the cloud based HRMS?

Manual

How much flexible is the system?

How secure the data is?

If you are using on-premise HRMS, then what are the benefits? (Give rating 1 to 5, 5 being highest)

Did on-premise reduced cost and price of HRMS system?

Did on-premise based HRMS has low implementation and investment risk?

Did on-premise based HRMS made your HR transactional functions easier or difficult?

How reliable is the on-premise based HRMS?

How much flexible is the system?

How secure the data is?