Schumacher Group’s CIO explains the decision to decentralise administration and leverage on demand HR services.
The term ‘Cloud Computing’ may sound like a definition of using a laptop PC on a aeroplane, but it’s fast becoming one of the key IT trends. Essentially the use of IT applications and services over the internet, rather than software installed onto a PC, Cloud Computing is becoming a battleground in several business sectors, including accounting, data storage, and of course, HR.
At the recently held Cloud Computing World conference in London, Douglas Menefee, CIO at emergency healthcare management company, Schumacher Group, revealed the firm had deployed all its HR and payroll systems into the Cloud.
The decision to leave behind traditional HR software and switch to services from the likes of Workday, was made on the business needs of Schumacher. “I don’t see us being in the cloud for the sake of being in the cloud,” Menefee explained in his keynote. Business continuity amongst its hospitals and staff is obviously critical, and with the company headquartered in the hurricane prone state of Louisiana, a cloud-based solution provides that resilience.
Menefee revealed the transition to cloud services was achieved fairly rapidly:
• Human Capital Management – 5 months
• Benefits – 3 months
• Payroll – 3 months
• Integrations – 1-6 weeks
The shift has proved so successful for Schumacher, that it’s currently evaluating the potential for taking its financial department into the Cloud by 2011.
Despite its advantages, the transition to the cloud was far from painless. Menefee revealed IT staff turnover at the outset in 2005 stood at a staggering 87%. At that point, 5% of resources were on the cloud. By the end of 2009, Schumacher aims to achieve 75%, whilst IT staff turnover has reduced to around 1%.
