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Cloud Computing and its effect on the HR industry

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The concept of ‘cloud computing’ is fast becoming the darling of the IT world. As one of the biggest changes to hit IT infrastructures since the invention of the personal computer, the rise of cloud-based computing is predicted to have an impact on organisations of all sizes.

In the next few years, whether a corporation, academic institution or charity, it is more than likely that your IT systems will be evolving to use a cloud-based service model.

The term ‘cloud computing’ is often referred to as ‘software or applications as a service’ and relates to the use of web based computing resources (software, hardware, storage) available to users on a subscription or ‘pay as you go’ basis.

Put simply, Cloud computing is a way of computing, via the Internet, that broadly shares computer resources instead of using software or storage on a local PC.

Organisations are becoming more interested in the effects of cloud based services as sharing valuable information with and between organisations is made easier and the deployment of new technology based services is made simpler. 

Undoubtedly, adopting this new approach will have a major impact on all areas of a business including HR managers.

For example, the primary advantage of Cloud Computing is that it creates a dynamic infrastructure that allows businesses to scale up or down, making growth a lot more flexible. Extra resources and capacity can be bought as and when it is needed, so that businesses can respond to demand rather than trying to predict when additional IT needs may be necessary. Subscriptions can be changed quickly and easily if a business suddenly expands or, as is perhaps more common at present, if it looks to implement cost-cutting measures.

Cloud computing is also opening up options in virtual working. More people are going to find that they can work from home just as easily as working in the office, as access to data will not rely on having to be in situ.

With this in mind managing directors may take the decision to move to ‘cloud’ as a means to reduce overheads either in regards to personnel or by offering alternate forms of working such as remote access cutting the need for large office space and associated costs.

This will inevitably affect HR managers. In particular the introduction of more home-based roles will force a step-change in traditional engagement methods with staff members.

There is also a possible threat to in-house IT staff, who may at first appear an easy target in any cost cutting exercise in favour of a technological system. However, while this is an easy approach to take, it is not necessarily the right one. IT managers will remain critical to ensuring that a company’s data is secure regardless of where it is hosted, and that a robust risk assessment is undertaken in order for a business to be fully prepared for every eventuality. Cloud providers must be able to deliver a reliable and safe service, and IT managers will be responsible for ensuring that any chosen supplier has back-up data centres ideally that can reduce security risk by storing data in multiple locations.

The job specification for IT staff is therefore likely to change dramatically. A focus with upon the strategic assurance of an organisation’s critical data will become just as important as providing day-day technical support and HR managers will play a key role in supporting this transition.

Over and above this there is an opportunity for a business to work much more closely with technology providers. These days providers are so much more than simply a supplier and can offer much more than equipment and products.

Managing of services alongside an in-house IT manager or alternatively by outsourcing this area of work all together is one option. This approach has a real appeal for IT staff who wish to develop their career and expertise within a large, national technology company. At the same time it enables non-tech businesses to reduce their staff costs in a positive way all the while ensuring the knowledge of their business and its IT systems are retained. HR managers will have a pivotal role in marking and communicating this culture change as and when it begins to take shape in an organisation.


Neil Stephenson is CEO of Onyx Group

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