The South African payroll administration industry has matured. With the offer of more technology, access to skills sets and improved levels of control, decision makers in business have several options available to them in terms of how they want to manage mission critical business disciplines including payroll.
With continued economic pressure affecting markets globally, businesses of all sizes and focus are compelled to seek out ways to manage systems strategically. This means controlling infrastructure as an asset that helps to keep the business competitive and operational at the lowest cost possible.
"There are pros and cons to each model. The option to outsource, for example, does make sense within specific scenarios. It is a model that is usually based on fixed terms and the onus of responsibility for the functioning of infrastructure and its successful operation lies with the party contracted to provide the outsourcing services. However, this means that management will have to relinquish a degree of control to the outsourced party - so that the service provider is able to assure the client of guaranteed uptime and reliable maintenance,' says Teryl Schroenn, CEO of Accsys.
The company is a member of the Business Connexion Group (BCX) and a national supplier of people management software and hardware solutions within the HR, payroll and time and attendance space.
Within a tight economic environment, the debate over whether to outsource or insource core disciplines is particularly relevant.
Schroenn agrees with the advice that it is best to balance short term gains with long-term efficiencies.
"There are several advantages to both outsourcing and insourcing. As far as outsourcing is concerned, there is access to specialised skills, cost reduction and support - as well as the option to focus and concentrate on key strengths to increase competitive qualities. This service model will ensure that software is up to date and there is no need to retrain on statutory changes,' she says.
Additionally, the advent of cloud solutions represents a new dimension to outsourcing - management have access to information remotely and continue to outsource the operational side of payroll, while keeping HR software management inhouse.
Accsys is of the view that decision makers need to evaluate the environment and core requirements of the business prior to the adoption of any service model.
"This process is where consulting with service providers who are able to offer decision support around the best methodology can add real value.' Schroenn adds.
? The South African payroll administration industry has matured/>
? Business are forced to control infrastructure as an asset to ensure the business remains competitive and operational at the lowest cost possible/>
? Decision makers must consider the direction of the business, use of assets to build and sustain revenue streams/>
? There are various models that deal with infrastructure and system management. There are pros and cons to each model/>
? Within a tight economic environment, the debate over whether to outsource or insource core disciplines is particularly relevant./>
? It is best to balance short term gains with long-term efficiencies./>
? The advent of Cloud solutions is also adding a new dimension to Outsourcing/>
? It is critical for any business to have the necessary infrastructure and governance in place prior to the integration of any solution./>
What do you think?
In which way could businesses successfully integrate a sustainable business model that includes payroll administration?