How A SAAS Based Payroll Software Is Useful To Indian SMEs

Posted by Shy Lee on March 13th, 2019

SAAS stands out to be software as a service where we are talking about cloud-based software which is hosted in it. These type of software models are quite efficient in terms of usability as they feature a monthly subscription through which can one avail all their services. This licensing can be availed by the consumer and can be used for a time period where the user does not need a server to host the application. The user has an interface readily accessible over the internet which is flexible for accessing over the web browsers as well as mobile devices. These SAAS based models are secured in terms of accessing data and can only be accessed through credentials provided to the user side. From the latest trend study it is derived that in India there are around 45% of SMEs which are covering the industrial market and housing employees of 40%, that's quite a big sector when a highly populated country like India is being considered. These SMEs consists of many small and big startups which are in the growing phase. Their growing phase initially requires a tightly coupled budgeting system where investing only on required resources in an optimum manner defines the survival of the organization.

SAAS based HR and Payroll Software provide them with the platform which can significantly cover their requirement of managing their employee's expenses and payroll cycles in their expected budget. As the SAAS systems are subscription based they are efficiently priced keeping small ventures in mind. These SMEs can feasibly use the payroll software & pay according to the number of employees they are processing and the time for which they are subscribed to. This flexibility in budget payroll service tends to be more practical for a growing organization as they don't need to pay or invest a huge amount in buying an on-premise software or any server grade hardware. The company only has to pay according to their usage which inturns provide a high-grade service and security layers for data integrity. Saas payroll software is not limited to only these organization but some also empower big MNCs in managing all their human resources. Have a look at the key factors which will guide you why SMEs have a lot of preference in managing their payroll cycles with SAAS based cloud payroll software. 

Auto Updation

An on-premise stand-alone software which is desktop based requires to be constantly updated in a time period to make sure it's proper functioning. Without updating, it will be outdated and may cause a serious malfunction which is not feasible while carrying out critical tasks like payroll processing. A saas payroll software is being hosted on a centralized server which makes the SMEs not to worry regarding any kind of the updating process as the service providers are continuously keeping track that the users have an updated environment. The functionality is used through the internet which makes it accessible from the browser window or mobile devices which eradicates the usage of manual updating or any installation. The users are free from keeping track of manual updating process which allows the SMEs to focus on their organizational development and human resource management.

Less operability cost

The resources which were previously used to operate in a traditional or a stand-alone payroll software were more in numbers as the system required more of an input work which has made the operability cost more by having more human resources allocated to manage the same. With the introduction of cloud-based payroll software, the operability cost has been reduced drastically as a couple of HR can easily manage a huge number of employees payroll processing and other HR related activities. Most of the things are automated and compliance-friendly according to the location of the organization and service provided by the vendors which made SAAS solution very much feasible to implement and use. The company will have to invest less on their employee resource which they were previously appointing for processing manual task.

No Hardware Requirements

The online SAAS application is hosted on a cloud server through which accessing services are made easy and fast for all type of organizations. The user organizations do not have a requirement to purchase any kind of hardware resources to implement the payroll system as they will be accessing payroll and HR services over the internet utilizing the hardware of the cloud service providers. These cloud servers are equipped with the best hardware available which will preserve the integrity of your data through multi-level security established in the form of hardware and software firewall. It is not at all necessary to purchase hardware which helps the SMEs to reduce the total cost of implementing an HR software. This cost efficiency can lead a startup company to invest in the development scope which will benefit them a lot in exploring potential horizons.

Flexible Subscriptions

All the SaaS operated cloud-based payroll software will allow the user organization to avail the benefits of paying only for the processes which they are using and according to the numbers of their employees. This kind of flexible and highly optimized price structure helps the organization to justify their investment and carry out a high return on investment. A user company tends to be happier if served with these kinds of modular plans which have cost on the basis of modules and employee usage. Vendors provide freedom for opting out only the necessary features which an organization is having the need for and also paying only for it. The subscription dependency is also based on time for which it is availed. A service can differ its cost when availed for 3 months subscription and can be even cheaper when availed for a whole year.

On-Demand Scalability

The best part of having a cloud-based service is that it can deliver quick on-demand scalability in terms of storage and processing power with no time. If a company has an ongoing subscription and if a new project drives more employees in the staff of the organization then it can conveniently increase the space of the storage allocated to them on the cloud within few clicks. This on-demand scalability is very useful and allocated as soon as you pay for the extensive space or processing. Going from a single employee to thousands or maybe lakhs will hardly take a few moments. This feature ensures that you never run out of processing or accommodating your data & always delivering reliable seamless environment to process your employee's payroll and other HR functions.