Keep your SAP Payroll while you journey to the cloud

Good news – Customers can keep their SAP Payroll without reimplementation! All that time, effort and money customers have invested in customizations and processes can now remain.

In the keynote delivered by Mike Ettling on August 30th, 2016 Mike explained that a new model is now available enabling current customers to have their on-premise SAP HCM Payroll solution hosted and managed in the cloud in a new model known called SAP® SuccessFactors® Managed Payroll. Previously organisations were told that as part of their migration strategy to the cloud they would be required to re-implement and simplify (remove the customisations) within their SAP Payroll. This new model allows for a “lift & shift” of their solution from on-premise to the cloud without requiring a reimplementation and/or simplification. This is by far one of the most innovative ways of managing systems through a cost-effective pathway to the Cloud, whilst retaining the functional richness of the client’s existing systems. SAP’s 8,000+ customers are going to be very excited.

By migrating to the cloud, clients get to significantly decrease the cost of running payroll in-house, eliminate the need for costly HR IT infrastructure, and customers get to move from a CAPEX to an OPEX model. If you consider the vast majority of companies using the SAP platform have multinational operations, the pressure remains to gather data in real time for processing across multiple jurisdictions. Organisations need to consider the very real challenges of managing payroll and how cloud technology can address the evolving disconnects between data privacy, privacy, finance, HR, payroll and tax compliance.


What is the SAP SuccessFactors Managed Payroll Services offering?

The SAP SuccessFactors Managed Payroll offering is an SAP initiative that will be delivered by three selected SAP partners. This offering is for SAP HCM on-premise clients who wish to migrate to SuccessFactors Employee Central and have their existing on-premise payroll hosted and managed in the cloud. It is a subscription based offering, where SAP provides the licensing and software support and the partner provides the hosting, support and AMS services through the contract with SAP.


Why is this good news for existing SAP Clients?

  1. Clients can stretch their existing investment in their on-premise SAP solution. It does not require a re-implementation as it would with Employee Central Payroll.
  2. It’s lower risk than a complete re-implementation.
  3. It gives clients a way to move their on-premise SAP HCM into the cloud at a managed pace.
  4. They can move their whole SAP HCM installation and turn off functionality as they implement the equivalent SuccessFactors Employee Central functionality.
  5. Clients don’t have to manage the SAP/EC licensing, hosting, basis or functional support with different vendors, as it will all be under one SAP contract.
  6. Managed Payroll costs will replace their continued cost of maintenance, hosting, AMS and other related IT costs (integration, audits, analytics, etc.). The business case may be different per client.

Speak with us regarding your journey to the cloud.

Neil How
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Neil How

Neil ran his first SAP transformation programme in his early twenties. He spent the next 21 years working both client side and for various consultancies running numerous SAP programmes. After successfully completing over 15 full lifecycles he took a senior leadership/board position and his work moved onto creating the same success for others.

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