On-Premise

HRIS

Software

More suitable for businesses of 100+ employees and that may require customization.

You have control and ownership over the data of your company. If you have sensitive data that shouldn’t leave the company.

On-premise HR works well for companies that have poor internet connectivity or are located in remote locations with limited network connectivity.

Initial cost of investment is higher. Cost thereafter is minimal, making it more cost-effective over the long run.

The investment can be capitalized and have the value depreciated.

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Cloud

HRIS

Software

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Suitable for organizations with <100 employees. Also, favourable for organizations with no IT resources.

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It is not that easy to get your data and transfer to a new solution. Most providers use a data warehouse structure vs. a single tenant environment.

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A cloud-based solution requires good internet connectivity for it to be effective and efficient.

The entry cost is minimal but the cost of fees long run tend to be higher. This makes the system more expensive in the long run.

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Ability to capitalize on the investment is very limited.