Press note. In an environment where adaptability, agility and resilience are essential, many organizations worldwide continue to use local and outdated HR and ERP systems, and the cost of not acting in this regard continues to increase. A new Global Strada study, a specialist in payroll solutions, human capital and finance, reveals that practically 2 out of 5 companies continue to operate with on-premise platforms such as Microsoft Dynamics (20%) and SAP (19%), despite the imminent completion of these supports, which significantly increases the risk of interruptions in their service.
The end of the support of SAP and Microsoft Dynamics GP to ERP Central Component (ECC) is scheduled for December 2025 and 2029, respectively. In this context, the new Strada report entitled ‘The cost of not advancing: why ignoring the ERP in the cloud can harm your business’highlights the growing gap between business aspirations and operational reality. Despite the clear objectives of modernization, the adoption of AI, the reinforcement of cybersecurity and the improvement of the employee’s experience, many organizations remain stagnant. For most of them, abandoning inherited infrastructure is a process too complex or expensive to address it at this time.
“Transformation is no longer a future priority, it is a present necessity”says Gautam Sukumar, director of operations at Strada. «Organizations that delay migration not only face an increase in their costs, but also reduced support as local systems are eliminated. This leaves them exposed and without the capacity to take advantage of the opportunities that are presented, from the use of AI and data analysis to the improvement of the employee’s experience ”.
Although 36% of companies globally have prioritized efficiency and productivity, and 35% focuses on taking advantage of the value of technology, many still have difficulties in advance. Budget restrictions (42%), integration complexity (42%) and change resistance (33%) They are still significant barriers, especially in large organizations where inherited framed environments and silos in decision making slow down progress.
At the same time, there is a clear disconnection between the strategic direction and the first -line employees. While 92% of C-Suite leaders believe that their current HR systems are effective, only 63% of first-line employees agree, and just 14% feel that these systems support their professional development. This gap highlights a critical problem: those who make technological decisions are often misaligned with the needs of those who use the systems daily.
While many organizations continue to postpone the change, those that have opted for migration to the cloud are already reaping benefits. Before migrating to the cloud, only 20% of respondents reported fluid payroll operations; After migration, that figure amounted to 55%, which underlines the value of acting with decision and the real operational improvements that can be achieved.
HCM and ERP systems continue to strengthen. In part, this is the fact that organizations are increasingly aware of the need for integrated AI systems, real -time data visibility, scalable infrastructure, greater security and compliance with evolving regulations such as the Directive of Information on Corporate Sustainability (CSRD).
“Companies no longer have the luxury of time”Johan Bosschaerts, Strada Product and Technology Director points out. «Delaying migration means depending on systems that were not designed for current demands. Current cloud -based platforms provide a basis for greater resilience and innovation, allowing companies to take advantage of AI capabilities while reinforcing cybersecurity and facilitating regulatory compliance. Thus, IT teams can go from a reactive resolution of technical problems to proactive management, promoting business priorities and real advances ».
In a context in which companies face the end of the support of their inherited systems already a growing pressure to modernize, Cloud migration is presented as the entrance door to innovation. These platforms offer real -time information, integrated abilities, robust security protocols and compliance with constant change regulations. Act now not only mitigates operational risks, but it positions organizations to take advantage of future opportunities.
