Establishing Long-Term HR IT Stability with AMS and Business Services

In the following interview, René Schubert of management and IT consultancy MHP explains how companies can solve a classic dilemma in HR IT: ensuring stable and reliable day-to-day operations while freeing up resources for strategic transformation and securing the necessary expertise. The solution lies in Application Management Services (AMS) for the existing software landscape and Managed Services for HR.

As Senior Manager in the Managed Business Services division, René Schubert focuses on the future of human resources, supports global SAP HR rollouts, and implements HCM Managed Services for clients. He believes it is essential to view HR processes holistically and integratively throughout the entire employee lifecycle. For him, the reasons for HR outsourcing are clear: cost savings, resource shortages, and risk reduction. When it comes to software selection, SAP HCM and SAP SuccessFactors are highly recommended. As a central HR management platform, these solutions digitalize and automate all HR processes while providing a simple and intuitive user experience, comprehensive functionality, and rapid innovation. Employees benefit from increased efficiency and greater transparency in areas such as personnel administration, time management, and payroll.

1. What are you currently seeing in companies?

Many companies are in the midst of transformation. They aim to position themselves successfully for the long term and generate sustainable growth. As HR gains increasing strategic relevance, organizations are advancing the development of their organizational structures and establishing future-ready technological foundations – all while maintaining uninterrupted day-to-day operations. Traditional models are being replaced, and a strong employee experience is becoming a priority.

2. What specific challenges do companies face in the HR IT environment?

Historically grown systems and collaboration models often limit flexibility and freedom to act. Existing governance structures have rarely been adapted to organizational changes, causing them to reach their limits quickly during peak workloads or staffing shortages. This challenge is further exacerbated by the distribution of knowledge that has evolved over time: critical expertise is often concentrated among a few key individuals, creating significant risks if those employees become unavailable due to parental leave, a sabbatical, or illness. At the same time, many organizations struggle to implement ambitious HR transformation projects because a large share of available resources remains tied up in daily operations.

3. What are the key arguments in favor of HR outsourcing?

As part of their HR transformation journey, companies frequently face the challenge of driving strategic initiatives while simultaneously ensuring the stable operation of their HR IT landscape. Since the necessary personnel and specialist expertise are often unavailable internally, the combination of flexible Application Management Services and demand-driven HR outsourcing offers an effective way to relieve pressure on both HR IT and HR departments. 

By closely integrating transformation initiatives, application operations, and functional process support, seamless transitions are created between project phases and ongoing operations. New solutions can be operated reliably from day one, while functional and technical issues across the entire HR value chain are handled efficiently and without friction.

The key added value lies in a comprehensive end-to-end service approach. Processes, systems, and services work together seamlessly, enabling requirements to be implemented flexibly while ensuring sustained operational performance. At the same time, companies benefit from higher service quality, reduced complexity, and sustainably optimized operating costs. 

In addition, organizations gain direct access to deep expert knowledge and an operating model that scales according to business requirements. This allows peak workloads, transformation projects, or business expansions to be managed efficiently without the need for additional internal resources.

4. How can such an end-to-end service approach be successfully introduced, and what risks should be avoided?

Implementing an end-to-end service approach requires a carefully planned transformation of projects, operations, and business processes. Many companies face the challenge of consolidating established structures while ensuring business continuity throughout the transition. Key success factors include the structured replacement of existing service providers, the uninterrupted transfer of services to business departments, the continued development of governance and management models, and a systematic knowledge transfer from key personnel. At the same time, project outcomes – for example, from a parallel SAP SuccessFactors implementation – must be seamlessly transitioned into ongoing operations. 

The key to success lies in the close integration of Application Management Services and functional Managed Services. While AMS ensures the stability, operation, and continuous development of the system landscape, Managed Services guarantee the efficient and high-quality execution of HR processes. Only the interaction of both disciplines enables a seamless service model across the entire HR value chain. 

A common risk is viewing software implementation projects solely as technical migration initiatives. In such cases, organizational, functional, and cultural aspects are often overlooked, leaving significant potential untapped and preventing sustainable improvements. Successful transitions therefore regard the move from project implementation to ongoing operations not merely as an organizational handover, but as a deliberate transformation toward an integrated and sustainable service management model. This creates the foundation for stable processes, clear responsibilities, and the continuous evolution of systems and services.

5. What improvements can be achieved through the end-to-end service approach?

An end-to-end service approach reduces interfaces, establishes clear responsibilities, and thereby increases the stability and quality of HR services. Functional and technical requirements can be implemented more quickly because projects, operations, and process support work together seamlessly. At the same time, companies benefit from greater flexibility, improved transparency, and significantly enhanced cost efficiency in their operations.