Traditional outsourcing lacks the flexibility and agility today’s organizations require to obtain data-driven business intelligence that provides a clear, comprehensive view of their operations. Cloudsourcing is a newer, more nimble model that has emerged to fill the gap. This whitepaper, authored by industry-leading experts at OneSource Virtual, explores opportunities available through cloudsourcing and Software as a Service (SaaS).

1. Why Cloud-Sourcing is Better than
Outsourcing for HR and Finance
A OneSource Virtual White Paper
by Wesley Bryan

2. Once upon a time, traditional outsourcing provided solutions to real business problems faced by
human resources and finance departments. When faced with need to supplement staff, provide
expertise or counter the impact of shrinking budgets, companies looked to outsource providers for
help. In the modern era, however, this solution may fall short of its goal.
The needs of modern businesses have fundamentally changed. To remain competitive, contempo-
rary enterprises must be agile – poses the ability to respond to acquisitions, divestitures and downsiz-
ing strategies more effectively. They also depend on -- business intelligence – to make evidence-
based decisions. Leaders of HR and Finance organizations require real-time access to comprehen-
sive information that provides a insight into their department’s operations.
The old approach to outsourcing has simply not kept up with the rapidly evolving business
landscape. The traditional model, for the most part, has matured out -- unable to deliver the
flexibility, transparency and accelerated levels of efficiency companies now require just to stay in
the game.
New business demands supported the foundation of a new way for companies to behave. With
requirements for a more nimble approach, progressive businesses are turning from outsourcing to
cloud-sourcing – a newer model that has emerged to fill in the gaps created by the old style.
Cloud-sourcing enables companies to access complete solutions to run their businesses from the
public cloud utilizing a safe and secure Software as a Service (SaaS) model. It is traditional outsourc-
ing updated with today’s technology to provide customers with a unified, flexible view of their
information; a more cohesive platform and greater control.
This paper explores the difference between the traditional outsourcing and cloud-sourcing delivered
through SaaS, and what users can expect from each option.
Transitioning from the Traditional to a New Paradigm
In a traditional outsourcing model, the client company decides to off load a part or all of its
transactional functions to an outsourcing provider. The client uses one system; the outsourcer uses
another system to perform the same functions, like payroll.
Managing data in two systems to satisfy a business process like payroll processing is difficult. For
outsourcing to work, the files from the client’s system have to be transferred to and read by the
provider’s system. There’s a migration process where a transition team creates a point of integration
that allows the two systems to “talk” to each other. Ultimately, the client sends files; the outsourcer
reads and processes the files. The completed documentation is sent back to the client, and the
process begins again.
It’s like sending clothes to the dry cleaner. You drop them off, you don’t quite know what happens
while the clothes are away, and you pick up the clothes, hoping that everything was done correctly.
When business conditions and requirements change, and an outsourcing client company decides
to start processing payroll in-house, the company has to go through another lengthy migration
process just to get its own data back. Many times, it’s as painful moving off of an outsourcing
contract as it is migrating to it.

3. In contrast, a cloud-sourcing model combines cloud computing with outsourcing to keep everything
transparent and consistent. In this model, both client company and cloud-sourcing partner use the
same software platform (in our case, Workday), delivered as Software as a Service. Both the
Workday software and each client company’s secure data are centrally hosted in a cloud, and
accessible by both internal company personnel and the cloud-sourcing partner.
Because everyone is using a single software platform, there’s no need for lengthy migrations,
integrations or configurations to get two different systems to talk to each other. The cloudsourcer
processes transactions on the same software, in the same way, as the client company would.
If business needs change, companies don’t need a full migration just to get their data back. A few
security roles are changed – and the transition is done.
The cloudsourcer is not just a service provider. The firm behaves like a partner and becomes an
extension of the client’s in-house team. If an employee calls with a question regarding the benefits
or payroll results, the cloudsourcer is looking at the same screen, and can answer the question
quicker and more accurately. There’s one platform, whether the function is done within or outside
of the company, for a more streamlined operation, fewer errors and total visibility into the operation.
Cloud-sourcing is the smarter, less cumbersome choice for the way companies operate today.
Greater Visibility and Control
Cloud-sourcing eliminates one of the biggest outsourcing fears – namely, loss of control. In the
traditional outsourcing model, when a company sends files to the outsourcer for processing, those
transactions are not visible until after all the processing is completed. This “black hole” of processing
prevents the client company from catching and correcting a mistake in progress. No one can see
the error until the transactions are done and files are returned. With cloud-sourcing, business
transaction processing occurs in one system – there is no movement of data, no mystery, no “black
hole.” Both the cloudsourcer and the client can see all transactions as they occur and can validate
results immediately and simultaneously.
For example, let’s say that Company X is running a payroll with its outsourcing provider. Company
personnel send the file; the provider processes payroll. However, for some reason, one or two
employees get processed under an incorrect cost center. Because the client company has no
visibility into what’s happening on the outsourcer side, it can’t identify the error until after the payroll
is processed. Once discovered, the provider has to correct the cost center issue retroactively,
typically, for an additional transaction fee. Everything can be corrected but at additional costs due
to an inefficient model.
In the cloud-sourcing model, transparency is introduced to the process. Because both client and
cloudsourcer work on the same software, everything is visible to the client at every point of the
process. Therefore, using our earlier example where one or two employees were slated to be paid
under an incorrect cost center, this issue would be visible before the payroll process is completed.
The client company would see the discrepancy in a general ledger report, alert the provider and
the cost centers would be quickly corrected, eliminating the error before final processing occurs.
Improvements in visibility and partnership introduced in the cloud-sourcing model improve perfor-
mance and increase efficiency.

4. An additional benefit of cloud-sourcing is the ability to conduct real-time audits of processes. Clients
can see at a glance precisely who has logged in and touched the data; or run audit reports at any
time in the process. Business leaders always have real-time access to the data that’s being
managed on their behalf, any time they want it.
In short, cloud-sourcing returns granular control of the environment to the client. Everything is out in
the open.
One Solution, One Provider, One Unified View
Although outsourcing began as a way to simplify operations, the need to manage multiple providers
has become increasingly complex. Typical outsourcing engagements for HR involve specialists –one
provider for benefits, one for payroll and another one for finance – each utilizing a different system
to perform their function.
Not only does overseeing numerous individual providers require extra time that most resource-
constrained operations don’t have, but it also makes it nearly impossible to see the big picture. The
only way to see a unified view of everything that’s going across the organization is to manually
consolidate all data from disparate systems and providers with internal information. This process of
collecting and synthesizing information takes a long time which delays decision-making and
introduces more risk into the results. Furthermore, if the data changed after the consolidation was
begun, the process would have to start all over again.
Cloud-sourcing with Workday Matches Modern Technology with Modern Business Needs
Utilizing Workday’s software, companies gain a unified platform that handles every part of the
human resource and financial service matrix – payroll, benefits, tax, garnishments, COBRA and
expense checks, as well as accounts receivable and accounts payable. The client company owns
the software and can configure it to support its own workflow and business processes. All they need
is one piece of software and one cloud-sourcing partner. The complexity of managing several
specialty providers and integrating disparate systems is reduced to a single, unified platform and
one partner.
It’s important to note that “unified” is not the same as “integrated.” Integration brings disparate
systems together into a common solution. A unified platform means that the entire system was built
as one unit from the beginning. With a unified approach, there is no need for another layer of
middle ware to make things work together.
By breaking down the silos of traditional outsourcing, and managing all HR operations – internal and
external -- on a unified platform, HR, Financial and Business management gains real-time insight into
the entire operation – and can do so through any web-enabled device.

5. Improved Security and Streamlined Maintenance
Because Workday is delivered on a SaaS model, it is scalable to each customer’s needs: providing
the flexibility to ramp up for acquisitions or deconsolidate for divestitures, layoffs or other strategic
changes that impact personnel count. The application is hosted in a secure data center protected
by multiple layers of security. Company data is surrounded by internal barriers intended to reinforce
security and privacy.
Because Workday operates in a multi-tenant environment, system upgrades happen simultaneously,
not by individual client, so all companies are always operating on the most current version of the
software. Even in a hosted environment, where an outsourcer manages the hardware and software
for client companies, upgrades are completed one customer at a time, often resulting in long waits
and high costs. With Workday’s SaaS model, every client is using the same version of the software,
on the same code line. When it’s time for a patch or change, everyone’s software is upgraded at
the same time. This process eliminates lengthy downtimes, improves productivity and reduces cost.
Cloud-Sourcing – the Model for Today
It’s a simple fact: challenges that businesses experience with outsourcing today will never be fixed
by sticking with this same outsourcing methodology. The old model is outdated. Companies now
require more agility and want more control of their information – without having to invest in their own
data center to get it.
Through Workday, delivered in a cloud-sourcing model, OneSource Virtual brings our clients the
security, transparency and agility they just can’t get from traditional outsourcing. Instead of relying
on multiple vendors using disparate platforms for their HR and Finance management, all they need
is one unified platform delivered in a SaaS model and an experience partner to support their success.
More control…Fewer migration headaches…Consolidated partners and platforms to manage…The
era of cloud-sourcing is upon us – and companies of all sizes will soon start reaping the benefits.
About OneSource Virtual
OneSource Virtual is an exclusive
Workday partner supporting enter-
prises with a game-changing conver-
gence of technology and services
that was once out of reach.
OneSource Virtual is an established,
strategic partner dedicated to
delivering dynamic solutions to
improve our clients’ business through
SaaS-based, future-proof technology
and efficient processes. Growing and
global companies and business
leaders partner with OneSource to
best manage, analyze and grow their
business’ value. Visit us at
www.onesourcevirtual.com.
ONESOURCE VIRTUAL CONFIDENTIAL