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From Open Source HRMS To SaaS: Upgrade Your HRMS For Better Performance

  • Open Source HRMS
  • 12 min read
  • June 14, 2024
Open Source HRMS

Open Source HRMS

This one or that one! Always have confusion between 2 important things in life. Just like that people mostly become confused between Open Source HRMS or SaaS Based HRMS.

To handle heavy workloads, many small and large businesses are using various HR software. There are cloud-based SaaS platforms and open source HR management system options. Both have their advantages and disadvantages.

Free open source HRMS solutions have been popular because they are cost-effective. Today, HRM open source helps manage business data easily. However it has some limitations and that is shown in this blog. So, many businesses are now switching to SaaS-based HRMS for better performance and features.

We’ll guide you on choosing between open-source and SaaS platforms. This blog will explain why upgrading from open-source to SaaS-based HRMS could be the best choice for your business.

What is HRMS?

What is HRMS?

First of all, before going in deep will understand what the HRMS management system is A Human Resource Management System is a suite of different tools and software applications used to manage human resources related processes.

An HRMS Indian software combines a number of systems and processes to ensure the easy management of a business’s employees and data.

Also, See: Top 5 Features To Consider For Selecting HRMS Software Companies


75% of companies see a reduction in HR errors with HRMS! – You can as well!

Experience improved data security & increase in productivity with cloud-based HRMS.

Check the above stats and discover how Superworks can transform your business operations!

Types of Human Resource Management

Types of Human Resource Management

Most of the Human resource practices can be easily done with the use of technology. However, there are several types of HRMS tools available in the market. Check the main types of HRMS to understand the difference between them.

-Open Source HRMS

Open source HR Software is software systems whose source code is available for anyone to inspect, modify, and enhance. As per the company’s needs, they can change the code and make the core HRMS for their company.

Open source HR Software

They are often favored by organizations looking to minimize costs and customize the system according to their specific needs.

Examples of open-source HRMS include Odoo, OrangeHRM, and Sentrifugo.

-SaaS-Based HRMS

SaaS-based HRMS with payroll solutions are cloud-based systems provided by a third-party HRMS company on a subscription basis.

SaaS-Based HRMS

These systems are hosted in the cloud and can be accessed via the Internet, offering scalability, regular updates, and robust support. Examples like Superworks.

Limitations Of Open Source HRMS That Make You To Believe In SaaS

SaaS-Based HRMS Is The Best

1. Cost Analysis

-Initial Costs

While HRMS software open source, it might seem appealing due to zero licensing costs. However, there are significant initial costs associated with setting up the system. These include hardware, infrastructure, and technical expertise required to customize and deploy the software.

In contrast, SaaS-based HRMS like Superworks come with minimal initial costs since they are hosted on the cloud and don’t require extensive hardware or setup expenses.

-Hidden Costs of Open Source

Even the best open source HRMS solutions often come with hidden costs. These can include expenses for continuous maintenance, updates, security patches, and potential downtime.

Customization and integration with other systems may also require hiring specialized developers, adding to the overall cost. So, this is not the benefit of having the open source HR software.

-Value for Money with SaaS

SaaS-based HRMS payroll software in India offers better value for money. With a predictable subscription fee, you get access to a comprehensive set of features, regular updates, security enhancements, and dedicated support.

The charges of paid HRMS software are often lower compared to open source systems when you factor in all the hidden and ongoing costs.

2. Implementation and Maintenance

– Ease of Implementation

Implementing an open source or free HR management software online can be complex and time-consuming. This requires significant technical expertise. On the other hand, SaaS, cloud-based HRMS like Superworks offer easy and quick implementation with minimal disruption to your business operations.

The provider handles all technical aspects, allowing you to focus on your core HR functions.

– Maintenance and Support

Free and source code HRMS solutions require in-house or third-party maintenance, which can be costly and challenging.

SaaS-based HRMS providers offer continuous maintenance, ensuring the system is always up-to-date and functioning optimally. They also provide continuous support to address any issues promptly.

– Scalability and Updates

HRMS SaaS software is inherently scalable, allowing you to easily add new users and features as your business grows.

Open source HR software systems often require significant effort to scale and may not keep up with the latest technological advancements. SaaS HRMS providers, regularly update their software and add new features. They ensure you always have access to the latest features and security enhancements.

3. Security and Compliance

– Security Measures

Open source Human resource management may lack comprehensive security features, making your data vulnerable to breaches.

The SaaS software providers, like Superworks, prioritize security with advanced measures such as encryption, multi-factor authentication, and regular security audits. This ensures your sensitive HR data is well-protected.

– Compliance

Keeping up with regulatory changes and ensuring compliance can be challenging with an open source HR management system.

SaaS-based solutions are designed to comply with various regulatory standards, and providers often offer features that help businesses stay compliant.

4. Features and Customization

– Feature Set

SaaS-based HRMS solutions come with different features out-of-the-box, including employee self-service portal, payroll processing, employee management, employee performance management, and more.

Open-source systems may require significant customization to match these features, which can be time-consuming and costly.

– Customization Needs

While open-source HR management software offers extensive customization options, it often requires specialized skills.

SaaS-based HRMS tools solutions like Superworks provide customizable modules that can be easily tailored to meet your specific business needs without requiring deep technical expertise.

5. User Experience and Accessibility

– User Interface and Experience

HRMS software solutions are designed with user experience in mind, offering intuitive interfaces and seamless navigation.

Open-source systems may not prioritize UI/UX, resulting in a steeper learning curve for users.

– Accessibility and Mobility

SaaS-based, cloud HRMS can be accessed from anywhere with an internet connection, providing flexibility and convenience.

Open source HR management systems may not offer the same level of accessibility and often require additional configurations for remote access.

Case Studies Of The Open Source Software & SaaS

Many businesses have successfully transitioned from open source HRMS to SaaS-based solutions like Superworks. It experiences significant improvements in efficiency, cost savings, and user satisfaction.

For instance, a mid-sized tech company switched to Superworks,

It is reported a 30% reduction in HR processing time and a 50% increase in employee engagement !

Choose Wisely -Open Source HR Software or SaaS HRMS?

SaaS-based HRMS offers better value for money, ease of implementation, and lower total cost of ownership. Automated Open Source HRMS software, such as Superworks provides robust security measures, and regular updates, and ensures compliance with regulatory standards. The rich feature set, scalability, and superior user experience make Superworks a more practical choice for modern businesses.

Final Recommendation

While open source HRMS solutions have their pros, the advantages of SaaS-based HRMS- Super HRMS are undeniable. For businesses seeking a reliable, scalable, and cost-effective solution, upgrading to a SaaS-based HRMS like Superworks is the best decision.


What are the main differences between open source HRMS and SaaS-based HRMS?

Open source system offers customizable solutions with no licensing fees but requires significant maintenance and technical expertise. SaaS-based HRMS, like Superworks, provides comprehensive features, ease of use, regular updates, and dedicated support on a subscription basis.

Why is SaaS-based HRMS considered secure than open source HRMS?

SaaS-based HRMS providers implement advanced security measures, including encryption, multi-factor authentication, and regular security audits, ensuring higher data protection compared to open-source HR software.

Can SaaS-based HRMS be customized to meet specific business needs?

Yes, SaaS-based HRMS like Superworks offers configurable modules easily tailored to fit your specific business requirements.

How do the costs of open source HRMS and SaaS-based HRMS compare?

While open source HR software may have lower upfront costs, it often comes with hidden expenses for maintenance, customization, and support. SaaS-based HR management offers better value with predictable subscription fees covering all necessary services and features.

What kind of support can I expect from a SaaS-based HRMS provider?

SaaS-based HRMS providers offer regular support, regular system maintenance, and automatic updates, ensuring your HRMS is always running smoothly and efficiently.


Alpesh Vaghasiya

The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.

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