HR executives across Europe, the Middle East and Africa plan to invest more in HR technology and software in 2015.

According to an annual survey by global professional services company, Towers Watson, the HR industry are showing a willingness to embrace new technologies and, overwhelmingly, a satisfied response once they have. The survey shows that 90% of respondents expect to spend the same, or more, on HR tech this year, and 12% of those plan to increase investment by more than a fifth.

According to the 2015 HR Service Delivery and Technology Survey, the majority of HR teams (over a third) will replace their core HR management system. 

Tim Richard, EMEA leader of Towers Watson’s HR service delivery practice, says, “Upgrading and consolidating technology is becoming a major priority for HR. While in the past, companies have mostly invested in separate technology for talent, compensation and performance management, there has been a dramatic shift to investing in an overarching IT system with the functionality to take care of all of these areas. Many organisations are now looking at cloud-based solutions to replace traditional HR platforms.”

Mobile technologies are also becoming more popular with almost two-thirds of companies already using them, or planning to implement them in the next 12 to 18 months. In addition, 90% of companies in the regions surveyed either have in place, or are developing, an HR portal

However, nearly a third of companies continue to use manual or paper methods to manage bonuses and other variable pay and 39% of companies continuing to use paper-based systems to process new joiners.

Richard says, “While many HR organisations are embracing change and capitalising on the opportunities presented by new technologies, the extent to which legacy paper systems prevail is startling. I expect as more positive case studies of tech adoption are shared with peers, confidence will naturally grow and the use of paper systems will significantly decline during the next few years.”

Towers Watson’s 18th annual HR Service Delivery and Technology Survey was conducted in January and February 2015. Respondents include HR and HRIT executives at 798 organizations from 37 countries. Half of the respondents are global organisations.