Sting Operation to Uncover Price Disparity of HRM Software in India

At sumHR, our main focus is always on the customer. One factor that every client is touchy about is the pricing. Being a startup that serves other startups and SMEs, we know the kind of challenges such companies face, especially when it comes to costs. We wanted to highlight the fact how under-informed HR managers and business owners are spending more money on HR management systems than they actually should. So we called up one such company that offers a cloud-based HRMS solution. To keep it fair, we only listed out the services that sumHR offers, so as to ensure that the prices can be compared evenly. These were Human Resource Information System, Leave Management System, Attendance Management System, and MIS Reports.

Ridiculous Pricing

Actual screenshot of the pricing PDF sent to us.

After going through a web-based demo, we asked the representative of this Indian HRMS company to send us a quote for the above mentioned services. What we got completely astounded us. As you can see from the image, a one-time configuration and implementation fee for web-enabled suite for the four modules is Rs 1,20,000. The monthly fee (for up to 50 employees) is Rs 10,500 and Rs 140 extra for every employee after the 50 mark. That’s not all, there is also an additional offsite customization fee ¬– Rs 6,200 per person day. Now if you calculate the whole amount, it comes to around Rs 2,52,200 for an organization with 50 employees for the first year, and Rs 1,26,000 for every year after that.

Now compare that to sumHR’s pricing – about Rs 50 per employee per month! Yep, you read it correct. So the same 50-employee company will incur a monthly cost of Rs 2500, which translates to a yearly cost of Rs 30,000. Do the math. The sumHR option is a whopping 8.5 times cheaper. In fact, think about the things you can do with the money you would save in the first year:

– Buy a Nano along with the services of a driver. Use it to pick/drop employees.
– Free evening snacks for the staff (wars are not fought on empty stomachs).
– Get an extra entry-level resource.

This list can go on and on. What we want to convey is that there are several such companies who overcharge in this industry. We want you to take an informed decision before you go ahead and finalize your HRMS. If you are already using sumHR, you know you are lucky. 😉

Do share your experiences related to HRMS using the comments section below.

  • Gaurav Chandra
    Posted at 6:06 pm, June 13, 2012

    I like your pricing & your writing style but I did not like your approach. In my honest opinion you should not have wasted time of a rep if you are actually not serious. It would have been better that you just asked for the price before demo and then used that here. Also, it is upto the company to charge what they want for the service they are offerring. Hundreds of people have left zen desk for others but still there are new signups for zen desk as they have a good offerring. What if the company has more features than yours? And the proposal is always negotiable. There is maruti 800 and there is mercedes. Both are cars but prices are different. Why? Because of the offerring.

    Just my 2 cents though.

    • sumhr
      Posted at 7:05 pm, June 13, 2012

      Hi Gaurav – We’re happy you liked sumHR’s pricing and our writing style. Let us first clarify that this was part of a market research project we’re carrying out, to understand our competition better and develop a superior product. I’m sure you understand that it’s a mean cut-throat world out there, and we don’t see anything wrong in such practice. Besides, we’ve been careful to not expose any name here.

      In fact, we found this particular competitor’s product pretty ordinary, by our standards of features and user-experience. And, we feel it prudent that we help our prospective customers make an informed decision. 🙂

      To sum it up (no pun intended), using the analogy you’ve used in your comment, it was a “Maruti 800” being sold at the price of a “Mercedes”, to someone who doesn’t understand the nitty-gritties of automobiles.

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