In an environment where technological changes advance at an accelerated pace, many organizations have not yet taken the step towards complete digital transformation. According to the global report “the cost of not advancing”, prepared by Strada, 39% of companies worldwide continue to use local and outdated human resources systems. This happens in a context where migration to the cloud is no longer a strategic option, but a need to guarantee the continuity of the business, improve the employee’s experience and reinforce cybersecurity.

Through more than 1,200 interviews with employees and technological managers in companies of different sizes and sectors, the study reveals an alarming fact: platforms such as Microsoft Dynamics (20%) and SAP ECC (19%) remain the core of operations in almost 2 out of 5 companies, despite the fact that its support will end between 2025 and 2029.

Persistent barriers to an urgent need

Change resistance is not new, but excuses are repeated. The three main reasons why companies postpone migration are budgetary restrictions (42%), the complexity of integration with other systems (42%) and internal cultural resistance (33%).

“The transformation is no longer a future priority, it is a present necessity,” says Gautam Sukumar, Coo de Strada. “Inherited systems not only increase maintenance and increase vulnerability against cyber attacks, but also prevent advantage of key opportunities such as automation, artificial intelligence and predictive data analysis.”

Misalignment between leaders and employees

Another key finding of the report is the disconnection between the perceptions of the business leaders and the real experience of the users. While 92% of C-Suite executives believe that their current HR systems are effective, only 63% of first-line employees agree. Worse, just 14% believe that these systems promote their professional development.

This gap shows a structural problem: those responsible for deciding on technology often do not listen to those who use it daily. And this disconnection can translate into loss of talent, low motivation and inefficient processes.

Migration as a value catalyst

Companies that have opted for cloud solutions begin to notice tangible benefits. Before migrating, only 20% of respondents claimed to have fluid payroll operations; After change, that percentage rises to 55%. In addition, new cloud platforms allow integrating artificial intelligence capabilities, improving decision -making with real -time data and guaranteeing regulatory compliance in regulations such as the CSRD Directive on corporate sustainability.

“Companies no longer have the luxury of time,” warns Johan Bosschaerts, Chief Product & Technology Officer of Strada. “Every day that is delayed migration is a day more operating with tools that do not respond to current business demands. Cloud platforms offer scalability, security and strategic vision.”

Adapt or stay behind

At a time when cybersecurity threats grow and regulations harden, continue betting on on-premise systems can be expensive. The cloud, beyond a trend, is consolidating as the essential technological infrastructure to climb, automate and generate value in the coming years.