Philippines - Even if operational budgets have been shrunk by the languishing economy, companies should continue investing in HR technology to maximise their profit margins.

A recent survey of 270 Asia-Pacific companies by research firm CedarCrestone and Oracle Corp showed that firms which use human capital management (HCM) software for their HR tasks were more profitable compared to companies that did not incorporate such technology. Hence, while the financial crisis may slash most corporate operational budgets, it will not stop companies from buying IT infrastructure, Tim Darton, Oracle Asia-Pacific HCM general manager, told Philippines media, Daily Inquirer.

Instead, companies will be more selective in purchasing HR technology, Darton explained, as they use the economic crunch "to align their operations by understanding their people better to fully utilise their capacity".

Besides improving on the basic operational processes, this IT capability alignment would also help HR roll out effective learning and performance management systems. Darton said, "Companies want to keep their best talents and find how to maximise other employees as well. This way, they can weather the financial crisis."

With such IT infrastructure in place, HR professionals would be able to complete administrative tasks more efficiently, which gives them more time for strategic HR planning, said the survey.

According to the survey, sectors which could benefit from HCM solutions include financial services, IT, communications, transport and public utilities as they require help in the recruitment, compensation and performance management functions.