SAP HCM End of Life 2027: What Are Your Payroll Options for SuccessFactors Migration?

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With SAP’s on-premise HCM solution including payroll reaching end-of-life in 2027, we have had more SAP clients asking what their options for payroll and ensuring their employees will be paid correctly from 2027 onwards. While extended support will be available until 2030 (subject to SAP’s eligibility criteria, such as being on a supported Enhancement Package), most organisations are moving to SAP’s cloud based SuccessFactors well before this deadline.

What are my options for processing payroll if I move to SuccessFactors?​

This shift to cloud is prompting many businesses to reconsider how they will manage payroll going forward — a critical yet complex function, especially when factoring in elements like time attendance and payroll calculations.

There are 2 common options for processing payroll once you migrate to SuccessFactors:

• Move to SAP SuccessFactors Employee Central Payroll (ECP):
  This approach involves connecting ECP to SuccessFactors using internal
  resources. ECP is a robust solution, but it comes with relatively high
  implementation and maintenance costs. As such, it’s generally more
  cost-effective for organisations with large employee headcounts in a single
  location (e.g. 10,000+ staff). For smaller or more dispersed employee groups —
  often referred to as the ‘long tail’ — this can be an overly expensive route.

• Partnering with a payroll outsourcing provider: A common alternative to using SAP ECP particularly if your employee headcount is less than 5,000 is to engage a payroll outsourcing provider to integrate their payroll processing with your SuccessFactors. This approach is very common in Asia & the Middle East as both of these regions have a highly fragmented payroll landscape — with varying regulations across locations and the existence of ‘long tail’ employee populations (e.g., low numbers of employees across high numbers of locations) is common. Engaging a payroll outsourcing provider who can integrate with SuccessFactors in these circumstance offers a faster, cost efficient, more scalable way to manage payroll, especially when the provider already has established local integrations in place.

Beyond the typical advantages of payroll outsourcing, partnering with a payroll service provider that supports SAP SuccessFactors allows HR teams to tap into the provider’s existing integration expertise and technology. This approach also simplifies multi-country payroll management by offering a unified solution capable of covering diverse geographies through one centralised system.

How Do Payroll Providers Integrate With SuccessFactors?​

Clients using SuccessFactors will typically use one of the following options for integrating SuccessFactors with their payroll:

• Application Programming Interfaces (API)-Based Payroll Integration – An experienced payroll service provider can integrate its payroll platform directly with SAP SuccessFactors through secure APIs. Using OData, RESTful, or SOAP APIs, payroll-relevant employee data can be automatically retrieved and synchronized between the systems. This approach reduces manual effort, improves data accuracy and security, and ensures timely processing of employee changes such as new hires, transfers, compensation updates, and terminations. Below are the three API Methods:
  • OData (Open Data Protocol): OData allows HCM and payroll systems to exchange employee data in a standardised way. It can retrieve specific information efficiently and support scheduled or near real-time data synchronisation.
  • RESTful APIs: Many modern HCM and payroll systems provide RESTful APIs that allow for real-time data exchange between the two systems. APIs enable more secure and efficient data transfer compared to file-based integration but require more technical knowledge and can take longer to setup.
  • SOAP APIs: Some older systems might still use SOAP (Simple Object Access Protocol) APIs for integration. While less common nowadays, they can still be utilised for specific scenarios.

• File-Based Integration –
  • Flat Files: much less requested than APIs now, flat files contain data in a structured format with fixed-length fields or delimiters. They are suitable for bulk data transfers between systems.
  • CSV/Excel Files: This is a basic and widely used method where data is exported from one system as a CSV or Excel file and then imported into the other system. This method is relatively simple and can work for small to medium-sized organisations with less frequent data transfers.

• Middleware Integration – Often enterprise clients will have an existing integration software or iPaaS solution that they use for all their integrations. (i.e. MuleSoft, Boomi, Microsoft, etc.) Middleware solutions, such as Enterprise Service Bus (ESB) or Integration Platform as a Service (iPaaS), can act as intermediaries between the HCM and payroll systems. These platforms provide pre-built connectors or custom integration workflows to enable seamless data transfer between the two systems.

Put simply, whenever a SuccessFactors user updates information that affects payroll — like a salary increase, bonus, or other variable — the updated data is automatically sent to the payroll provider’s system before the payroll is processed.

Choosing a Payroll Services Company​

It’s important to do your homework and ensure your payroll plans and model is future-proof when choosing a payroll provider. In addition to your usual due diligence questions, payroll specific questions you should ask include:

• SuccessFactors integration – Can the payroll provider integrate with SuccessFactors? Are they an SAP certified partner?
• Regional footprint – What is the payroll outsourcing provider’s regional footprint? Are they able to support you in most of the countries in which you have employees?
• In-country support – If my HR team and employees have questions, who will be there to answer them? Is the support in-country or is the support going to be offshored to cheaper locations, e.g., India, Dubai or the Philippines? Will I have a dedicated account manager?
• Hosting and security – Will the payroll provider pass my information security team’s audit? How secure is the data? Is it GDPR compliant? Does the provider have the security accreditation, e.g., ISO27001?

Learn more about why you might want to integrate your HCM and other HR Systems with Payroll: HCM Payroll Integration Guide

Interested in integrating SuccessFactors with payroll? ​

Links International specialises in simplifying HR operations by integrating SAP-certified cloud and on-premise solutions with fully in-country managed payroll, leave, and benefits services across Asia & the Middle East. As one of the region’s top payroll outsourcing providers, we deliver 100% in-country service, seamless integrations, and intuitive payroll technology. Our multi-country payroll platform, Links One, is designed specifically for businesses operating across Asia & the Middle East. It supports organisations undergoing digital transformation by connecting a single payroll system with SAP SuccessFactors — helping you future-proof your payroll operations.

Get in touch with our team today to learn how you can seamlessly prepare your HR and payroll through a seamless transition.