The Power of Custom Development in Human Capital Management: Lessons from the Trenches

Human capital management (HCM) providers play a critical role in helping businesses navigate complex workforce needs. These companies develop platforms to streamline and automate HR functions for a diverse range of clients, from startups and small businesses to large multinational corporations. Their customers rely on them for tools to manage payroll, benefits, workforce scheduling, and regulatory compliance—all while enhancing employee engagement.

For HCM providers, the stakes are high. Their clients expect seamless, scalable, and secure platforms that can integrate with an expanding ecosystem of third-party tools and adapt to the complexities of managing diverse workforces. Yet, achieving these goals often means addressing the limitations of legacy systems, navigating complex integrations, and delivering solutions under tight timelines.

Custom development has become a key driver of success in the professional services space, offering tailored solutions to meet technical and business challenges while creating a foundation for future growth. Through recent partnerships with several leading HCM providers, we’ve seen firsthand how thoughtful, strategic approaches to software development can transform operations and create lasting value.

One large HCM provider recently sought to modernize a legacy platform central to its operations. Built on outdated technology, the platform had become a roadblock for innovation. It lacked the flexibility to meet evolving client needs and was weighed down by dependencies between teams, making deployments slow and cumbersome.

The solution required a comprehensive overhaul. By modernizing the tech stack with tools like Angular and Java, introducing single sign-on (SSO) for authentication, and implementing dynamic, database-driven configurations, the platform became far more efficient. These updates eliminated bottlenecks, empowered development teams to deploy independently, and ensured scalability for future projects.

The lesson? Modernization isn’t just about replacing old technology—it’s about creating maintainable, adaptable systems that can evolve with your business.

In today’s HCM landscape, integration is king. The ability to connect seamlessly with third-party tools—such as payroll systems, benefits management platforms, and tax solutions—can make or break an HCM platform’s value proposition.

Another HCM provider we worked with needed to expand its integration capabilities while addressing architectural challenges that were limiting scalability. By developing robust APIs (including GraphQL) and transitioning to an event-driven architecture powered by cloud tools like Azure Service Bus, the platform achieved the flexibility it needed to thrive in a fragmented ecosystem.

The result? Not only did the platform integrate smoothly with key third-party systems, but it also scaled efficiently to support high demand use cases, such as annual benefits enrollment.

Custom development often involves navigating complex challenges beyond just writing code. One HCM provider’s experience highlights the critical role of technical leadership in ensuring project success.

The company’s offshore development team faced significant roadblocks while working on high-priority features. Ambiguous requirements, poorly documented legacy systems, and rigid processes were compounded by aggressive timelines and internal politics. SPR’s technical leader stepped in to guide the team, providing a clear roadmap, fostering collaboration, and adapting processes to meet the project’s goals.

This leadership-driven approach turned the tide, enabling the team to deliver on time and setting the stage for improved workflows in the future.

The broader lesson? When navigating high-stakes projects, strong technical leadership is just as important as technical expertise. It ensures teams remain focused, adaptable, and aligned with business objectives—even in challenging environments.

In the race to reduce costs, many companies turn to offshore development. While this approach can be effective in certain scenarios, it can sometimes come with trade-offs in quality, efficiency, and long-term value.

We’ve seen this play out in the HCM space, where reliance on less experienced teams led to delays, inefficiencies, and increased costs over time. Pairing offshore development with strategic leadership proved to be a game-changer, ensuring projects stayed on track while maintaining a high standard of quality. 

This experience underscores an important point: The cheapest option isn’t always the most cost-effective. Investing in the right mix of expertise and resources can prevent costly mistakes and deliver better outcomes in the long run. 

Custom development is more than just a technical solution—it’s a strategic enabler for HCM providers looking to modernize, integrate, and scale their platforms. 

The lessons from these projects are clear. By prioritizing modernization, investing in seamless integrations, and leveraging strong technical leadership, HCM providers can transform their platforms to meet the demands of today’s market while positioning themselves for future success.