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Redefine HR in the German regulated sectors

Enable a secure and compliant HR digital transformation in the public sector

December 18 2025Eren Aksizoğlu

From manual to digital: A new chapter for HR

Public sector HR faces challenges from manual workflows, fragmented systems, and complex compliance. Employees and citizens expect faster, digital-first services, but outdated processes cause delays. Discover how HR digital transformation can streamline services while ensuring compliance and sovereignty.

What is HR digital transformation?

The special added value of HRcules on the Open Telekom Cloud lies in the combination of a specialized HR framework for regulated industries and a sovereign cloud platform on which all processes are operated entirely in the European legal area.

HR digital transformation refers to the process of leveraging digital technologies to modernize and automate HR processes: from recruitment and onboarding to payroll, performance, and workforce analytics.

In Germany, this transformation goes beyond simple digitalization—establishing compliant, transparent, and efficient HR operations that align with national and EU data protection standards.

HR digital transformation focuses on:

  • Streamlining manual HR workflows into automated, audit-proof systems
  • Empowering HR teams to make data-driven decisions
  • Enhancing employee and citizen experience through self-service and transparency
  • Ensuring regulatory compliance through secure cloud-based platforms

With frameworks such as HRcules running on the Open Telekom Cloud (OTC), institutions can achieve these goals in a controlled, sovereign environment—ensuring every HR process meets strict compliance, performance, and auditability standards.

Key tech in HR digital transformation

HR digital transformation in regulated sectors is not just about software. Leaders in government, healthcare, and education need solutions that respect strict laws, protect data sovereignty, and deliver efficiency without risk.

HRcules-as-a-Framework, co-developed by T-Systems and Deutsche Telekom Services Europe (DTSE), provides exactly that. It combines Pega’s low-code automation with the sovereign OTC. The result: standardized, automated, and fully audit-proof HR processes which are secure, transparent, and future-ready for Europe’s compliance-driven environment.

HR digital transformation in the public sector: Challenges

HR digital transformation is not just about software adoption. Public institutions face complex structural and regulatory challenges:

  • Stringent compliance frameworks: GDPR, Laufbahngruppen (career path groups), Besoldungsregelungen (salary regulations), and collective labor agreements
  • Paper-heavy processes: Manual workflows slow down onboarding, leave management, and promotions
  • Fragmented systems: HR data is scattered, creating inefficiencies and increasing risk
  • Audit and legal requirements: Every HR decision must be traceable and transparent
  • Resource constraints: Limited budgets and staff make modernization difficult even as demand continues to grow

The consequence: HR teams devote more time to administrative tasks rather than focusing on employee support. This leads to delays and a lack of transparency for both citizens and employees, while organizations struggle with inefficiencies and heightened compliance risks.

The solution: HRcules-as-a-Framework

HRcules, a modular, low-code framework for regulated HR environments, turns HR delivery into a process factory: standardized, automated, scalable, and continuously improving. It runs on OTC either as a T-Systems–managed Pega platform (sovereign, Pega-aaS) or in a client-managed model. To build a sustainable HR process factory on OTC, HRcules-as-a-Framework brings three tightly connected layers that work from the center out. 

The Platform Foundation (HRcules Core) provides the governed runtime and orchestration, data, decisions, SLAs, and auditability baked in. On top, the Reusable HR Process Catalog (HRcules Toolkit) offers ready-to-use microjourneys, UI templates, and reference models that let teams assemble new HR services quickly and consistently. Finally, the Delivery Playbook and Governance (DT Transformation Method) aligns roles, cadence, and quality gates so every release is predictable and scalable. Together, these layers standardize, automate, and continuously improve HR, so you can start fast, reuse more, and scale with confidence. 

1. Platform Foundation (HRcules Core)

  • Orchestrates end-to-end HR cases with compliance “baked in” (SLAs, approvals, escalations, audit trail)
  • Standardized case designs for personnel lifecycle, leave, promotions, career development
  • Public-sector extensions (e.g., Laufbahngruppen, Besoldung and other regulated patterns)
  • Sub-case orchestration for complex flows such as rehabilitation, medical assessment, reassignment, retirement

2. Reusable HR Process Catalog (HRcules Toolkit)

  • Preconfigured microjourneys and patterns (onboarding, parental leave, promotion, etc.)
  • Constellation UI templates for employees, managers, and HR agents
  • Reference data models and case types for reporting and traceability
  • Low-code building blocks that reduce delivery time and enforce consistency

3. Delivery Playbook and Governance (DT Transformation Method)

  • Transformation Journey Model with pre-defined phases (from Inspiration to Scale) with clear roles, RACI, cadence, and quality gates
  • Operating model and business guide artifacts that capture goals, KPIs, inputs/outputs, and the decisions you want to automate
  • Technical blueprint and framework defining data views, decision services, orchestration and SLAs, configured safely without forking code

A compliant and future-proof HR engine

Infographic about HRcules-as-a-Framework: The accelerator for HR transformation at scale

When these three layers work as one, HR moves from ad-hoc projects to an industrialized HR Process Factory where processes are standardized, automated, and scaled across units with continuous improvement built in. Running on the sovereign OTC, either T-Systems-managed or client-managed, you get predictable delivery, rapid time-to-value, full auditability, and the freedom to keep adding reusable microjourneys. The result is a compliant, future-proof HR engine that consistently turns ideas into live, measurable outcomes.

Flexible deployment models for HRcules on OTC

Running natively on the OTC, HRcules is offered as a sovereign Pega-as-a-Service, combining: 

  • Sector-specific HR logic (e.g. civil servants workflows)
  • Structured delivery excellence
  • Full public-sector-grade cloud compliance 

Below are the two variants we offer:

  1. HRcules on OTC/on-premises (client-managed): Where the customer runs and manages their own licensed Pega environment on OTC/on-premises. T-Systems delivers HRcules components, blueprints, and consulting
  2. HRcules via Pega-as-a-Service on OTC: Where you get fully managed Pega platform operated by T-Systems (Pega runtime, infra, updates, backups); this includes HRcules, sovereign AI, SLAs, and support

Pega and T-Systems: Enabling digital transformation

Hear from Graham Twyford as he shares insights into this dynamic partnership and how it's helping transform businesses.
 

Benefits of HR digital transformation

Digital transformation in HR delivers measurable advantages across efficiency, transparency, and employee satisfaction. For regulated sectors where every decision must be traceable and compliant, the benefits extend far beyond automation!

Why T-Systems’ OTC is the ideal foundation

Built in Europe, for Europe, the OTC is a highly secure, scalable, and fully managed public cloud platform that aligns with stringent European data privacy and compliance regulations. It offers Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) options with high availability and performance. HR transformation is only as strong as the infrastructure supporting it and OTC ensures HR processes run securely, reliably, and in a sovereign manner.

Key benefits

  • Sovereign cloud hosting: Data remains in EU/German data centers, compliant with GDPR, BSI C5, ISO 27001, SOC2, and other regulatory standards; from next year, OTC will also meet the requirements of the BSI IT baseline protection (BSI IT-Grundschutz), further strengthening its compliance foundation
  • Security and privacy: Full control over sensitive HR data, encryption, and operational access
  • Scalability and reliability: Autoscaling infrastructure with 24/7 monitoring for consistent performance under peak demand
  • Future-ready and flexible: Vendor-neutral platform supports evolving technologies and both client-managed and fully managed Pega-as-a-Service deployments
  • Pega integration: Low-code automation, hyperautomation, and workflow orchestration deliver rapid, traceable HR process management

Combining HRcules with OTC ensures end-to-end automation, compliance assurance, and operational transparency for public institutions.
 

Use case 1: Incapacity for work (civil servants)

Managing Dienstunfähigkeit (civil servant incapacity) traditionally involves paper-based workflows, fragmented communication, and high legal risk. HRcules transforms this process with:

  • Core logic: Encodes legal frameworks around incapacity
  • Sub-case orchestration: Coordinates with HR, medical, and pension authorities
  • Audit-proof documentation: Every step is traceable and compliant
  • Pega case management: Automates end-to-end workflows, ensuring compliance and hyperautomation efficiency

Impact: Faster, transparent, and compliant decision-making for employees and institutions.
 

Use case 2: Career path and promotion management

Promotion management in regulated industries is complex, with rules varying across departments and unions. HRcules simplifies this with:

  • Automation of promotion logic and career path workflows
  • Dashboards for end-to-end visibility
  • Sovereign AI assistants for policy interpretation and employee self-service
  • Pega low-code workflows for rapid approvals and hyperautomation

Impact: Employees trust the fairness of the process, and HR reduces administrative overhead and compliance risk.

Trusted expertise meets sovereign cloud

With Pega low-code automation, DTSE’s HR domain knowledge, and T-Systems’ OTC, organizations receive a complete, end-to-end solution.

  • Methodology: Structured, audit-ready HR transformation
  • Compliance: Full alignment with GDPR, BSI C5, ISO 27001, and public sector regulations
  • Operational clarity: Transparent, end-to-end workflows with reusable frameworks and dashboards

Why opt for T-Systems?

HR transformation requires experience, domain knowledge, and secure infrastructure. T-Systems delivers all three:

  • Proven expertise: The Magenta team includes HR experts with extensive public sector experience
  • End-to-end framework: HRcules provides modular, reusable, compliance-ready assets
  • Sovereign cloud advantage: Fully hosted on OTC, ensuring data sovereignty and operational transparency
  • Agile and structured delivery: DT Transformation Method guarantees predictable, governance-aligned implementation
  • Future-ready integration: Optional AI services, microjourneys, and modular case types support evolving HR needs
  • Pega-as-a-Service: Fully managed platform enables low-code automation, hyperautomation, and audit-ready HR processes

With T-Systems, organizations gain more than a platform—they gain a trusted partner capable of delivering secure, compliant, and scalable HR transformation, ensuring operational clarity, citizen trust, employee confidence, and long-term value.

Future-ready HR, built on trust

The pressure on public sector HR will only grow with rising citizen expectations, expanding compliance requirements, and limited resources.

HRcules-as-a-Framework on OTC, powered by Pega low-code automation, transforms HR from manual, risk-prone processes to secure, transparent, and employee-friendly operations.

  • Rapid deployment: Low-code automation accelerates service delivery
  • Trusted infrastructure: Sovereign cloud ensures compliance and security
  • Expert guidance: T-Systems combines methodology, HR domain expertise, and operational excellence

Contact T-Systems today to accelerate your HR transformation.

About the author
IM-Aksizoglu-Eren

Eren Aksizoğlu

Head of Pega Center of Excellence (CoE)

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