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Should a small Agency really need HR software?

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in 1970s and 80s the consultancies and agencies used to process almost every kind of task e.g. Hiring and Recruiting, by paper work and huge manpower. In recent years the technologies have changed a lot ,now for almost every kind of task and data storing Software tools are being used. So My question is that , due to a high value of Sofwares and CRMs ,should a starting small Agency or consultancy use tools like A HR software?
 
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