Dear Sheetal,
I have a very straight forward answer for your query...
If I ask you a question, why do you need a HR software in the first place? Your answer could be,
1. I am / my company / my employees are facing 1,2,3 problems and I want to solve those problems.
2. I want to minimize effort and save time
3. I want to maintain accurate data and reports for my management & statutory purposes
Out of the above, 1st point is the foremost important purpose of the software system. Once you address your pain areas and find a good solution provider (HR Software), then you will be confident of rest of the points. So, find out the vendors' solutions which solves all/most of your problems and do a shortlist.
The 2nd point is also important, because once you get your work done efficiently use the software with minimal effort & time, then you will have good amount of time to concentrate on other important HR activities.
The 3rd point is the result of the first two points which enhances you to analyse the data for future planning, recruitment, attrition, payroll cost, etc...
So, please consider the above points along with other suggestions made by experts in this thread.
Hope you would find this information useful.
Regards,
Jay