Why are Global 2000 choosing SaaS?

We continue to see internally developed applications replaced by Software-as-a-Service (SaaS) solutions. This makes sense in a market challenged with talent shortages, a need for speed and agility, and the expectations of great user experiences. In our Pulse survey results we identified three key reasons* Global 2000 firms are choosing SaaS instead of continuing to DIY. These include:

1. 53% of respondents say they receive a better employee experience when their teams use a SaaS-based products. With professional UI/UX developers, and dedicated talent for on-going development, the satisfaction and experience with SaaS exceeds home-grown solutions in many cases.
2. SaaS is already in the cloud. As such, 49% respond SaaS is natively available at scale for their organization, thus delivering improved adoption, usage, and consumption.
3. 47% say SaaS solutions are easier to procure. So goodbye long sales and development cycles, freeing teams to focus on getting people what they want.

Yet only 39% say they are getting the value they expect from their SaaS investments.  

With adoption, experience, functionality, availability, and more accounted for, what gives? HFS believes SaaS may be failing organizations because all the things that make it easy, don’t necessarily make SaaS the right fit for the business’ needs.

The Bottom Line: CIOs must take a step back and work with their business partners to understand “why they are seeking a SaaS solution in the first place.” If it isn’t clear why your firm is investing in SaaS and what business problems are being solved because of that investment, achieving business value will always be a challenge.

Note: For our analysis  we are focusing on responses of “strongly agree” over choices of “agree”, “disagree”, or “strongly disagree”)

Explore the HFS Pulse Dashboard

Take a look at the breadth of data in our Pulse Dashboard, which showcases data about current and future demand trends for technology and business services and related emerging technologies. See more here.