With the inception of SaaS and cloud-based technology, the way procurement works has changed drastically. Earlier procurement teams have lengthy RFPs and need to review all the responses, requiring weeks or months of evaluation before they present their findings to stakeholders.
SaaS technology has changed the way of doing things and expedited the internal processes. Today, procurement teams are changing their focus on SaaS and other cloud-based applications. SaaS enables procurement teams to integrate seamlessly and reduces processing times.
The benefits are countless, organizations are transitioning from traditional on-premise software to cloud-based procurement solutions.
Reasons Why Procurement Teams Choose SaaS
The key reason why procurement teams are selecting SaaS solutions is due to its low cost, when compared to the on-premise counterparts. The SaaS model is a pay-per-delivery model, where the company pays per user or for the amount of software used. With SaaS solutions, you need not to go for pricy hardware purchases nor the expensive installations. Lower upfront costs mean quick ROI. You don’t have to pay for additional upgrades or maintenance costs, since it is taken care of by the vendor. The costs savings of SaaS and cloud-based solutions are important as they are weighing the pros and cons of software purchases.
Earlier, software roll out could take years and the cost of failed deployments is high. Procurement departments no longer have to bother about application implementation, as you can directly work with the vendor’s service team for the implementation to be done. SaaS models allow you to focus on third-party integrations and internal integrations so they can share required data.
Trial Before you Purchase
In the world of on-premise software, procurement departments would spend significant amount of time evaluating new software, attending demos and visiting the vendor’s location to see the solution. Once the implementation process is completed and the software is installed, you can ensure the solution meets your standards and works in an effective manner. But, this is not the case in on-premise systems.
However, in the SaaS world, it is very common to test-drive the solution before they go for it. This ensures that solution is perfect and will work seamlessly with other solutions. Trying before you buy the solutions is a big advantage, this helps you test various possible situations and find out if it really meets your organization’s needs.
What if your organization is scaling fast, but the software is not keeping up with the growth? This was the case when on-premise software was used. This is not only a hassle, but takes some time for the IT department to reconfigure the infrastructure to scale and has to be manually installed for every employee upon software update.
In the SaaS world, the cost of scaling is much less and can be easily controlled if your company’s growth is not as expected. Using a SaaS license tool makes it even easier to control the user licenses as well. With subscription-based models added to organizations more than on-premise solutions, procurement departments are spending more time on strategic initiatives. Organizations wants to find a new way to better manage SaaS applications across the organizations while gaining visibility into spending.