SaaS implementation delays cause missed business opportunities, loss in productivity: IDC study

Implementation delays in Software-as-a-Service (SaaS) adoption lead to an average loss of ₹5.6 crore in missed business opportunities. The business impact is in addition to loss in employee productivity, customer experience, and competitive positioning, a new study by research firm IDC and commissioned by Zoho, showed.

For IDC State of SaaS Adoption in India Survey 2024, IDC surveyed 240 enterprises in India (with over 1,000 employees) from across healthcare, retail, manufacturing and financial services industries that had implemented SaaS solutions after 2020. The study found that nearly 75% of Indian enterprises that have adopted SaaS solutions since 2020 have encountered implementation delays, resulting in an average timeline overrun of 57% and cost overrun of 43%.

The primary causes for implementation delays include project management inefficiencies, unexpected integration or security challenges, talent shortage, and technical complexities in the new solution. These obstacles slow down digital transformation efforts, escalate costs, and disrupt business processes, ultimately delaying the expected return on SaaS investments, as per the study.

This study comes at a time when Zoho is positioning as a platform vendor, a shift from its earlier approach as an app vendor. The IDC study further claims that enterprises are increasingly adopting a platform-driven approach to SaaS implementation. This model enables faster deployments by leveraging automation, reducing customisation efforts, and ensuring seamless interoperability. 

The study was unveiled at a media event in Bengaluru which also had Mani Vembu, Zoho’s CEO, in attendance. To be sure, Vembu took over the role of Zoho.com in January when founder Sridhar Vembu transitioned into the chief scientist position.

On the sidelines of the event, Vembu said that the company has physical presence in over 25 regions, with plans to expand further in LATM, Middle East, and APAC. India is currently the fastest growing market for Zoho, followed by the Middle East. The company spokesperson also added that while the US is the largest market for the company, its revenue share is reducing. The company expects that India will take over the US as the largest market in 10 years.