Software-as-a-Service (SaaS) is taking off in retail banks and insurance companies for new IT projects.
According to a report from SAP 42% of IT decision makers in financial services believe that SaaS spending will ‘increase significantly’ over the next 18 months, that about 33% among insurers.
SaaS has turned out to be an ideal option for 27% of banks and insurers, with additional 42% implementing it in every IT project.
80% believe that SaaS will allow organisations to react more quickly to market prospects, with other a further 79% agree that SaaS facilitates new market entrants. SaaS is in use within lines of business by 42% of banks and 36% of insurers.
However Saas is not without its issues. 36% of banks and insurers are worried about regulatory compliance, 35% on reliability and availability and 31% concerned about the complexity of integrating SaaS with existing systems as the vital obstacles to the increasing adoption of SaaS.
The report said companies are now realising the cloud can beef up efficiencies and defend their competitive position.
