Trends Shaping Software as a Service (SaaS) Development in 2016

SaaS Development Can be the Future for IT Services Outsourcing Companies

Tech TrendsIf some of the inherent defects in the SaaS model are overcome, SaaS could very well be the future of IT Services.Outsourcing SaaS has revolutionized the world of IT to a point where everything else looks like it belongs to the dinosaur era.


However, to take this forward to the next stage requires some changes that need to happen to the model as it exists today.

Here are a few of them:

  • Importance of transparency

SaaS enterprises reside on the cloud making it difficult for companies to know and trust the level of protection for their data. There is no clear way of knowing how secure one’s content really is. SaaS providers much ensure application based security to protect client confidentiality. It becomes their mandate to ensure that your data is secure.

  • From proliferation to consolidation

SaaS models have resulted in a proliferation of apps and solutions which various service providers are offering to the market. For example, there are nearly 4 million apps available for download or purchase at the Apple App Store. Integration of apps and maybe even service providers will lead to more organized and structured SaaS offerings in the long term.

  • Pay for what you want model

Bundled software offerings which give clients a host of software which they will probably never use will slowly be replaced by `unbundled’ where customers get to choose only what they want. This becomes perfect for companies focussed on the bottom line. SaaS companies have to adapt and morph their existing models to maximize this trend.

  • Large SaaS Companies will make way for smaller providers

SMBs especially will shy away from burying a lot of money on software that is intended precisely for the purpose of bringing down their costs. They will go after the smaller providers who can offer SaaS solutions, which are customized to meet their needs, which are more precise and cutting edge.

  • Smaller IT Departments

IT departments will necessarily shrink in the SaaS model as maintenance services are provided by the SaaS provider. Internal teams will not have to be focussed on making the software work. This change in the IT department will lead to more meaningful job opportunities for IT people.

  • SaaS must have a face

It has always been the case that companies looking to customize or purchase software rely heavily on reputation and the people behind the screen who are providing the services. This `human touch’ will lead to more success for smaller SaaS companies who though providing their services remotely, are still accessible to customers. This will lead to a bisection of the market with the larger SaaS providers retain larger companies with smaller SaaS providers cashing in on the SMB segment.

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Joseph Aldrich is a Freelance Digital Consultant working in the Information Technology sector. Joseph shares his expertise and knowledge through articles and blogs on trending subjects in the field of technology innovation, software,and IT outsourcing.

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