Wednesday, February 9, 2011

SaaS - An Opportunity or A Threat to Indian IT/ITES Industry

The most quickly adopted cloud-computing model is SaaS (Software as a Service) due to the relative ease with which it can be implemented for key yet mundane IT enabled tasks in an organization. This straight away leads to a debate whether SaaS is an opportunity or a threat to the IT/ITES outsourcing industry in India.

To come to a logical conclusion it is important to understand what SaaS is. SaaS, put simply, is software provided as a service over the internet, either on a subscription basis or pay-per-use basis. It certainly is a revolutionary concept as it presents low-cost upfront investments to maintain and upgrade software applications.

For many verticals like Manufacturing, Human Resource Management, Education and Retail it makes strategically viable to move to the SaaS cloud and offload some overheads of IT. SaaS becomes another way of presenting outsourcing method to these verticals. Some of the operations such as payroll management, sales lead generation and sales tracking can follow standardised protocols and hence go the SaaS-way, only this time much cheaper.