In today’s fast-paced world, Software-as-a-Service (SaaS) has become an integral part of businesses of all sizes.

With its many benefits, including cost savings, scalability, and ease of use, SaaS has quickly become a popular solution for managing various aspects of business operations, including spend management.

In this blog post, we will explore statistics related to SaaS spend management, covering everything from adoption rates to the impact of SaaS on business processes.

Key SaaS Spend Management Statistics 2023 – MY Choice

  • According to a report by Gartner, SaaS (Software as a Service) spending is expected to reach $116 billion in 2021, representing a 14.2% increase from the previous year.
  • The same report also found that SaaS applications account for approximately 64% of all public cloud services spending.
  • A survey conducted by Blissfully found that the average company spends around $343 per employee per month on SaaS applications.
  • Another survey by Flexera found that 73% of organizations plan to increase their SaaS spend in the coming year.
  • According to a report by Zylo, enterprises on average have 600 SaaS applications in use, but only 29% of them are actively used and 7% of them are redundant.
  • The same report found that the average enterprise spends $343,000 per year on unused SaaS subscriptions.
  • A survey by BetterCloud found that 79% of IT leaders believe their organization is wasting money on unused SaaS subscriptions.
  • The same survey found that 80% of organizations do not have a formal SaaS management strategy in place.
  • According to a report by Forrester, implementing a SaaS management platform can lead to a 30% reduction in SaaS spend and a 50% reduction in the time spent managing SaaS applications.
  • Another report by Gartner found that organizations can save up to 30% on SaaS spending by optimizing their SaaS license management processes.

SaaS Spend Management Stats

StatisticValue
Global SaaS spend management market size (2020)$2.05 billion
Projected CAGR of the global SaaS spend management market (2020-2026)18.5%
North American SaaS spend management market size (2020)$1.07 billion
Projected CAGR of the North American SaaS spend management market (2020-2026)17.1%
European SaaS spend management market size (2020)$460.9 million
Projected CAGR of the European SaaS spend management market (2020-2026)16.3%
Asia-Pacific SaaS spend management market size (2020)$366.7 million
Projected CAGR of the Asia-Pacific SaaS spend management market (2020-2026)20.1%
  1. The global SaaS spend management market was valued at $2.78 billion in 2020 and is expected to reach $7.78 billion by 2026. (Source: MarketsandMarkets)
  2. The US SaaS spend management market was valued at $1.11 billion in 2020 and is expected to reach $3.02 billion by 2026. (Source: MarketsandMarkets)
  3. The adoption rate of SaaS spend management tools is expected to increase from 40% in 2020 to 73% in 2022. (Source: Finances Online)
  4. The average ROI for companies using SaaS spend management tools is 6-8 times their investment. (Source: Aberdeen Group)
  5. Companies using SaaS spend management tools can reduce their processing costs by up to 70%. (Source: Aberdeen Group)
  6. 90% of businesses using SaaS spend management tools report improved compliance with spending policies. (Source: Aberdeen Group)
  7. The average number of suppliers managed by companies using SaaS spend management tools is 3,471. (Source: Aberdeen Group)
  8. The average time for approving an invoice is 2.7 days for companies using SaaS spend management tools, compared to 15 days for those not using such tools. (Source: Aberdeen Group)
  9. The top industries using SaaS spend management tools are finance and insurance, healthcare, and manufacturing. (Source: Finances Online)
  10. The main reason for adopting SaaS spend management tools is to gain visibility and control over spending. (Source: Finances Online)

SaaS Spend Management Facts:

  1. SaaS spend management tools are cloud-based, enabling users to access them from anywhere with an internet connection.
  2. SaaS spend management tools automate the procurement process, from requisition to payment, reducing manual errors and processing times.
  3. SaaS spend management tools enable users to track spending in real-time, allowing them to make informed decisions and adjust budgets accordingly.
  4. SaaS spend management tools integrate with other business systems, such as accounting and ERP systems, to provide a holistic view of the organization’s spending.
  5. SaaS spend management tools provide analytics and reporting capabilities, enabling users to identify trends and areas for cost savings.

SaaS Spend Management Adoption Rates

SaaS spend management has been gaining popularity in recent years, with more and more businesses turning to this solution for managing their spending. Here are some statistics related to the adoption rates of SaaS spend management:

  1. The global SaaS market is expected to reach $307.3 billion by 2026, with a CAGR of 31.1% from 2021 to 2026. (ResearchAndMarkets)
  2. In 2020, the global SaaS market was valued at $158 billion. (Synergy Research Group)
  3. The global SaaS spend management market is expected to grow at a CAGR of 7.6% from 2021 to 2028. (Fortune Business Insights)
  4. 87% of businesses surveyed are currently using SaaS solutions. (BetterCloud)
  5. SaaS spend management adoption rates are highest in the finance and accounting industry, with 70% of businesses using SaaS solutions in this area. (FinancesOnline)

Benefits of SaaS Spend Management

SaaS spend management offers many benefits to businesses of all sizes. Here are some statistics related to the benefits of SaaS spend management:

  1. Businesses that use SaaS spend management solutions can achieve cost savings of up to 20%. (SpendHQ)
  2. SaaS spend management solutions can reduce the time it takes to process invoices by up to 90%. (SpendHQ)
  3. By automating spend management processes, businesses can reduce the risk of errors and fraud. (SpendHQ)
  4. SaaS spend management solutions can help businesses identify and eliminate wasteful spending. (SpendHQ)
  5. With SaaS spend management, businesses can gain real-time visibility into their spending and make more informed decisions. (SpendHQ)

Impact of SaaS Spend Management on Business Processes

SaaS spend management has the potential to significantly impact various aspects of business processes. Here are some statistics related to the impact of SaaS spend management on business processes:

  1. 71% of businesses surveyed reported that SaaS solutions have improved their ability to innovate. (BetterCloud)
  2. SaaS spend management solutions can help businesses reduce the time it takes to complete financial close processes by up to 50%. (SpendHQ)
  3. By automating spend management processes, businesses can free up resources to focus on other strategic initiatives. (SpendHQ)
  4. SaaS spend management solutions can help businesses increase their agility and responsiveness to market changes. (SpendHQ)
  5. With real-time data and analytics, SaaS spend management solutions can help businesses make more informed decisions and react quickly to changing market conditions. (SpendHQ)

SaaS Spend Management Category-wise Spending Statistics

  1. The most popular categories for SaaS spend are communication/collaboration, sales/marketing, and finance/accounting software. (Source: Blissfully)
  2. In 2020, the average mid-sized business used 98 SaaS applications, with the most popular categories being collaboration, marketing, and productivity tools. (Source: Blissfully)
  3. Companies spend the most on SaaS tools for customer relationship management (CRM), followed by enterprise resource planning (ERP) and human resources (HR) software. (Source: GetApp)
  4. On average, businesses allocate 22% of their IT budget to SaaS tools. (Source: BetterCloud)
  5. 52% of IT decision-makers believe that their company’s SaaS spending is too high. (Source: Flexera)

SaaS Spend Management Security and Compliance Statistics

  1. 60% of organizations have experienced a SaaS-related security incident in the past year. (Source: BetterCloud)
  2. The average organization uses 2.7 unsanctioned SaaS apps, which can pose a security risk. (Source: Netskope)
  3. Only 36% of organizations have a comprehensive SaaS security strategy in place. (Source: BetterCloud)
  4. 70% of IT professionals cite compliance and security concerns as their biggest SaaS management challenge. (Source: BetterCloud)

SaaS Spend Management Adoption and Renewal Statistics

  1. The average SaaS application has a 78% adoption rate. (Source: BetterCloud)
  2. 32% of organizations are not tracking their SaaS usage, which can lead to overspending and security risks. (Source: BetterCloud)
  3. 64% of organizations use automatic renewal for their SaaS applications. (Source: BetterCloud)
  4. 38% of SaaS subscriptions are paid for but not used, resulting in wasted spending. (Source: Flexera)
  5. Only 17% of companies have a formal process in place for evaluating SaaS applications before purchasing them. (Source: Blissfully)

SaaS Spend Management ROI and Cost Savings Statistics

  1. SaaS spend is expected to reach $140 billion by 2022, with cost savings being a major driver of adoption. (Source: IDC)
  2. On average, businesses save 21% by using SaaS tools instead of on-premises software. (Source: BetterCloud)
  3. Companies that use SaaS tools report a 63% reduction in IT management costs. (Source: Nucleus Research)
  4. 80% of companies believe that SaaS tools are more cost-effective than on-premises software. (Source: BetterCloud)
  5. 70% of businesses report that SaaS tools have helped them become more agile and innovative. (Source: BetterCloud)

SaaS Spend Management Market Analysis:

  1. The SaaS spend management market is highly fragmented, with many small and large vendors competing for market share.
  2. The market is characterized by intense competition, with vendors focusing on innovation and differentiation to gain a competitive advantage.
  3. The market is driven by factors such as the increasing need for cost reduction and process automation, the growing adoption of cloud-based solutions, and the emergence of AI and ML technologies.
  4. Key players in the SaaS spend management market include Coupa Software, SAP SE, Oracle Corporation, IBM Corporation, and Zycus Inc. (Source: MarketsandMarkets)
  5. The SaaS spend management market is expected to continue to grow in the coming years, driven by factors such as the increasing adoption of cloud-based solutions, the emergence of AI and ML technologies, and the growing demand for process automation.

SaaS Spend Management Demographics:

  1. The primary users of SaaS spend management tools are finance and procurement professionals.
  2. SaaS spend management tools are used across various industries, including finance and insurance, healthcare, manufacturing, retail, and government.
  3. The adoption of SaaS spend management tools is highest in North America, followed by Europe and Asia-Pacific.
  4. SaaS spend management tools are used by companies of all sizes, from small startups to large enterprises.
  5. The primary benefits of SaaS spend management tools are cost reduction, process automation, and improved compliance with spending policies.

SaaS Spend Management Software:

  1. Coupa Software is a leading provider of SaaS spend management tools, offering solutions for procurement, invoicing, expenses, and more.
  2. SAP Ariba provides cloud-based spend management solutions for procurement, sourcing, and supplier management.
  3. Oracle Corporation offers a suite of SaaS spend management tools, including solutions for procurement, financials, and project management.
  4. IBM Corporation offers a range of SaaS spend management tools, including solutions for procurement, contract management, and supplier management.
  5. Zycus Inc. provides cloud-based spend management solutions for procurement, sourcing, and contract management.

Conclusion

SaaS spend management is crucial for businesses of all sizes. As SaaS applications become more prevalent, it is important for organizations to track their usage, security, and costs.

The above statistics highlight some key trends in SaaS spend management, including the most popular categories for SaaS spend, security and compliance concerns, adoption and renewal rates, and ROI and cost savings.

By taking a proactive approach to SaaS spend management, businesses can maximize their investment in SaaS tools and ensure that they are getting the most value from these applications.

Hi, I'm Abdalslam, a seasoned digital marketing and software engineering professional. I review software to find the best tools that can help your online business thrive. I share my insights and experiences on my website, where 15,000 monthly readers join me. Before blogging, I managed digital marketing teams for SaaS startups, and my work has been recognized by major publications like RedHat, Oberlo, and Hostpapa. Join me to scale your startup influence.

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