{"id":109393,"date":"2024-02-22T13:08:00","date_gmt":"2024-02-22T18:08:00","guid":{"rendered":"https:\/\/jumpcloud.com\/?p=109393"},"modified":"2024-06-06T15:21:10","modified_gmt":"2024-06-06T19:21:10","slug":"saas-procurement-best-practices-common-mistakes","status":"publish","type":"post","link":"https:\/\/jumpcloud.com\/blog\/saas-procurement-best-practices-common-mistakes","title":{"rendered":"SaaS Procurement: Best Practices & Common Mistakes"},"content":{"rendered":"\n

Teams that rely on several software as a service (SaaS) tools may find SaaS procurement to be a tedious and paperwork-heavy process. However, if managed efficiently, this process can help eliminate underutilized or redundant apps and ultimately cut costs. This blog will cover the best practices for SaaS procurement and common pitfalls to avoid.<\/p>\n\n\n\n

What Is SaaS Procurement?<\/h2>\n\n\n\n

SaaS procurement is the process of evaluating, selecting, and purchasing SaaS tools and vendors for your organization. The evaluation and selection process may be based on your organization\u2019s security, compliance, productivity, and pricing needs, among other factors.  <\/p>\n\n\n\n

The Difference Between SaaS Procurement and SaaS Purchasing<\/h2>\n\n\n\n

SaaS procurement is the entire process of selecting and implementing a SaaS app, including purchasing. SaaS purchasing is just the specific step of acquiring a product or service by the buyer.<\/p>\n\n\n\n

\n

Buyers complete <\/em>70%<\/em><\/a> of the buying process before engaging a vendor.<\/em><\/p>\n<\/blockquote>\n\n\n\n

SaaS governance refers to policies, procedures, and standards companies use to manage their SaaS applications, from procurement to retirement. It ensures adherence to cybersecurity frameworks, privacy, and compliance standards, mitigates risks, and optimizes performance and cost. <\/p>\n\n\n\n

Effective SaaS governance is essential for secure and efficient IT Governance. <\/p>\n\n\n\n

The Importance of SaaS Procurement<\/h2>\n\n\n\n

In the past, procurement teams were responsible for assessing the effectiveness of the purchase process and communicating the results to internal stakeholders for implementation. However, with the advent of the SaaS model, procurement teams need to adapt to keep up with the latest technological advancements, trends, and ever-evolving business requirements.<\/p>\n\n\n\n

Today, there are countless SaaS tools, subscription types, and vendors to choose from. This abundance of options gives buyers a significant advantage over sellers. Therefore, it is crucial to have a rigorous selection process to maximize profits while optimizing costs and efficiency. This approach is commonly known as SaaS procurement.<\/p>\n\n\n\n

SaaS Procurement Best Practices<\/h2>\n\n\n\n

The process of procuring SaaS solutions can be compared to testing the waters before diving in. You need to have a good understanding of the temperature, depth, and other nuances before committing. This is particularly important when it comes to SaaS procurement. <\/p>\n\n\n\n

Before making a purchase, it is critical to evaluate potential solutions thoroughly. Here are the best practices for SaaS procurement that can help you choose the most suitable vendor for your specific needs:<\/p>\n\n\n\n

Define Your Needs and Expectations<\/h3>\n\n\n\n

Start by outlining your objectives. What problems are you trying to solve with this SaaS solution? Consider your existing tech stack and determine your requirements \u2014 for example, what integrations might be necessary with this new tool? Other questions to ask yourself when determining your objectives include “What specific challenges do I need to address?” and “What features are most critical for my needs?” <\/p>\n\n\n\n

Engage with various departments, particularly those using the tool extensively, to gather insights and form a comprehensive understanding of your needs.<\/p>\n\n\n\n

Conduct Thorough Market Research and Make Comparisons <\/h3>\n\n\n\n

It’s important to remember that popularity doesn’t always mean suitability. To find the best product for your needs, you should research all corners of the market, not just the well-known vendors. List potential providers and evaluate them critically based on your defined needs and expectations. Conduct comprehensive market research to identify potential vendors and evaluate their offerings, including features, support, scalability, and pricing structures. Don’t leave your future to chance. Consider your growth, evolving needs, and potential obstacles. In this regard: <\/p>\n\n\n\n