58% of firms to 'maintain SaaS spending'

Over half (58 per cent) of businesses intend to maintain their spending on software-as-a-service (SaaS) through to 2011, research shows.

Nearly a third (32 per cent) admitted that they would increase their spending on SaaS outsourcing, according to research by Gartner.

Some 46 per cent of firms indicated that meeting technical requirements was the top priority for SaaS such as resource management software and employee scheduling software.

Meanwhile, privacy and confidentiality was a priority for one in three (33 per cent).

However, 38 per cent admitted to experiencing difficulty with integration.

Twiggy Lo, principal research analyst at Gartner, explained that despite its growing popularity, there are still improvements that need to be made to SaaS.

She said: "Underwhelming customer satisfaction scores, hesitation over the true cost of SaaS solutions and concerns regarding how successfully SaaS applications can be integrated with other applications all point to issues that will need addressing and resolving."

Managing vice-president at Gartner Daryl Plummer recently claimed that ensuring services such as SaaS work is a complicated task.

He added that relationship management is also set to become an important part of service delivery alongside sorting out integration issues.

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