Firms save up to 40% on CRM using SaaS says Gartner

Organisations are experiencing project savings of between 25% and 40% by deploying CRM applications via the software...

Organisations are experiencing project savings of between 25% and 40% by deploying CRM applications via the software as a service (SaaS) model, says analyst Gartner.

Gartner says firms are making these savings from reduced application expenses and lower implementation costs.

Much of the savings that firms are making are a result of a lesser dependence on large external service providers (ESPs). ESPs typically help businesses improve customer processes as part of a CRM deployment, but they play less of a role when SaaS is involved, said the analyst.

Among the top 100 SaaS deployments in 2007 and 2008, fewer than 10% involved a large system integrator or an external business consulting team, Gartner said.

"This would indicate that the role of ESPs in designing, measuring and driving CRM process improvements will diminish at enterprises deploying SaaS solutions for CRM," said Gartner.

By 2012, 30% of new customer service and support application investments will be through the SaaS model, predicts Gartner.

The suitability of SaaS for delivering CRM applications will be discussed at the Gartner Customer Relationship Management Summit 2009, taking place 3-4 March in London.

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