The 2020 ISG Provider Lens™ Digital Business – SaaS Solutions Global Report finds many enterprises adopting SaaS tools for their artificial intelligence and machine learning features in the human capital management (HCM), enterprise resource planning (ERP) and customer relationship management (CRM) areas.
Smart features in SaaS products are offering several new benefits to business customers, said
AI provides a more accurate understanding of seasonal impacts on revenue and sales, enabling predictive procurement, the report adds. Financial planning and results forecasts can be improved by using current SaaS offerings.
For HCM, AI helps companies understand employee experience and its impact on health and productivity, the report says. Behavior analytics and sentiment analysis can predict retention and attrition. AI can also accelerate the employee recruiting process by scanning candidates’ resumes.
For CRM, AI can estimate deal close chances to predict revenue, the report adds. In commerce, AI powers dynamic pricing and product recommendation. For contact center agents, AI translates voice to text to compare with previous calls and recommend the next action. AI also provides real-time customer sentiment analysis, which can be used for automated call escalation.
The report also notes that the SaaS market is seeing growth in the number of vendors, including small, niche providers dedicated to a single industry in a limited geographical area. Many larger SaaS companies have acquired smaller vendors in the past three years, with vendors seeing acquisitions as a way to grow their customer base.
The SaaS market was seeing strong growth before the COVID-19 pandemic, the report notes, reaching a record high in annual contract value (ACV) in the first quarter of 2020, according to the ISG Index™, which measures market performance. The latest ISG Index covering the third quarter shows the global SaaS market has decelerated from the second quarter, although ACV still is up 2 percent from the prior year, and 3 percent higher year-to-date versus 2019.
The report suggests SaaS customers pay close attention to support options and potential mergers when choosing a SaaS vendor. Some vendors provide customer support directly, while others transfer support responsibility to partners. A large number of partners and apps in a vendor’s marketplace is one indication of a robust ecosystem that attracts more contributors and innovation.
The 2020 ISG Provider Lens™ Digital business – SaaS Solutions Global Report evaluates the capabilities of 19 providers across three quadrants:
The report names Oracle Cloud as a leader in all three quadrants and Microsoft, SAP and Workday as leaders in two. Salesforce, UKG (
A customized version of the report is available from UKG (
The 2020 ISG Provider Lens™ Digital business – SaaS Solutions Global Report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
A companion research series, the ISG Provider Lens Archetype reports, offers a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.
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Source:Will Thoretz Information Services Group, Inc. +1 203 517 3119 Will.Thoretz@isg-one.comJim Baptiste Matter Communications for ISG +1 978 518 4527 jbaptiste@matternow.com
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