Sourcing and SaaS: Businesses Look to the Cloud


The outsourcing topic tends to be popular as political fodder during an election year, particularly as Washington works to encourage job growth ahead of the November vote. With candidates trying to link each other to the often controversial decision to move certain positions overseas, businesses are caught in the crossfire as they determine how best to achieve the cost savings typically found through outsourcing without damaging relations with their customer base at home.

For some businesses, the best combination has been a little bit of sourcing and a lot of SaaS. Cloud computing options are being used as substitutes to manage business processes that were previously handled in overseas destinations such as India. However, with cost savings narrowing due to rising wages, the security and quality risks involved in allowing company and customer data to be managed overseas are sending C-level executives looking for viable alternatives.

Where certain AP processes such as invoice management are concerned, SaaS is serving as a bridge between the risks and rewards of outsourcing. Companies mitigate risks by keeping their data on shore, but still manage to achieve drastic cost reductions over the typical bloated AP department. SaaS allows companies to take advantage of the recent advances in cloud computing, which include rapid deployment, no hosting or upgrading hassle, minimized capital investment and, if deployed by a suitable provider, an application that is tailored to their needs. With the help of a cloud service partner, companies are able to shed much of the expense involved in managing their own IT equipment.

While our candidates continue to use outsourcing as a political platform, businesses understand both the value and the risk involved in it. For some, however, the perfect compromise has turned out to be as easy as a cloud-based subscription.

For more information about recent outsourcing trends, register to download our whitepaper: Trends in Automation and Sourcing.

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