75% Indian Enterprises Face Losses Due to SaaS Implementation Delays: IDC-Zoho Study

Indian enterprises adopting software-as-a-service (SaaS) solutions are encountering significant implementation delays, resulting in rising costs and missed business opportunities, according to a new IDC study commissioned by global technology company Zoho.

The report, titled ‘IDC State of SaaS Adoption in India Survey 2024’, revealed that 75% of enterprises implementing SaaS since 2020 have faced timeline overruns averaging 57%, with cost escalations reaching 43%. 

These setbacks have led to an estimated average loss of ₹5.6 crore per business due to missed opportunities, while also impacting productivity, customer satisfaction, and competitive positioning.

Challenges in SaaS Deployment

Highlighting the critical need for streamlined SaaS implementation, Sharath Srinivasamurthy, associate vice president of IDC India, stated, “The ability to deploy SaaS solutions efficiently is no longer just an IT priority, it is a business necessity. Long deployment cycles escalate costs, slow down innovation, and reduce market responsiveness. Enterprises need a strategic approach, one that integrates automation, contextual intelligence, and development tools, to accelerate implementation and unlock SaaS value faster.”

Zoho CEO Mani Vembu echoed this sentiment, emphasising the importance of reducing deployment timelines.

“Our platform-first approach eliminates common implementation bottlenecks by offering deeply integrated applications, low-code extensibility, and AI-powered automation. This enables businesses to deploy solutions and go live faster, reduce implementation risks, and accelerate their digital transformation efforts,” he said.

Financial Impact and Business Performance

The study highlighted the far-reaching consequences of SaaS implementation delays. While 92.5% of enterprises acknowledge the importance of timely deployment, 67% reported increased costs due to extended timelines. 

Moreover, 53% saw digital transformation efforts hindered, 48% noted customer dissatisfaction, and 46% suffered missed revenue opportunities, directly affecting overall business performance.

The financial burden was particularly pronounced in financial and accounting (F&A) solutions, which recorded the highest cost overruns at 60%. With 66% of enterprises deploying these solutions, delays disrupted crucial processes such as invoicing and payment processing, leading to penalties and compliance risks.

Customer experience solutions were the most widely adopted post-pandemic (87%), experiencing an average timeline overrun of 51%. However, email and collaboration solutions recorded the highest delays at 68%, followed by legal solutions at 61%. 

Key reasons for implementation delays included project management inefficiencies (47%), integration and security challenges (38%), talent shortages (38%), and technical complexities (38%).

Sector-Specific Impact

The study mentioned how different industries have been affected by SaaS implementation delays. In the healthcare sector, 63% of enterprises reported cost increases, while 58% faced reduced productivity and customer dissatisfaction. In financial services, 75% of enterprises encountered rising costs, with 60% reporting disruptions in digital transformation and 55% experiencing customer dissatisfaction.

In the manufacturing sector, 72% of enterprises faced cost overruns, while 41% reported revenue losses. Retail businesses also struggled, with 61% reporting revenue losses, 58% facing higher costs, and 51% seeing declines in productivity.

Transitioning to a Platform-First Approach

To overcome these challenges, enterprises are increasingly adopting a platform-driven approach to SaaS implementation. This strategy adopts automation, reduces customisation efforts, and ensures seamless integration. 

The study found that 59% of enterprises consider automation and DevOps essential for accelerating deployments. Automated workflows help minimise manual dependencies, decrease errors, and improve implementation speed.

Furthermore, 53% of enterprises highlighted the role of integrated developer platforms with low-code, no-code, and pro-code capabilities in overcoming customisation bottlenecks. These platforms allow business users and IT teams to build and modify applications quickly, reducing deployment delays. Another 48% stressed the importance of plug-and-play solutions that simplify integrations and system connectivity.

“Businesses cannot afford to be slowed down by complex and fragmented implementations. Zoho’s platform architecture ensures enterprises have the flexibility to implement solutions at scale with speed and minimal disruption,” Vembu added. 

He noted that by offering pre-configured industry workflows, AI-driven analytics, and seamless interoperability, organisations can accelerate their SaaS deployments while minimising costs and maximising business impact.