Delays in SaaS Implementations are Costing Indian Enterprises in Crores : Study

Chennai : As businesses continue investing in SaaS solutions to drive digital transformation, modernise operations, and enhance agility, the speed of implementation has become critical. Implementation delays remain a significant barrier, preventing businesses from realising the full value of their digital investments. A new IDC study titled ‘IDC State of SaaS Adoption in India Survey 2024’, commissioned by Zoho, a global technology company headquartered in Chennai, reveals that 75% of Indian enterprises that have adopted SaaS solutions since 2020 have encountered implementation delays, resulting in an average timeline overrun of 57% and cost overrun of 43%. These setbacks have led to an average loss of ₹5.6 crore in missed business opportunities, in addition to impacting employee productivity, customer experience, and competitive positioning.

 

“The ability to deploy SaaS solutions efficiently is no longer just an IT priority—it is a business necessity,” said Sharath Srinivasamurthy, Associate Vice President, IDC India. “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.”

“At Zoho, we recognise that enterprises need technology that delivers immediate impact without prolonged deployment cycles,” said Mani Vembu, CEO, Zoho. “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 effort.

 

The Business Impact of SaaS Implementation Delays

 

Delayed SaaS implementations create cascading effects, affecting both ongoing and future digital transformation initiatives. As per the study, 92.5% of Indian enterprises recognise that timely implementation is critical, while the remaining consider it somewhat important. The study found that 67% of enterprises reported increased costs due to extended deployment timelines, making implementation overruns a direct financial burden. 53% of the respondents indicated that delays hindered digital transformation progress, slowing down innovation and business growth. Additionally, 48% of enterprises experienced customer dissatisfaction, while 46% faced missed business revenue and opportunities, impacting overall business performance.

 

The cost overrun was highest for financial and accounting (F&A) solutions (60%), as per the study. F&A solutions were adopted by 66% of the respondents. Overruns in F&A can cause delays in key processes like invoicing and payment processing and can result in significant penalties and non-compliance risks, driving up costs, as per the study.

Reasons for Delays and Industry-Specific Challenges

 

Across industries, customer experience solutions were the most implemented post-pandemic (87%), with an average 51% timeline overrun. However, email and collaboration solutions saw the highest time overrun at 68%, followed by legal solutions at 61%. These delays were primarily due to a lack of dedicated resources, as enterprises assumed these solutions required minimal customisation, leading to misallocated implementation efforts.

The primary causes for implementation delays include project management inefficiencies (47%), followed by unexpected integration or security challenges (38%), talent shortage (38%), and technical complexities in the new solution (38%). These obstacles slow down digital transformation efforts, escalate costs, and disrupt business processes, ultimately delaying the expected return on SaaS investments, as per the study.

 

Industry-Specific Impact

Healthcaresaw 90% of enterprises implementing CRM, 83% adopting BI and analytics, and 70% deploying F&A solutions. 63% of healthcare enterprises reported increased costs, while 58% faced reduced productivity and 58% reported customer dissatisfaction, often requiring manual interventions to maintain critical services.
Financial Servicesinvested heavily in CRM (85%), F&A (83%), and email and collaboration (63%). 75% of enterprises reported increased costs, 60% faced disruptions in digital transformation initiatives, and 55% experienced customer dissatisfaction due to prolonged implementation timelines.
Manufacturing, driven by Make in Indiaand Production Linked Incentive (PLI) schemes, saw CRM (92%), BI and analytics (79%), and HRMS (62%) as top implementations. 72% of enterprises reported increased costs, 60% saw delays impacting digital transformation progress, and 41% experienced revenue losses.
Retail, accelerated by ONDC (Open Network for Digital Commerce), saw CRM (80%), F&A (67%), and email and collaboration (63%)as the most implemented solutions. 61% of enterprises faced revenue losses, 58% reported higher costs, and 51% suffered productivity declines, directly impacting profitability.