Software as a Service, Part 1: Assessing the Demand for On Demand in Asian Banks

This Financial Insights report examines the software-as-a-service (SaaS) delivery model in the context of banks operating out of Asia/Pacific. The report considers how the SaaS value proposition may be evolving amidst the current economic malaise, while identifying key drivers and risk issues impacting the near-term outlook for SaaS adoption by the region's banks. The report draws upon insights gained from conversations with senior executives from banks in India, Indonesia, Malaysia, Singapore, Taiwan, and Thailand.

"From a cost-containment standpoint, SaaS is often positioned as an attractive approach to technology provisioning, particularly for banks whose IT budgets have come under growing scrutiny in a challenging business environment," notes Shawn Yip, analyst at Financial Insights Asia/Pacific. Shawn continues, "While Asia/Pacific banks are generally treading cautiously when it comes to embracing SaaS, there is a growing awareness that the advantages of an on-demand, subscription-based software provisioning model can extend beyond cost savings. However, risk issues must be adequately addressed and a significant amount of education and handholding is required on the part of service providers for the SaaS delivery model to ultimately fulfill its promise."