"Amid Global Economic Recession, SaaS Adoption is the Key to Maximizing Corporate Profitability and Efficiency"

Media Coverage

• Global Economic Downturn: SaaS as the Key to Growth

Warning signs are flashing across the global economy. Yet, there is one market that continues to attract attention—the Software-as-a-Service (SaaS) market. Overseas, the SaaS industry is already experiencing explosive growth. Forbes projected that the global SaaS market would grow from $199.9 billion in 2020 to $233 billion in 2021 and further to $271.7 billion in 2022. Among the 507 new unicorn companies worldwide in 2021, 117 were SaaS firms. In the same year, 27 SaaS companies, including Amplitude, Monday.com, and OLO, successfully went public in the U.S. market. Established SaaS giants such as Salesforce, Shopify, Zoom, and Workday have already demonstrated the sector's immense potential.

The Korean market is no exception. While global powerhouses like Oracle, SAP, and Google continue to dominate, local IT companies such as Naver and NHN, along with numerous startups, are entering the fray, intensifying the competition. According to Gartner, domestic spending on public cloud services in 2022 is expected to reach $4.79 billion (approximately KRW 5.92 trillion).

Why is SaaS garnering such attention? SaaS allows users to access remotely provided cloud-based applications while paying only for what they use on a monthly or annual basis. For users, cost savings are the most significant advantage. Since SaaS solutions can be accessed from anywhere with an internet connection, they enhance productivity and efficiency for businesses. Additionally, SaaS offers outstanding scalability, enabling companies to add functionalities and services as they grow. This makes it an attractive choice for businesses with limited resources, allowing them to focus on their products and services instead of investing heavily in traditional system infrastructure.

Now is also an opportune moment for SaaS providers. More and more enterprise software solutions are transitioning to the SaaS model. As digital transformation accelerates, demand for SaaS has expanded beyond traditional enterprise resource planning (ERP) and customer relationship management (CRM) systems to include collaboration tools, financial accounting, expense management, time and attendance tracking, and customer service management. SaaS companies are strategically targeting niche markets that legacy software solutions have failed to address. The COVID-19 pandemic further reinforced this trend by normalizing remote and hybrid work, solidifying SaaS as a mainstream business model.

Despite prolonged economic uncertainty, companies continue to seek opportunities for growth and reinvention. In these times, what strategies create a win-win situation for both users and providers? One viable approach is adopting SaaS solutions that maximize cost-effectiveness and operational efficiency. For providers, a well-developed SaaS product has the potential to reach global markets—even from an office on Tehran-ro, Seoul’s bustling tech hub. The key to navigating an economic downturn is finding momentum in a thriving market. In this fast-growing SaaS landscape, the path to breakthrough growth is clear—growth must be pursued in a market that is itself expanding.

Integrated Workforce Management Solution, Shiftee