SaaS tools have revolutionized how teams work, offering flexibility, scalability, and countless options tailored to specific needs. But with this convenience comes the challenge of managing subscriptions across a company. Without proper approval processes, SaaS sprawl can drain budgets, compromise security, and create inefficiencies.
I’ve experienced firsthand how chaotic it can get when teams subscribe to tools without a clear approval framework. Over time, I learned that an effective approval process isn’t just about saying “yes” or “no” to a subscription request—it’s about creating a system that aligns needs, budgets, and security across the organization. Here’s what worked for me and what I wish I’d known earlier.
1. Start with a Centralized Approval Workflow
One of the best ways to prevent SaaS sprawl is by centralizing the approval process. Involving IT and finance early ensures every new subscription is evaluated for:
- Security: Does the tool meet company standards?
- Compliance: Will it create risks in regulated industries?
- Budget: Is it a justified expense compared to existing tools?
What worked for me was looping in these departments before any purchase was finalized. IT could evaluate technical fit and security, while finance ensured the tool aligned with budget priorities. This kind of cross-departmental collaboration prevents unnecessary subscriptions and catches redundancies before they become costly mistakes.
Having clear workflows is essential. When approval is scattered, requests can fall through the cracks, or worse, tools can be adopted without proper oversight. Centralizing this process and communicating it to all teams sets a solid foundation.
2. Break Down Silos: Collaboration is Key
Collaboration between departments can make or break a SaaS management strategy. Here’s an example:
The marketing team signed up for Buffer to manage their social media campaigns. It seemed like the perfect solution at first. However, a few months later, IT flagged that Buffer didn’t meet the company’s security standards. Meanwhile, finance discovered that Sprout Social—already in use by the customer success team—offered similar features under an enterprise license, which could have accommodated the marketing team at no extra cost.
This lack of communication resulted in duplicated expenses, compliance risks, and unnecessary frustration.
Aligning teams early prevents situations like this. Some steps that worked for me included:
- Hosting monthly cross-departmental check-ins to discuss upcoming needs.
- Creating a shared communication channel for SaaS-related requests.
- Ensuring all teams understood how the approval process worked and who to involve at each stage.
3. Consider SaaS Management Tools for Oversight
While I didn’t rely on SaaS management tools during my journey, I can see how platforms like Torii, Zylo, Blissfully, and BetterCloud might make managing multiple subscriptions easier. These tools are designed to provide:
- A consolidated view of all subscriptions.
- Insights into usage, costs, and compliance.
- Tracking for renewals and potential redundancies.
Even if you’re not ready to use a dedicated platform, the principle of having a single, organized system to track everything applies. Whether it’s a shared document, an internal tool, or specialized software, visibility is key.
4. Regular Audits are Non-Negotiable
Even with an approval workflow in place, subscriptions can creep up over time. That’s where audits come in.
I’ve found that quarterly reviews work best for evaluating the current SaaS landscape. This includes:
- Identifying unused licenses or subscriptions.
- Checking for redundancies (e.g., two tools that do the same job).
- Ensuring that only active employees have access to tools.
One audit revealed we were paying for a tool long after the team that used it disbanded. It was a simple oversight but highlighted the importance of regular reviews.
5. Set Clear Policies and Train Your Team
It’s one thing to establish a process—it’s another to ensure everyone follows it. Early on, I assumed that creating a policy would be enough to prevent rogue subscriptions. I was wrong.
To make an approval process stick, it’s critical to:
- Write clear policies that outline the steps and criteria for new SaaS subscriptions.
- Train employees on why the process exists and how to follow it.
- Regularly remind teams of the policy, especially during all-hands or department-specific meetings.
When employees understand the “why” behind a process, they’re more likely to follow it. And when they don’t, having a system in place to catch unauthorized subscriptions is crucial.
What I Wish I’d Done Sooner
Looking back, I would’ve implemented these strategies much earlier:
- Centralized tracking: Before things got out of hand, I should’ve set up a single source of truth for all subscriptions.
- Better communication: I underestimated how often teams work in silos. Regular collaboration could’ve avoided a lot of duplication.
- Proactive audits: By the time we identified some of the redundancies, we’d already spent thousands on unused tools.
Final Thoughts
Building an effective approval process for SaaS subscriptions is about more than preventing chaos—it’s about creating a system that empowers teams to get what they need without compromising security, compliance, or budget.
It’s not a “set it and forget it” process. It requires ongoing collaboration, regular reviews, and a commitment to transparency. But once you have it in place, the benefits are undeniable: lower costs, fewer surprises, and smoother operations.
If you’re grappling with SaaS sprawl or trying to establish better approval workflows, I hope my experiences can help. And if you’re curious about tools that can make this process easier, there’s plenty out there to explore.
Want to gain better control over your SaaS subscriptions and prevent sprawl? Learn more at www.cenplify.com