Imagine this: A marketing team misses a crucial campaign launch because they’re stuck waiting weeks for approval on an analytics tool. Frustrated, they bypass the process entirely, adopting unsanctioned software that introduces security risks and increases costs. This is shadow IT in action, and it’s a direct result of slow SaaS approval workflows.
According to Gartner, 30-40% of IT spending happens outside of IT oversight, much of it driven by employees frustrated with cumbersome approval processes. To avoid these pitfalls, IT and Finance must collaborate to create a streamlined workflow that balances speed, security, and cost control.
The Consequences of Slow Approvals
When SaaS approvals drag, the entire organization feels the impact:
- Shadow IT Proliferation: Employees adopt unsanctioned tools, creating security vulnerabilities and compliance risks.
- Missed Opportunities: Teams lose valuable time waiting for tools, delaying critical projects and missing time-sensitive discounts.
- Duplicate Spending: Uncoordinated purchases lead to overlapping tools and budget inefficiencies.
- Employee Frustration: Slow processes erode trust in internal systems and reduce morale.
An efficient approval workflow eliminates bottlenecks while ensuring IT and Finance work together seamlessly. Here’s how to get started:
- Centralize Requests
- Create a single system for all SaaS requests to ensure visibility across departments. This could be a procurement platform or even a shared form that tracks all incoming requests.
- Example: One company implemented a centralized SaaS request portal that automatically logged all submissions, providing real-time visibility into pending approvals for both IT and Finance teams.
- Automate the Workflow
- Use automation tools to route requests based on predefined criteria like cost thresholds or department needs. Automation reduces manual follow-ups and ensures no request gets stuck in someone’s inbox.
- Example: Tools like Zapier or procurement platforms can route requests under $5,000 directly to department heads while flagging larger purchases for Finance review.
- Define Clear Roles
- IT evaluates software for technical compatibility and security risks, while Finance assesses ROI and budget alignment. Establishing these roles upfront prevents confusion and speeds up decision-making.
- Establish Financial Thresholds
- Set clear financial thresholds to simplify approvals for smaller purchases while ensuring larger investments undergo proper scrutiny. For example, allow department heads to approve purchases under $1,000 while routing higher-cost items to Finance or IT leadership.
- Align on Business Goals
- IT and Finance should regularly align on broader business objectives like cost savings, operational efficiency, or compliance standards. This ensures every SaaS purchase contributes to strategic priorities rather than just meeting immediate needs.
To make SaaS approvals seamless, IT and Finance must work as partners rather than siloed teams:
- Shared Visibility: Use tools that provide both teams with access to real-time data on requests, budgets, and vendor performance metrics. Transparency fosters trust and reduces miscommunication.
- Joint Risk Management: Collaborate on compliance monitoring and vendor audits to ensure SaaS tools meet security standards without introducing unnecessary risks or costs.
- Executive Buy-In: Secure leadership support for streamlined workflows by emphasizing how faster approvals improve productivity while reducing risks and costs.
When IT and Finance collaborate effectively, businesses benefit from:
- Reduced Bottlenecks: Employees get access to tools faster, improving morale and productivity.
- Minimized Shadow IT: A transparent process discourages unsanctioned purchases while ensuring security protocols are followed.
- Improved Vendor Relationships: Coordinated purchasing strengthens vendor negotiations and reduces duplicate spending across departments.
- Strategic Procurement: Every software purchase aligns with business goals, delivering measurable ROI instead of draining resources.
Test automation today: Identify one low-cost SaaS tool in your organization’s pipeline and set up an automated approval rule based on its cost threshold or department need. Track how much time this saves over the next month compared to your current process.
For more insights on optimizing SaaS procurement workflows, visit www.cenplify.com.