News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | SaaS Security and AI Personalization: Key Drivers of Tech Spending in

That’s the market; let’s talk about technology spending.

The Annual SaaS Security Survey Report 2025 by Adaptive Shield reveals that organizations are increasingly prioritizing SaaS security, with increased investment and dedicated security teams. Companies have improved their SaaS security capabilities but still face challenges with misconfigurations and visibility into security risks. However, SaaS security investment is paying off, as the number of security incidents has decreased compared to the previous year.

Echoing that, according to a survey by the Cloud Security Alliance, 70% of enterprises are prioritizing investment in SaaS security, with dedicated teams being established to secure SaaS applications. Despite economic instability, organizations increased investment in SaaS security, adding headcount and growing budgets. The survey also found that organizations have improved SaaS security capabilities and visibility into their SaaS applications. However, challenges remain, such as achieving visibility into business-critical apps and addressing misconfigurations.

According to a study by Information Services Group (ISG), enterprises that implement business process outsourcing (BPO) programs can achieve an average of 15 percent savings compared to in-house operations. The study also found that cost savings are the primary motivator for outsourcing, with enterprises seeking more cost savings, innovation, and improved customer experience from their BPO programs. While BPO has been successful in delivering cost reduction and efficiency, enterprises are demanding further cost and efficiency savings. The study also highlighted the anticipated impact of AI on reducing external staffing in outsourced operations.

According to the “State of Personalization 2024” report from Twilio Segment, 89% of B2B and B2C directors believe that ethical use of AI can provide a competitive advantage. Additionally, 86% expect AI to support a shift from reactive to predictive personalization. The report also highlights other data points, such as the belief that AI will change personalization strategies and the expectation that AI chatbots will have the most impact on personalization in the next five years.

Why do we care?

So, SaaS security on the rise.   This makes sense as SaaS continues to grow – I’m not sure this should be viewed as entirely new spend. I’d posit that some of this spend is reallocation.  

That said, I’m more interested in the BPO work, particularly in a world of data and AI.  Investing in AI-driven personalization strategies can help businesses move from reactive to predictive approaches, enhancing customer engagement and satisfaction.   And when one can tie it back to savings – 15%, for example – there’s reason to invest.  

 

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