The Ultimate Guide to SaaS Procurement in 2025

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Do you find managing your procurement process difficult? Are you struggling with quotes, researching vendors, negotiating, and understanding compliance regulations?

Don't worry; you're not alone.

Managing your entire SaaS procurement process can be daunting, and organizations often overlook the opportunity to streamline it.

But on the bright side, there is an easier way to take the sting out of SaaS buying: procurement automation and procurement outsourcing are ways organizations can explore in 2025.

In this guide, you will learn about SaaS procurement, including a checklist, common challenges, and best practices to overcome them.

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TL;DR

• SaaS procurement involves evaluating, selecting, negotiating, and managing contracts to ensure organizations acquire the right apps at the best price.
• Procurement is a strategic process that includes vendor selection and contract management, whereas purchasing is simply the transaction of buying a product.
• The ideal procurement process includes assessing team needs, researching vendors, negotiating terms, onboarding the software, tracking performance, and managing renewals.
• Key challenges in SaaS procurement include selecting the right vendor, managing security, dealing with shadow IT, integrating software, ensuring transparency, and meeting deadlines.
• CloudEagle.ai automates workflows, improves transparency, provides vendor tools, and integrates with Slack to streamline the procurement process.

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1. What is SaaS Procurement?

SaaS procurement is the process of identifying and purchasing the best SaaS applications for an organization at the right market cost. It includes conducting market research, evaluating compliance and security requirements, selecting vendors, negotiating contracts, signing agreements, and tracking renewals.

SaaS procurement helps organizations purchase the right apps that fit their objectives while focusing on pricing, flexibility, security, scalability, and adaptability.

A. Procurement Automation

Most organizations still rely on a manual SaaS procurement process, and they often face procurement delays, security and compliance issues due to poor vetting and research.

This is where organizations need procurement automation to effectively automate repetitive tasks and focus more on their strategic tasks.

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2. What is the Difference Between Procurement and Purchasing?

"Buying a product or a service is not procurement; that is purchasing. Procurement is more multifaceted! Procurement will assess needs, define requirements, comb the market, and onboard vendors against set criteria”. - Victor Manan Nyambala

Procurement and purchasing are sometimes misunderstood as the same thing. However, they are not. The process of acquiring products or services is called procurement, including the analysis of requirements, vendor research, negotiation, and contract signing.

The SaaS purchasing process is not the same as the procurement process. It is the act of buying a product, a segment of the overall procurement process.

While the two have similarities, such as negotiating and research, procurement is far more strategic and data-driven. It provides advantages such as improved quality control and management of supplier relationships, whereas purchasing is focused on short-term objectives.

Want to understand this better? Check out a detailed blog to learn more about Procurement vs. Purchasing.

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3. What is the Ideal SaaS Procurement Process?

A well-defined SaaS procurement process ensures enterprises pick the correct apps that efficiently fit their goals. Here are the key steps in the ideal SaaS purchase process:

A. Optimizing the End-to-End Lifecycle

Optimizing the entire SaaS procurement process is important to ensure the app you choose works well and adds value. This process includes everything from understanding what your organization needs to managing the renewal or expansion of your contract.

Improving each step helps you get more value from your SaaS, save money, and make it easier for teams to use. The goal is to keep things simple and ensure everyone is working towards the same goals. This takes teamwork, clear steps, and regular check-ins to keep up with changes.

B. Creating a Collaborative Cross-Department Approach

Choosing the right SaaS app needs input from different departments. Each team, like IT, HR, finance, and operations, has unique needs, so it’s important to listen to everyone. Involving everyone early helps make sure the chosen solution works for all teams.

This also ensures the software works well with your existing systems, addresses pain points, and aligns with your business goals. A collaborative approach leads to smoother implementation and higher adoption rates across departments.

C. Assess Team Requirements

Before buying a SaaS app, you need to understand what it will do for you. Review the team's current processes and find areas that need improvement. 

Identify the key features the software should have. This helps the procurement team focus on what’s needed, avoid extra costs, and get a better return on investment.

D. Perform Detailed Market Research

After defining the requirements, the next step is to research the market. Look at different SaaS vendors and choose the one that fits your needs best. 

Check their features, reputation, price, customer service, and more. 

Read reviews on sites like G2 and Capterra. Listen to what people are saying online and talk to peers to get real experiences with the vendors.

E. Select the Right Vendor

After the research and shortlisting, the next step is to choose a vendor. This includes assessing customer service, price structure, and any unique needs for the software's purchase and/or implementation. 

This allows organizations to find a dependable provider who satisfies all their requirements — and enables them to get maximum value from their IT investments.

Here’s how you select the right SaaS vendor →

F. Negotiate the Contract And SLAs

After selecting a vendor, the next step in the Saas procurement strategy is negotiating a contract with the selected vendor. 

This includes negotiating the pricing, payment terms, renewal clauses, indemnification, termination, data ownership, security, and many more terms and conditions.

SaaS agreements are legally binding contracts between the vendor and the buyer, so you must not overlook this process. Have a legal team carefully review the clauses and terms before signing the contract.

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Check out this SaaS agreement checklist to prepare yourself for the process.

G. Onboard With the Vendor

After finalizing the contract, the next step is onboarding with the provider. This means integrating the software, training your team, and ensuring a smooth transition. 

Tasks include setting up user accounts, securely transferring data, and training employees. Clear communication with the vendor is key to a successful onboarding.

H. Track Performance

Once the software is running, it’s important to monitor it regularly. This includes backing up data, tracking user activity, and checking system performance. 

Stay updated on any major upgrades or changes to avoid issues and ensure the software continues to meet your goals.

I. Renewal and License Expansion

After using the service for a while, you’ll need to decide whether to renew or stop using it. Evaluate how well it works, its cost, and if it still fits your needs. A formal review process will help make this decision during renewal talks.

J. ‍Predictive Analytics for Future SaaS Needs

Predictive analytics helps plan for future SaaS needs. By looking at current usage and company growth, you can predict what’s needed next. It also helps identify gaps in your software and guides decisions on upgrades or new tools, ensuring you stay ahead of trends and support long-term success.

4. SaaS Procurement Challenges that Procurement Teams Face

Procurement teams face several challenges in SaaS procurement. Here are some key issues they encounter during the process:

A. Choosing the Right Saas Vendor

Finding an appropriate vendor who fulfills the organization's needs and aligns with its principles and goals might be difficult. Making an informed selection requires extensive assessment, comparing features, cost, support, and vendor reputation.

One small step can lead to selecting a subpar vendor, leading to poor communication, collaboration, low-quality product, and outcomes. The right approach is to conduct a detailed vendor research before selecting the SaaS vendor.

B. Data Security and Compliance Issues

83% of enterprises report that their employees store clients’ sensitive data on third-party cloud services without permission.

SaaS applications store sensitive information such as customer details, financial data, passwords, etc. These can be readily compromised in the event of a data breach or during a malware attack.

Purchasing the right SaaS application that adheres to all necessary security audits and rules is a major challenge. To overcome this issue, a SaaS management platform can be used. This platform will automatically detect any suspicious apps. It will also help you make the right choice.

C. Decentralized Purchasing or Shadow Purchases

On average, companies spend 15% more than they could on cloud SaaS services because of using apps they don’t need.

Decentralized purchasing, or Shadow IT, is a key concern in SaaS procurement and management. It refers to the purchase of SaaS applications without the authority of the IT, finance, or legal divisions. 

It not only increases SaaS spending but also causes various challenges like data breaches, the rise of duplicate applications, and compliance issues.

Here’s why you should be concerned about shadow IT:

• Shadow IT costs enterprises $3.4 million on average per year.
• 60% of enterprises have no visibility into shadow IT spending.
• 40% of enterprises have experienced a security breach because of shadow IT.

The key is to use a centralized SaaS procurement platform to streamline SaaS buying. This automatically prevents employees from going behind your back and purchasing apps independently.

D. Integration and User Adoption

Purchased applications should seamlessly integrate with your existing systems. If not, there is no point in using the application. 

The same goes for user adoption, too; if your users are finding it hard to get used to the new application, they’re not going it use it, resulting in application redundancy.

Application redundancies aren’t something to overlook. Here’s how you can overcome them →

E. Non-transparency in the Process

Transparency is another reason why manual procurement processes fail. It lowers the chance of accountability and delays the purchasing process. 

This, in turn, will frustrate the user who raised the purchase request, and they will proceed to purchase the app without IT approval. Shadow IT increases.

F. Time Constraints

Time is one of the major challenges for procurement teams, especially for a lean team. With many strategic tasks, the repetitive process of SaaS procurement takes up valuable time. 

Outsourcing the procurement process to a vendor can handle the purchasing and negotiation, freeing up your team to focus on more important tasks.

G. Managing Complex Vendor Portfolios

As companies grow, they often use multiple SaaS tools from different vendors, making it hard to track contracts, renewals, and pricing. Procurement teams need to keep vendor relationships organized in one place. They should look for duplicate services and ensure each vendor provides value. Monitoring vendor performance helps avoid extra costs and missed deadlines.

H. Ensuring Cost Efficiency Across Multiple Applications

With many SaaS tools, costs can add up quickly. Procurement teams should track subscriptions, avoid overlap, and negotiate better prices. As the company grows, licensing costs can increase, so it's important to ensure tools are still cost-effective. 

Regularly reviewing usage and spending helps avoid unnecessary costs and ensures the software delivers the right value.

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5. CloudEagle.ai - The Ultimate Saas Procurement Solution

CloudEagle.ai is a SaaS management and procurement platform that helps organizations automate and improve their SaaS buying process with its procurement workflow. With its extensive set of features and benefits, it transforms how organizations handle their SaaS purchasing strategy.‍

A. Customizable Intake Forms

CloudEagle.ai has customizable intake forms that make it easy for departments to request new software. These forms collect all the necessary information upfront, speeding up the approval process. You can tailor the forms to fit your organization’s needs, ensuring you get the important details for every request.

By gathering the right info from the start, procurement teams can make quicker decisions and process requests more accurately. These forms help reduce back-and-forth communication and streamline the entire procurement process.

B. Slack for Procurement

CloudEagle.ai integrates with Slack, making it easier for your procurement team to communicate with other departments. Teams can share updates, ask questions, and make decisions in real time, all within Slack.

By using the same tool your team already communicates on, CloudEagle.ai boosts efficiency and keeps everyone on the same page. Whether discussing a new vendor or tracking a purchase, Slack for procurement helps everyone stay informed and make quick decisions.

C. Quick Vendor Research

Finding the right vendor can take a lot of time and effort, but CloudEagle.ai's vendor recommendation engine simplifies this process. It allows you to research and compare potential vendors quickly based on their performance, pricing, and features.

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CloudEagle.ai shows insights into vendors' past performance, contract terms, and customer reviews. This helps your team understand the vendor’s reliability and avoid costly mistakes. By making vendor research easier, the tool ensures you choose the best vendor for your needs.

D. Streamlined Procurement Workflows

CloudEagle.ai makes the procurement process faster and more organized by streamlining workflows. Instead of handling paperwork, approvals, and communication manually, the platform automates many tasks. This leads to quicker approvals and a smoother procurement process.

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The streamlined workflows cut down on delays and keep everyone on the same page. CloudEagle.ai tracks requests and assigns tasks to the right people at the right time, helping your team stay organized and avoid bottlenecks.

Know how RingCentral consolidates SaaS management and procurement with CloudEagle.ai.

E. Outsourced Procurement

CloudEagle.ai offers an outsourced procurement service for companies that want to offload some or all of their procurement tasks. Expert teams will manage your SaaS purchases, saving time and resources. They handle negotiations, vendor management, and contract reviews.

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Outsourcing procurement lets your company focus on what it does best while ensuring SaaS purchases are well-managed and cost-effective. The experts also keep you updated on market trends and suggest solutions that fit your needs. It’s an easy way to get the best value from your SaaS investments.

Learn how Nowports secured 34% savings with CloudEagle's effective negotiation.

F. Streamlined Vendor Negotiations

Negotiating with SaaS vendors can be complicated, but CloudEagle.ai makes it easier. It provides helpful data on vendor prices, terms, and market trends, giving procurement teams an advantage in negotiations. This ensures you’re not overpaying for the software you need.

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CloudEagle.ai lets you compare different vendors and their contract terms. With this information, your team can make better decisions, leading to better deals and long-term savings. By simplifying negotiations, CloudEagle.ai helps you get the best value for your organization.

G. Real-Time Price Benchmarking

CloudEagle.ai offers real-time price comparisons, allowing you to compare prices from different vendors for similar services. This helps ensure you're paying fair prices and not overpaying for features that might be cheaper elsewhere.

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With up-to-date pricing data, procurement teams can quickly adjust purchasing decisions. Whether negotiating with current vendors or exploring new ones, CloudEagle.ai keeps you informed and helps you get the best deal.

H. Seamless Integration with Existing Apps

CloudEagle.ai integrates with over 500 SaaS apps, so it fits easily with the tools your company already uses. You don’t need to make big changes, and you can add new software without disrupting your workflow. It connects different platforms, letting data flow smoothly between apps.

By integrating with your existing tools, CloudEagle.ai reduces manual data entry and mistakes, making the procurement process faster and more accurate. Your team can continue using familiar tools while CloudEagle.ai adds new solutions without any hassle, saving time and effort.

I. Improved Transparency and Visibility

One of the main benefits of CloudEagle.ai is the increased transparency it brings to your procurement process. It gives you a clear view of all your SaaS contracts, pricing, and vendor performance. This helps you track how each tool is performing and how costs are adding up.

With all the information in one place, procurement teams can make better, data-driven decisions. It also helps identify inefficiencies, like overlapping services or unused tools.

Listen to what Eric Silver, Head of Procurement at RingCentral, says about how CloudEagle helped with app rationalization and team integration.

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6. Conclusion

SaaS procurement is important for any organization. This process helps you get the right apps at the right price. However, it can be complex and time-consuming with so many options available.

If your team doesn't have the time or resources to manage procurement, outsourcing it to experts like CloudEagle.ai can help. Whether you want to support your in-house team or leave it to the pros, CloudEagle.ai offers an easy, cost-effective way to manage SaaS purchases.

CloudEagle.ai helps you get the best deals, simplify processes, and improve efficiency. It saves time, cuts costs, and boosts productivity.

Book a free trial with CloudEagle.ai today to enjoy stress-free SaaS procurement while maximizing savings.

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