New Delhi: Researchers from IIM Lucknow, Amritsar, and Kashipur have collaborated to create a framework aimed at guiding the adoption of Software-as-a-Service (SaaS) technologies in India’s capital markets and banking sectors.
Slow SaaS Adoption in Regulated Sectors
While SaaS cloud-based services delivering software over the Internet has gained popularity globally, its adoption in India remains limited in highly regulated industries. Concerns over data security, privacy, and compliance with strict regulations are primary barriers.
The research, published in the Journal of Organisational Computing and Electronic Commerce, investigates these challenges and provides insights into managing risks associated with SaaS adoption.
Risk-Based IT Governance Framework
The study introduces a risk-based IT governance framework tailored for organisations in regulated sectors. Led by IIM Lucknow professor Arunabha Mukhopadhyay, the research identifies how management decisions on SaaS adoption are influenced by factors such as risk tolerance, data security measures, and compliance requirements.
“Our findings show that decisions about adopting SaaS depend significantly on how leadership evaluates risks like data breaches and loss of control,” said Mukhopadhyay. The research team also includes Swati Jain from IIM Amritsar and Shubhendu Dutta from IIM Kashipur.
Key Insights for Decision-Making
The framework enables organisations to assess risks systematically. If risks are considered high, it suggests steps to mitigate them before proceeding with adoption. For manageable risks, firms can move forward with the implementation.
A case study of a capital market firm highlighted in the research underscores how organisations balance technology evaluation with risk management. The framework’s practical application could assist SaaS providers in aligning their offerings with the specific needs of regulated industries, addressing security and compliance concerns.
Implications for BFSI and Capital Markets
For banking and capital market firms, the research provides actionable strategies to navigate SaaS adoption confidently. By focusing on risk assessment and mitigation, the study helps organisations make informed decisions in an increasingly digital landscape.
This research marks a step forward in understanding technology adoption dynamics in India’s heavily regulated sectors.
