7 minute read

Modernizing legacy systems and moving to cloud-based software-as-a-service (SaaS) technologies is ubiquitous across industries, and government is no exception. But, it’s important to evaluate your organization’s unique needs as you consider SaaS options.  As a cloud-based SaaS company, we’ve seen our fair share of homegrown systems, often built out of frustration with existing tools in the marketplace. In this brochure, we outline the benefits SaaS can bring to your organization to support your IT modernization strategy.

First, a quick primer on SaaS. Software-as-a-Service or “SaaS” means you pay a licensing fee to use software developed outside of your organization. The SaaS company is responsible for delivering the agreed-upon technology (usually defined in a Statement of Work), training and set up, any custom work, and the ongoing maintenance of that software.

SaaS for Government: What Makes It Different

Government agencies face unique challenges that commercial organizations simply don’t encounter. According to Gartner’s 2024 research, 63% of government cloud computing initiatives succeed, but failure rates are nearly triple the private sector average due to inadequate planning.

Key Government SaaS Requirements:

• FedRAMP compliance for federal agency security standards
• Data sovereignty controls with clear geographic boundaries
• Audit trail capabilities supporting transparency obligations
• Multi-level approval workflows built for government processes

Modern government SaaS platforms are purpose-built to meet these demands. FedRAMP-authorized solutions provide the security baseline federal agencies require, ensuring your data stays protected within approved cloud environments.

What to Verify with SaaS Providers:

• Where exactly your data will be stored and processed
• How they handle compliance reporting requirements
• Their experience with government security frameworks
• Integration capabilities with existing government systems

Commercially available SaaS solutions offer agility, security, compliance, mobility, and reduce the dependence on IT and developers. SaaS technology also provides organizations with new features and functionality on a regular cadence, enabling organizations to stay up to date with industry best practices in software.

Some organizations choose to build their systems in-house in an attempt to control the configuration and keep costs low. Unfortunately, most homegrown systems quickly become outdated “legacy” systems due to ongoing, difficult maintenance requirements and a lack of IT resources necessary for upkeep. While legacy systems may “get the job done,” they almost always lack the latest features and functionality offered by modern SaaS companies.

Other challenges with homegrown systems that must be considered are governance, compliance, calendars, market factors, workflow, approval notification, delegation, access rights, user groups, integrations, and system performance , just to name a few.

Prioritize Your Time Wisely

Stay focused on policy, not paperwork. Spend more time researching and evaluating the policy landscape by taking advantage of robust research, collaborative drafting, engagement, and analytic modules built by your SaaS provider. When your team doesn’t need to worry about the technology, you can dedicate more time to subject area expertise.

Here is a more in-depth look at the benefits of SaaS over homegrown systems.

Free Up Technical Resources

Research shows that IT departments spend the majority of their time fixing their current systems rather than driving innovation. SaaS providers take responsibility for platform maintenance, security updates, and new functionality releases.

Benefits for Government IT Teams:

• Reduced maintenance overhead – no more server patches or software updates
• Predictable support costs instead of emergency fixes
• Access to specialized expertise without hiring additional staff
• Focus shift to strategic projects that advance your mission

Seamless Integration Strategies 

Government-focused SaaS providers understand that you can’t simply “rip and replace” legacy systems overnight. According to CGI’s government modernization report, successful implementations use phased approaches that:

• Start with pilot programs in single departments
• Maintain parallel systems during transition periods
• Provide robust API connections to existing infrastructure
• Offer data migration support with minimal downtime

Administration and support for homegrown systems are largely dependent on your IT team. We all know that IT turnover happens often in government, meaning institutional knowledge is frequently lost and maintenance overhead grows exponentially over time.

Resolve Support Issues Faster

Internal issues can often take a while to resolve with legacy systems, whereas SaaS vendors are required to solve a problem within a specific timeframe. This allows your organization to stay focused on the real policy tasks at hand, not distracting issues with an unknown fix date.

Government-Grade Support Standards 

Government operations can’t afford downtime during critical policy deadlines or public emergencies. Look for SaaS providers who offer government-specific service level agreements that understand the urgency of your work. This includes guaranteed response times, escalation procedures, and support staff who are familiar with government compliance requirements.

Over time, the legacy system turns into a repetitive, complex headache. Keep in mind that if the programmers who built it leave, the institutional knowledge leaves with them and is lost for those using the system.

Accountability You Can Count On 

Government SaaS providers maintain detailed incident logs and resolution documentation that support your accountability requirements. When issues arise, you’ll have clear visibility into resolution progress and the ability to report status to stakeholders. This is something that’s often impossible with homegrown systems where internal IT teams juggle multiple priorities.

Stay Modern And Innovative

To stay ahead of the curve, SaaS organizations continuously innovate. Many government organizations might not have the time or resources to do the same. Look for a SaaS provider committed to innovation and ask about their innovation pipeline.

Innovation Within Compliance Frameworks Government SaaS providers understand that innovation must happen within strict compliance boundaries. When new features like AI-powered search or automated workflows are introduced, they’re designed with government transparency and accountability requirements in mind. This means you get the benefits of cutting-edge technology without compromising your compliance posture.

Preventing Shadow IT Modern SaaS platforms provide the functionality your staff needs within approved, secure environments. This reduces the temptation for employees to seek unauthorized solutions, helping you maintain better control over your data and security landscape while still empowering your team with modern tools.

Build a foundation for the future by investing in SaaS technology that allows your organization to scale with the rising demand for modern, collaborative workflows and tools.

Save Money In The Long Run

SaaS technology comes with annual costs, but the long-term cost savings are worth it. Not having to staff, build, fix, and maintain an internal system always pays off.

Depending on the workflows, complexities, number of users, etc., homegrown systems can have large upfront costs. Besides the infrastructure such as the hardware, software operating system, runtime environments, backup, storage costs, and constant upgrades, they also require a lot of builds and test effort compared to cloud-based technologies.

Navigating Government Procurement

Government procurement processes exist to ensure accountability, fair competition, and responsible use of public funds. The right SaaS provider will work with these processes, not around them.

What to Look for in RFP Responses When evaluating SaaS vendors, prioritize those who demonstrate deep understanding of government requirements. Look for detailed security documentation, clear compliance certifications, and specific examples of how their platform addresses government workflows. Vendors who provide vague or generic responses likely haven’t invested in understanding your unique needs.

Pilot Programs That Work Many successful government SaaS implementations start with focused pilot programs. Consider beginning with a single department or specific use case that can demonstrate clear value quickly. This approach allows you to validate the solution’s effectiveness while building internal champions who can support broader adoption.

Contract Considerations Government SaaS contracts should address data ownership, security incident response, compliance reporting, and transition assistance. The best vendors will proactively discuss these topics and provide standard contract language that addresses common government concerns.

Change Management for Government Teams

Technology adoption in government requires more than just technical implementation, it requires organizational buy-in and cultural change.

Building Stakeholder Support Start by identifying the pain points that resonate most with your stakeholders. Whether it’s faster policy updates, better citizen services, or reduced administrative burden, connect SaaS benefits to outcomes your leadership cares about. Successful implementations often begin with champions who can speak to both the technical benefits and mission impact.

Training That Sticks Government employees bring diverse technical backgrounds and varying comfort levels with new technology. The most effective SaaS implementations include comprehensive training programs that meet people where they are. Look for providers who offer role-based training, ongoing support, and clear documentation that your team can reference long after initial implementation.

Measuring Success Government success metrics go beyond typical business KPIs. Track improvements in citizen response times, policy accuracy, compliance adherence, and staff satisfaction. These metrics help demonstrate value to stakeholders and support future technology investments. When your SaaS solution delivers measurable improvements in government operations, it becomes much easier to justify continued investment and expanded adoption.

The transition to modern SaaS technology represents an opportunity to not just improve your current processes, but to fundamentally enhance how your organization serves the public. With the right approach, SaaS adoption becomes a catalyst for broader operational improvements that benefit both your team and the citizens you serve.

Over time, SaaS technology for the policy lifecycle can keep costs down and increase ROI. Incorporating SaaS into your modernization strategy helps you focus on your most important tasks at hand, and allows SaaS providers to empower you in your role.