Adoption of software as a service: a qualitative case study in a state-owned company in South Africa

Abstract
Software as a Service (SaaS) is a type of cloud computing service which has capabilities that enable organisations to efficiently and effectively render business applications as well as deliver services to stakeholders via the Internet, in a secure manner. This service model has benefits as well as critical challenges which need to be considered by management when deciding to adopt or not to adopt SaaS. In South Africa (SA), organisations that are in the public sector, specifically state-owned companies, are also considering this maturing SaaS technology in order to improve service delivery to citizens and efficiencies whilst operating within a tight state budget and a highly regulated environment. This study developed an integrated conceptual framework underpinned by the Technology Organisation Environment (TOE) framework and the Institutional (INT) theory. This integrated framework was used to investigate organisational considerations in SaaS adoption and to identify the key factors which influence the decision to adopt SaaS, by means of a qualitative case study that was conducted in a South African state-owned company. Data for this research was collected from fifteen participants representing both business and IT units. The results of the study indicate that the factors drawn from the TOE framework and INT theory can be used to understand adoption of SaaS in state-owned companies in South Africa. Additionally, it was found that ten TOE factors could drive or hinder the adoption of SaaS in a state-owned company. The Security factor within the Technology context was found to be the most important SaaS adoption consideration in the case study site. This research paper is a unique attempt, to study SaaS adoption within a state-owned institution in South Africa, through the lens of an integrated TOE-INT conceptual framework, which could advance the Information Systems (IS) field. Furthermore, the conceptual framework could present practical implications; for practitioners it will highlight key factors to consider when faced with the decision to adopt SaaS, for the SA Government it could generate insights for creating a conducive regulatory environment (including national cloud adoption policies), and for SaaS service providers it could produce useful information for packaging SaaS solutions that are suited to state-owned entities in SA
Description
A research report submitted in fulfilment of the requirements for the degree of Master of Commerce (MCom) by Research in the field of Information Systems School of Business Sciences, Faculty of Commerce, Law and Management, University of the Witwatersrand
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