The global software as a service (SaaS) market is poised for unprecedented growth, projected to soar from $358.33 billion in 2024 to $1,251.35 billion by 2034, according to a report by Precedence Research. This surge represents a robust annual growth of 13.32% over the next decade.
A growing demand for operational efficiency, transparency, and cloud-based scalability drives this expansion. Businesses worldwide rapidly adopt SaaS applications to streamline processes, enhance productivity, and reduce infrastructure costs.
North America currently leads the global SaaS market, accounting for 46% of the total share in 2024. The software segment dominates with an 85% share, while private cloud deployments and large enterprises contribute significantly to overall growth.
The flexibility SaaS offers allows users to sign up and start working instantly and continues to appeal to organizations of all sizes.
BPO industry embraces SaaS for enhanced efficiency
The rapid expansion of the SaaS market is influencing the business process outsourcing (BPO) sector. BPO providers increasingly integrate SaaS solutions to enhance service delivery, scalability, and operational efficiency.
Gartner projects that 70% of workloads will run in the cloud by 2028. Thus, cloud-based BPO services offer real-time access to operations, reducing the need for extensive on-premises infrastructure.
Moreover, BPO firms are adopting advanced technologies such as AI and automation to handle tasks such as data entry and customer support, enabling companies to focus on higher-value activities. This technological integration allows BPO firms to offer their clients more agile and cost-effective solutions.
Interactive EQ launches AI-powered talent assessment tool for SaaS teams
In response to the evolving needs of SaaS and BPO industries, Interactive EQ has launched SaaS IEQ, an AI-powered assessment tool designed to evaluate emotional intelligence (EQ) and soft skills within SaaS teams. This tool provides insights into how individuals think, react, and lead under pressure, aiding in better hiring decisions and leadership development.
Created by SaaS veteran and former Tekion executive Napo Rumteen, SaaS IEQ blends interactive video simulations with AI models to assess how candidates and employees respond to real-world business scenarios. The tool evaluates key areas such as situational awareness, empathy, business acumen, cultural fit, and problem-solving under pressure.
“SaaS IEQ goes beyond disposition—it objectively identifies and measures situational reactions, proactive action, and leadership potential of employees, specifically in the SaaS space,” Rumteen said.
Given the BPO industry’s reliance on human-centric services such as customer support and HR, tools such as SaaS IEQ can be instrumental in identifying and nurturing talent that excels in emotional intelligence, thereby enhancing service quality and client satisfaction.
SaaS IEQ is now available to companies of all sizes, and later this year, it plans to expand into the healthcare and hospitality sectors.
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Interactive EQ. (2025, April 9). Interactive EQ Launches SaaS IEQ, the AI-based Talent Assessment & Development Platform for SaaS. GlobeNewswire News Room. Retrieved from https://www.globenewswire.com/news-release/2025/04/09/3058530/0/en/Interactive-EQ-Launches-SaaS-IEQ-the-AI-based-Talent-Assessment-Development-Platform-for-SaaS.html
Briones, J. A. (2025, April 12). AI-powered EQ assessment platform launches for SaaS industry. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/eq-assessment-platform-launches-for-saas/
Ting, R. R. (2025, February 3). Exploring BPO Solutions for SaaS Product Development. Unity Communications. Retrieved April 16, 2025, from https://unity-connect.com/our-resources/bpo-learning-center/bpo-for-saas-development/
