New research from Aaron Wallis Sales Recruitment suggests that, despite current macro-economic challenges, the SaaS sales sector is expected to continue growing significantly in 2023.
Key insights:
- The UK SaaS sector is forecasted to have revenue growth of +5.3% in 2023 contributing to a total predicted market size of £33.2 billion.
- 90% of IT leaders believe the economy will slow down, yet the majority have both seen their budget grow (52%) and are expanding their technology team headcount (56%).
- Aaron Wallis research suggests that there are over 8,000 SaaS sales professionals in the UK, with 2,100 SaaS specific businesses and over 200 more forecasted to be created in 2023.
- SaaS sales is a lucrative business with Aaron Wallis in-house data suggesting London Sales Directors in SaaS can take home over £200k p/a.
The growth of SaaS as a model
The SaaS sector has nearly doubled in size from 2016 to 2022 (£18.5B to £31.5B). This can be credited to a range of reasons such as the convenience and user-friendliness of SaaS services, the fact that many firms, specially SMEs, encounter challenges in investing in and taking care of on-premise software, and the trend towards more digitalized practices.
Additionally, SaaS solutions are available from any location and can be altered to meet changing business requirements.
One more factor is that many SMEs have problems with investing in on-premise software and managing it.
Finally, even for colossal budgets, SaaS can be simpler to approve in a company, due to regular payments rather than large upfront costs.
Robert Scott, Managing Director at Aaron Wallis Sales Recruitment said:
“Despite macro-economic challenges, it’s clear that SaaS is here to stay in 2023. Pretty much every major organisation in the world is going through some sort of digital transformation with budgets often committed from initiatives started in previous years. With the challenges in developing in-house solutions, SaaS is pivotal to the execution of digital processes.”