What’s Fueling SaaS Growth in PH and ASEAN? AI, Data, and the Next Growth Wave

At this year’s SaaScon PH, we gathered to explore how SaaS companies can survive and thrive in the age of AI. Southeast Asia’s SaaS market is growing fast. The Philippines alone could see its SaaS industry quadruple in size by the end of the decade.

But with that growth comes the pressure to build smarter, move faster, and stand out in a crowded space.

In his keynote session, Anthony Oundjian, Managing Director and Senior Partner at Boston Consulting Group (BCG), laid out what it really takes for founders and operators to scale successfully in this new chapter of SaaS.

Let’s take a closer look at the key insights.

The SaaS industry in Southeast Asia is still in hypergrowth mode. According to Anthony, it’s expected to grow by 22% every year for the next five years. That puts the region on track to become a $9 billion market by 2030.

In the Philippines, the market is much smaller for now at around $240 million as of last year. But it’s growing fast too. Local SaaS companies are projected to help push that number closer to $1 billion by the end of the decade.

Anthony shared four major drivers behind SaaS adoption in the region.

1. Lower Cost and Faster Deployment

SaaS is more affordable than many traditional systems. It’s also faster to roll out. This helps SMEs and large companies test and scale new tools without long planning cycles.

2. Lack of Technical Talent

In the Philippines and across the region, the lack of in-house tech talent is a major challenge. Many businesses struggle to hire engineers and developers. This is pushing companies to look for tools that don’t require much coding or heavy IT involvement.

3. Demand for Built-In AI

According to Anthony, AI is now one of the top three tech priorities for 80% of companies in Southeast Asia. Tools that come with built-in AI are more likely to get adopted, especially if the AI helps improve efficiency, automate workflows, or create better insights.

We’ve seen the same trend at Sprout. That’s why we continue to expand our AI-driven tools, helping HR teams gain deeper insights without needing complex data work.

4. Simple, Predictable Setup

Companies are still cautious about long, expensive tech rollouts. Many remember the delays and challenges of older ERP systems. SaaS offers a better way forward with tools that are easy to test, launch, and expand over time.

Growth is picking up but so are the risks and roadblocks that come with it.

Despite the steady climb, several barriers are still slowing down SaaS adoption in the region. Anthony shared three key challenges companies are working to overcome.

1. Security and Compliance

As more businesses move sensitive data to the cloud, trust becomes critical. Anthony shared that “75% of the companies in the region say that more than 40% of the data they have in the cloud are sensitive.” This number has jumped sharply from just a few years ago.

With stricter regulations and growing user expectations, compliance becomes a baseline requirement. Companies need to know their data is safe, and that providers are committed to protecting it.

2. Industry-Specific Needs

Companies today want more than general tools. They need solutions tailored to their industry or function, especially in HR, legal, and finance.

This trend is pushing providers to build products that go deep into real use cases, not just broad features.

For us at Sprout, this has always been the focus: developing tools that work for Philippine HR teams, not just around them.

3. Integration Challenges

More companies are using a growing mix of tools across departments. If a new system doesn’t connect smoothly, it’s off the table.

Anthony made this clear: “90% will not consider a product if it cannot connect to either their existing system or other future decisions.”

That’s why interoperability is a must. Products need to be open, flexible, and easy to integrate.

These challenges remain, but they’ve also opened the door for smarter solutions, especially those powered by AI.

Generative AI is already reshaping how SaaS products are built and how people use them. Anthony shared that 77% of SaaS companies have either launched AI features or have them in their roadmap.

This shift is happening fast because AI tools now deliver real, measurable value. “AI capabilities can really, really streamline some tasks by 50 to 60%,” he said. In sales, it can even lead to double-digit growth.

He gave clear examples of how companies are already using AI:

• Copilot tools that review assignments, summarize text, and pull out key insights
• Personalization engines that offer recommendations based on real-time data
• Content generators for marketing teams, legal drafts, or HR communications
• Dashboards that learn and adapt to help users make better decisions faster

Anthony also pointed out how AI is shaping customer expectations. Users now look for software that can learn, adapt, and improve over time. They want smarter systems that can help them work faster and more accurately without adding complexity.

For SaaS providers, this means AI is now a must-have feature. The real edge lies in how clearly and intentionally it’s applied.

With so many SaaS products entering the market, execution now matters more than ever.

Anthony highlighted three areas that separate successful companies from the rest:

1. Smart Pricing Models

More companies are shifting to usage-based or hybrid pricing. This helps customers try the product, use it at their own pace, and scale over time.

It’s a flexible model and one that supports long-term growth.

2. Strong Customer Success

Support and onboarding are critical. It’s not enough to have a good tool. You need to guide users through setup, training, and everyday use.

Localization also plays a role. Providing guides in local languages and aligning with local policies helps improve adoption.

3. Strategic Partnerships

Working with the right partners, whether they’re global cloud providers or local banks and telcos, can help SaaS companies scale faster and reach more customers.

Partnerships can also help build trust and credibility, especially in new or underserved markets.

Building a smarter SaaS business starts with better tools, sharper insights, and the right support. Whether you’re streamlining HR, making sense of data, or preparing for what’s next, we’re here to help.

Explore more insights on our blog, thought leadership materials, and upcoming events.

Let’s power the future of work, together. Book a meeting with us today!