Proving IAM ROI: A Guide for CIOs to Secure Budget Approval

CIOs face an uphill battle when getting approval for Identity and Access Management (IAM) budgets. The problem is that most founders and stakeholders lean towards the more revenue-driven aspects of the company.

Why is there a reason to add a new tool when the system is working just fine? Sales and Ad spend = profit! But an IAM seemingly does not change your bottom line!

High upfront costs and the technical nature of IAM, make the need for sound paranoid, and unnecessary and alienate anyone from a non-technical background.

Why is it Hard to Secure a Budget Approval for an IAM?

• Competing Priorities: Most businesses need to chase revenue so investing costs in ad spend, sales, or marketing budgets makes a lot more sense to the finance team.
• Sticker Shock: IAM’s upfront costs can seem prohibitive without clear examples of cost savings or growth enablement.
• Translation Gap: Explaining IAM’s technical value to business leaders often results in blank stares or skepticism. 
• Delayed Gratification: The benefits of IAM, while substantial, take time to materialize, further complicating budget justification. This means even if you know you need it! The benefit can be difficult to showcase beforehand!

But all of this can be boiled down to ONE word - Return on Investment. So How does IAM create ROI? Well, we cover that in detail below.

How Does IAM Software Provide ROI?

Reduces Administrative Costs

How? Firstly, IAM software simplifies how employees access systems, cutting down on repetitive tasks for IT staff. This means password resets and access requests, for example, are now automatic based on your policies saving both time and money.

Imagine a global enterprise where hundreds of employees request password changes daily—automation can cut this time to near zero, saving thousands annually. Moreover, it minimizes costly errors, such as misconfigured permissions that could lead to compliance violations or data breaches.

• This removes repetitive admin tasks like password resets, saving IT hours by automating them.
• Lowers the number of human errors that can result in costly mistakes.
• Lowers the need for a large IT team dedicated to user management.
• Frees up resources to focus on high-impact projects.

Wins Enterprise Clients by Meeting Security Demands

Large clients scrutinize vendors for reliable security practices before signing contracts. IAM demonstrates a commitment to protecting sensitive data and allowing compliance with stringent standards like GDPR, CCPA, or HIPAA. 

For instance, a B2B SaaS company can use IAM to improve client onboarding while meeting audit requirements and closing deals faster.

• Accelerates the deal cycle by proving compliance readiness.
• Builds trust, signaling your organization prioritizes security.
• Strengthens client relationships, paving the way for upselling.

Makes Scaling Your Business More Affordable

As businesses grow, managing a larger workforce and customer base without ballooning costs becomes critical. IAM’s scalable architecture allows easy user provisioning and centralized access controls, eliminating the need for hiring additional IT staff or overhauling infrastructure. Picture an e-commerce platform onboarding seasonal workers seamlessly without additional overhead.

• Simplifies user onboarding as your workforce expands.
• Reduces the need for costly manual interventions during growth.
• Supports a consistent security framework across all business units.
• Handles increased access demands without needing extra infrastructure.

Reduces the Risk of Compliance Fines

Compliance is a critical concern for businesses, and failing to meet requirements can result in hefty fines. IAM makes sure that only authorized users have access to sensitive data, helping maintain regulatory compliance. Automatic audit trails also make it easier to prove compliance during inspections, saving both time and money.

• Makes sure there are proper data access controls to meet compliance standards.
• Provides detailed audit trails for easier reporting and verification.
• Reduces the chance of violations that could lead to penalties.
• Keeps your business updated on changing compliance requirements.

Lowers the Risk and Remove the Cost around Data Breaches and Ransomware

Data breaches can cost businesses millions of dollars in recovery and lost trust. IAM systems reduce this risk by making sure that only authorized users access sensitive data. By using multi-factor authentication and other security features, IAM protects your business against ransomware attacks and other cyber threats.

• This prevents unauthorized access to sensitive systems and data.
• Adds multi-factor authentication for added security.
• Reduces recovery costs by mitigating the likelihood of breaches.
• Protects company reputation by maintaining customer trust.

How Do You Secure IAM Budget Approval?

Connect IAM to Ecosystem Challenges

Frame IAM as the backbone of your SaaS ecosystem. Highlight its role in simplifying complex integrations, reducing tool sprawl, and securing data across platforms. For example, demonstrate how IAM can improve user access across 20+ SaaS tools, reducing inefficiencies and reducing security gaps.

For instance, you can:

• Illustrate how IAM reduces SaaS sprawl costs by identifying redundant tools.
• Show how IAM mitigates risks from poorly managed third-party integrations.

Present a Roadmap Tailored to SaaS Maturity

CIOs must present a roadmap that accounts for their organization’s SaaS maturity. For early-stage companies, emphasize IAM’s role in building a strong security foundation. For mature enterprises, focus on its ability to address growing ecosystem complexity and compliance challenges.

Best practices:

• Break down the roadmap into phases aligned with SaaS adoption levels.
• Include milestones like achieving SOC 2 compliance or integrating critical tools.

Emphasize Metrics for Ecosystem-Wide Success

IAM metrics should capture its impact on your entire SaaS ecosystem. Track how it improves security, reduces operational overhead, and enables smoother integrations. Examples include reducing onboarding time for new SaaS tools or decreasing incidents of unauthorized access.

Effective metrics include:

• Reduction in SaaS integration timeframes.
• Improvements in compliance audit pass rates across platforms.
• Time saved in managing access requests for external tools.
  

Highlight the Cost of Ecosystem-Specific Inaction

Without IAM, SaaS ecosystems become chaotic and vulnerable. Highlight the risks:

• Shadow IT Proliferation: Unvetted tools increase security risks and costs.
• Operational Bottlenecks: Manual access management slows productivity.
• Regulatory Non-Compliance: Disjointed access controls lead to audit failures.

Infisign IAM is a Growth Engine for SaaS-Centric Enterprises

IAM is no longer just a security tool—it’s a strategic enabler for SaaS-centric enterprises. 

To secure budget approval, CIOs must emphasize how IAM supports the unique challenges and opportunities of modern SaaS ecosystems. The reality is that scaling your business needs BIG clients - and almost ALL of them need you to have better compliance, secure data pipelines, and frameworks that reduce the repetitive work and need for constant oversight.With Infisign, you get conditional access, MFA, and SSO frameworks to make your security systems both a lot more secure and quick - want to know more? Why not reach out for a free trial?