Most modern organisations run on a growing stack of SaaS (software-as-a-service) applications. New tools appear constantly, each promising to save time, automate a painful process, or improve collaboration. When something looks useful, the instinct is often to click install and deal with the consequences later.

That convenience comes at a cost. Every new integration creates a connection between systems, and often between your data and a third party you do not control. Those connections introduce security, privacy, and compliance risks that deserve careful attention. Vetting SaaS integrations properly is a core part of responsible IT management.

Why third-party risk deserves serious attention

Your security posture is only as strong as its weakest link. A single poorly vetted integration can open the door to compliance issues or large-scale data exposure.

High-profile incidents in recent years have shown how complex digital ecosystems amplify risk. When businesses rely on dozens or even hundreds of vendors, a vulnerability in one system can be used as a stepping stone into others. The more interconnected the environment, the larger the attack surface becomes.

A structured vetting process helps reduce that risk. Mapping data flows, limiting access to only what is necessary, and requiring independent assurance such as SOC 2 Type II reports all play a role. Done well, this approach does more than protect systems. It also supports regulatory obligations and helps safeguard reputation and financial stability.

Five practical steps for vetting SaaS integrations

A sensible evaluation process does not need to be heavy or bureaucratic. It does need to be consistent. The following steps provide a solid baseline for assessing third-party SaaS tools.

1. Look beyond the features and assess the vendor

A polished interface and a strong feature list mean very little without sound security practices behind them. Start by understanding who you are dealing with.

Ask about recognised security certifications and independent audits, particularly SOC 2 Type II. This report demonstrates that a vendor’s controls are not only designed appropriately but also operating effectively over time.

It is also worth reviewing the vendor’s background. How long have they been trading? Have they experienced previous breaches, and if so, how transparent were they about them? Do they clearly explain how vulnerabilities are reported and handled? Reputable vendors are open about their security posture and processes. Evasiveness at this stage is a red flag.

2. Understand exactly what data the tool can access

Before approving any integration, be clear on what data it will touch and what permissions it requires. A simple question often reveals a lot: what level of access does this application need to function?

Be cautious of tools that request broad read and write access across your entire environment when only limited permissions should be necessary. Applying the principle of least privilege reduces the impact if the tool is compromised.

Ask your IT team to map how data flows through the integration. Where does it originate, where is it stored, and how is it transmitted? Encryption should be used both in transit and at rest, and the vendor should be clear about where data is hosted, including geographic location. This visibility is central to effective third-party risk management.

3. Review compliance and legal responsibilities carefully

If your organisation is subject to regulations such as GDPR, your vendors must meet those requirements too. This is not optional.

Review terms of service and privacy policies with care. Confirm whether the vendor acts as a data processor or data controller and whether they are willing to sign a Data Processing Addendum when required.

Pay close attention to where data is stored. Data residency and sovereignty rules can apply even when this is not immediately obvious. Storing data in regions with weaker privacy protections can create unexpected compliance issues. Legal reviews may feel slow, but they define accountability if something goes wrong.

4. Check how the integration authenticates and manages access

How a SaaS tool connects to your systems matters just as much as what it does with your data. Modern integrations should rely on secure, standards-based authentication methods such as OAuth 2.0. These allow systems to connect without sharing usernames and passwords.

Administrators should have clear visibility and control through management dashboards, including the ability to revoke access quickly. Any service that requires credential sharing or lacks proper access controls should be treated with caution.

5. Plan the exit before you install

Every integration has a lifecycle. Tools are replaced, contracts end, and priorities change. Knowing how to disengage cleanly is part of good governance.

Before approving an integration, ask how data can be exported at the end of the relationship. Will it be provided in a usable, standard format? How does the vendor confirm permanent deletion of your data from their systems?

Clear offboarding processes prevent data being left behind or forgotten. Planning for the end from the beginning shows maturity in how technology decisions are made.

Building a more resilient digital ecosystem

Most organisations cannot operate in isolation. Data routinely moves between internal systems and third-party services for processing and storage. Because of this, blind trust is not a viable strategy.

A repeatable, well-defined vetting process reduces uncertainty and helps keep risk at a manageable level. It turns SaaS integrations from potential liabilities into controlled components of a wider ecosystem. With the right checks in place, you can adopt new tools with confidence, knowing they support the business without quietly increasing exposure.