The cloud market and the IT industry are experiencing rapid growth thanks to software as a service (SaaS). Approximately $185,8 billion is expected to be generated by this technology by 2024. So, shall you be thinking about Outsourcing SaaS Development, lets find out?
As the market grows, so do market demands.
To reduce the size of their applications and the device memory that they require, many companies are looking for SaaS development outsourcing partners. Here, we have discussed SAAS development in our blog. Read here to know the details. In this article, we will talk about 4 reasons why you should outsource SaaS development.
The majority of companies cannot or do not want to hire new employees due to lack of resources or the effort involved. Outsourcing SaaS is the answer to this problem.
In SaaS ventures, budgets are typically limited, with the goal of reducing development costs and maximizing revenues. Making an MVP becomes challenging.
Companies can ensure that SaaS products are built as quickly and as cost-effectively as possible by outsourcing the development process.
Slack, a company that offers instant messaging services, is a great example of an outsourced company. We delivered the MVP quickly because of outsourcing. Hundreds of companies around the world use Slack, proving its success.
One of the most popular daily deal websites is AppSumo which offers online courses, software, and other services. It was the business’s $2 million investment in a remote developer that handled the PayPal integration. It outsources many projects and areas despite having over 700k subscribers.
There is also Expensify – a tool that helps people keep track of receipts, transactions, and expenses easier. Expensify contracted an international software development firm to handle the back-end while they concentrated on the front-end and business operations. Over 2 million people use Expensify, which employs more than 130 people.
Through outsourcing, you are able to access software engineers from a wide network of partners. Among them are experts in UX/UI design, testing, mobile development, etc.
When you outsource, you have access to implementation specialists who understand data management and product lifecycles. Your system is designed, properly configured, and set up according to your needs by these specialists. Your PLM strategy is defined to avoid any instability.
The outsourcing teams have experience dealing with the toughest challenges as they are specialized in multiple fields. No matter how big or small your business is, they are trained to handle advanced tasks, which will speed up development, increase value, and ensure swift adoption of new technologies.
Due to their flexibility and access to a variety of specialists, an outsourced team of experts can manage a variety of products. You can customize the solutions they offer so that they meet all your requirements and needs.
The advantage of outsourcing over hiring in-house is that you already have an efficient team in place.
Companies that offer SaaS services in particular must be flexible and fast-scaling. If you want to compete with other companies and meet market demands, you must grow continually and stay up to date with the latest features.
But what happens when your product hits the market? Now, scaling the team size will be a problem? This is not a problem with outsourcing. When you work remotely, you can increase or decrease the developers’ velocity based on business needs.
Software outsourcing allows you to access a variety of services like product development, user experience and user interface development, maintenance, and technical assistance. In addition, you gain access to a team of developers who can be mixed and matched to suit your needs.
Additionally, the skill set and solution flexibility of an outsourced team make it superior to hiring locally or hiring freelancers.
You can hire professionals across the world through Outsourcing SaaS Development, as mentioned above. The hourly rates of international teams are typically lower than those of local providers.
According to the price range and hourly rates of projects, there are four major groups of development consultancy companies.
Business class – companies with 100 to 1,000 employees and offices in more than one city or country. Here, you can expect an hourly rate between $200 and $300 and a project range between $125,000 and $5,000,000. The cost of these kinds of developments is not affordable for everyone.
They usually serve small to medium sized businesses and have 10 to 100 employees. General project sizes range from $50,000 to $5 million, and their rates range from $125 to $175 per hour. Middle-market development companies are an excellent choice for small and medium-sized businesses that want quality at a fair price. It is always best to carry out thorough research on them as some will have more experience and be better than others.
Low expenses and small employee number (2 – 10). Rates range from $75 to $175 per hour, and projects are worth $10k to $500k. Their skills vary from front-end development, UX, UI design, to coding in languages like Ruby on Rails, React, Node.js. These hotels tend to fill up months in advance because of their size.
Furthermore, outsourcing can be classified as either nearshoring or offshoring. Nearshore outsourcing connects you with co-workers whose timezones overlap.
Nearshore outsourcing allows you to save money without sacrificing cultural similarity.
Offshore outsourcing, however, can offer even lower hourly rates. It is also possible to maintain a consistent level of development even if you aren’t working. Having a team in-house and outsourcing other tasks is a great option for companies looking for a mixed development model.
The SaaS development cycle, the customer’s needs, and the challenges the project will likely involve are some of the most challenging aspects of the SaaS process. Regardless of the experience of your management team, they will benefit from outside advisors with a track record of facing those challenges repeatedly throughout their careers.
You can hire the most skilled engineers in the SaaS field by outsourcing software development without a lengthy hiring process, and even more impressively, you can add them to your team almost immediately since your outsourcing partner will have these engineers readily available. Their years of hard-earned experience can assist you in speeding up the development process and avoiding unnecessary work by identifying potential problems before the deployment process begins, gathering valuable feedback from customers and using their years of experience to solicit meaningful customer feedback.
Most employees do not have time to plan beyond next month, and even less for next year, when they are working on a major software development project. But, during this phase, one of the key responsibilities of management is to ensure their team is ready to take on new responsibilities once the software is introduced to the market. What will you do with all of the newly hired full-time employees who are no longer needed for your SaaS development project if you hire a large, highly experienced staff?
After a project, many companies face this problem. Solutions are not easy to come by. You can however, thank your temporary team members for their hard work and contribution if you outsource SaaS development from the beginning of the project. It is an enviable position to be in: managers who hired full-time staff in the past are attempting to determine how to reduce their budgets and hire temporary staff, while those who outsourced development are working to organize their augmented staff in preparation for future projects.
You can have many opportunities and advantages when you outsource your SaaS development. Various expert teams from all over the world have developed many popular SaaS products. In addition to saving time and money, outsourcing offers affordable talent and flexibility in scalability.
We at TechnoBrains.io offer many opportunities and benefits when you outsource your SaaS development. Additionally, with the experienced talent at an affordable cost, and you can scale fast.
We have a team of expert SaaS developers that can assist you with your SaaS development. The products we develop for our clients are of the highest quality. Our company adheres to Agile, Lean, and DevOps best practices to deliver superior service to you. Our business has worked with organizations throughout the world to develop, test, and deploy software that helps grow your business.
Have an idea that could make a difference? We are here to help you.
Can SaaS be considered for outsourcing?
Technology companies have been incorporating Software as a Service (SaaS) into their business models for years. In most cases, however, companies lack the existing staff and infrastructure to handle these large-scale projects, so outsourcing has become one of the most popular solutions to this new SaaS phenomenon.
Is it a good idea to outsource software development?
When companies outsource software development, third parties build their custom solutions for them. As a result of outsourcing software development, you will reduce costs, improve efficiency, reduce risks, and enhance security.
How does a SaaS app work?
Over the Internet, users are able to access and utilize cloud-based applications using software as a service (SaaS). For example, taking advantage of email and calendaring (such as Microsoft Office 365) are common examples. A SaaS product is a complete software solution that you can access via the cloud and pay for as you use it.