The Benefits of Outsourcing SaaS Development

Written By
Ravi K Nair
Technical Content Strategist
Last updated at April 21, 2022
The Benefits of Outsourcing SaaS Development

SaaS development and outsourcing are significant steps if you plan to take your organization to the next level. According to CrunchBase, there are about 23,750 SaaS companies in the world. They all serve the users with the product they feel can bring about a difference in their organization.


An outsourcing SaaS development model is a strategically-led model which creates optimum conditions for a company to focus on its core business processes. These processes encompass sales, HR, and others. An outsourcing SaaS model creates optimum conditions for the core team of experts, who are instrumental in developing highly performant products. 


Why should you consider Outsourcing SaaS Development?


SaaS software development is applied in different fields, including office and messaging software, accounting, invoicing, CRM, e-commerce and more. SaaS software development uses the same tools and processes as traditional software development.


However, the focus is on creating applications that can be accessed by a wide range of users over the Internet. This approach has many advantages. It can be used to create a new type of application that could not be created using traditional software development methods. 


Read more: Saas Platform Development for founders


Let us look at the four key benefits of outsourcing SaaS development


1. Expertise


An outsourced SaaS development team's value is demonstrated by four significant areas: economy, speed, quality, and control. Four things will lead the future of SaaS development;


  • Ability to build a Vertical SaaS
  • Integration-oriented development
  • Modifications in the Pricing/Subscription policy
  • Leading the industry with thought leadership


As we mentioned above, outsourcing is so popular that even the world's IT frontrunners do not deny they work with overseas partners. The idea was born long ago, and it covers a variety of industries. Hundreds and thousands of engineers in different locations are used to the outsourcing concept.


Until now, SaaS outsourcing and the global realization of making SaaS and outsourcing a multi-billion dollar industry has just been a dream. But with all these aspects combined, there is real hope for this dream to be realized, and we are ready to use our expertise to show you how to take advantage of this opportunity. Your team must stick to the four aspects given above and overcome the five challenges listed below.

Third-party integration:


It can be an excellent opportunity to have 3rd-party integrations in your software product to improve your clients' experience. But in the case of anomalies, integration errors are bad. The companies should take notice and set up the integrations themselves. This will enhance the customer's confidence and trust. But to do this, you need a team of experts —a team, which understands the potential outcomes of such additions and can deliver the same.


Compliance challenges:


Vertical SaaS is industry-specific and provides niche features. It will be a dominant trend in the future. The challenge is to understand it and build a platform to serve the industry's interest. To overcome these challenges, the SaaS and outsourcing team needs two things;


  • Enough Reference Architectures
  • Relevant development patterns


You want your apps and software programs to be developed by developers who've worked on similar kinds of projects before.




According to Gartner Inc., the annual churn rate of SMB SaaS customers is 58%. Downtime is one of the reasons for this behavior. While downtime might be a minor setback for bigger businesses and brands, it stands as the biggest issue for SMBs. Downtime is mainly due to the lack of expertise, capabilities, and technical resources with in-house teams.


Subscription management:


Controlling subscription costs and services is the best way to manage customer lifecycle costs. Investors use recurring revenue as a leading indicator of sustained growth for businesses. Investors consider subscription metrics to be a key performance indicator (KPI) for future growth. It's a challenge to manage customer support, billing, and other customer lifecycle operations. Overcoming these challenges can be made easier with the right products.


Downtime is Customizing the software:


While customizations can be beneficial, they can also hinder the development process. For example, a product may take months to develop while being customized, and customers may not like the wait time. Having several customizable features of a system can drive costs up, as well as create confusion amongst users.


Not all the stakeholders and Saas development teams are on the same page, especially the outsourcing ones. One of the biggest challenges that an outsourcing Saas development team faces is to work on a solution that meets the entire team's needs while providing infrastructure and additional explanations.




2. Cost


Outsourcing the SaaS development saves cost, period. It is an intelligent solution for your new tech venture. Many startups start with the idea that they will hire an offshore development team because it's much cheaper and bootstrap their business fast. The challenge, however, is to choose the right agency or company to handle your development work.


For now, it is evident that with SaaS development outsourcing, you can build a proactive product;

  • With cost-optimization.
  • In record time.



3. Recruiting


It's no secret that hiring software developers these days is a difficult task. It can take a lot of time and money, especially when you hire people who don't end up working out. Time and money you could spend on more important things like increasing revenue. Outsourcing SaaS development gives you the ability to complete projects faster. You could achieve it very quickly if you follow the correct finding and recruiting a high-quality team to work with.



4. A rapid approach to development


When it comes to SaaS development, outsourcing is the easiest solution for companies of all sizes. Outsourced businesses in this industry will know your project's ins and outs as they have been there before and have a thorough understanding of how each sector works. The many development kits that are available with one service provider make their services unmatched.


Businesses are increasingly outsourcing their IT functions to lower costs and gain access to a larger talent pool. However, finding the right team is like looking for a needle in a haystack. That is why many businesses rely on outsourcing portals that filter out the topmost vendors.


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