SaaS Development: To Outsource or Not to Outsource?

SaaS development outsourcing is a great framework to follow.

It involves delegating the work to another team in an offshore location.

There are several reasons to choose this method of development.

SaaS outsourcing harnesses the low-cost development possibilities.

As we progress towards an integrated development community, organizations outsource to get the benefit of a global talent pool.

The global IT Outsourcing industry has a worth of $92.5 billion.

Out of this, the share of IaaS and SaaS was $8 billion until the third quarter of 2020.

It is a big market, many players want to get a share of the pie.

This makes your job of selecting the right outsourcing vendor for SaaS a bit tedious.

Plus, a PR Newswire report shares the expected market size of the SaaS market to cross $300 by 2026.

This only heats things up a notch.

That is why we are sharing a guide for choosing your ideal partner for outsourcing your SaaS development.

SaaS outsourcing is here to stay, and it will only evolve with time.

So, it is better to have access to a fool-proof guide that will serve your interests now and in the future.

The Benefits of Outsourcing SaaS Development

If you are only considering outsourcing SaaS development as of now, by the end of this section, you will be decisive.

As per Crunchbase, there are 23,750 SaaS companies in the world.

All of them serve the users with the product they feel can bring about a significant difference in their organization.

Here are two interesting insights;

Automation in SaaS and agility-led development is fueling the market growth,Cyber-attacks are hindering their growth.

The growth-led SaaS outsourcing development models help create highly performant products.

These products are developed by expert teams, who mean business.

So, the first benefit of outsourcing the SaaS development is expert product creation.

1. Expertise

Five things will lead the future of SaaS development;

Artificial intelligenceAbility to build a Vertical SaaSGiving priority to integration abilitiesModifications in the Pricing policyLeading the industry with thought leadership

The cumulative effect of these things will be the realization of making SaaS and outsourcing a multi-billion dollar industry.

But the addition of all these aspects means that the product has to be super-efficient.

For this to happen, you require an adroit outsourcing SaaS development team.

Your ideal team must be able to adhere to the five aspects given above and overcome the five challenges listed below.

ChallengeIts Impact on SaaS DevelopmentThird-Party IntegrationYes, 3rd-party integration in SaaS software development outsourcing is a challenge and an opportunity.Not all types of integration is a challenge, but the enterprise SaaS integration is an imminent one.
Most of the SaaS developers leave it to the users whether or not to integrate.
In case of an anomaly, the 3rd-party integration error is counted as a product error.
This is bad for business.
But the way forward is that the companies take cognizance and set up the integrations themselves.
This will enhance the customer’s confidence and trust.
But to make this possible, you need to get your hands on an expert team.
A team, which understands the potentialities of such additions and can deliver the same.
Plus, the QA personnel of the outsourcing and SaaS development team needs to carry out rigorous checking for the purpose.
Compliance ChallengesVertical SaaS are industry-specific with niche-related features.Hence, building HIPPA or GDPR compliant SaaS products will be a major trend in the future.
The challenge for you is to understand and build a platform to serve the industry’s interest.
To overcome these challenges, the SaaS and outsourcing team needs two things;
Enough Reference ArchitecturesRelevant development patternsYou will find these aspects in developers who have prior experience and deep industry knowledge.
Zero-Downtime DeploymentThe yearly churn rate of SMB with reference to SaaS is 58%.This means that 58% of the SMB customers do not renew their plans.
One of the reasons for this behavior is downtime.
In an era where retaining customers is imperative, downtime leads to losing 37% of customers and 17% of revenue.
Leaving is the only thing that SMBs can do at this point.
Hiring an expert SaaS development and outsourcing team is beneficial.
It will help you build the software with zero downtime at deployment.
Subscription ManagementIn every industry, retaining customers is always better than acquiring new ones.So, under subscription management, it is imperative to sustaining a customer’s lifecycle operations.
The development team must understand the importance of recurring revenue on growth.
It is a challenge to maintain the customer’s lifecycle operations.
Overcoming them can become easier with an appropriate product.
It includes streamlining the sign-up, support, and payment system processing.
Customizing the SoftwareThere has been a long-standing debate on the need of customizations in SaaS.Several software vendors support the cause and concur that it is essential to make a system configurable.
A lot depends on the product developers and managers.
The challenge posed by customizations is the situational underpinnings.
Since customized systems are extended versions of the core product, they need extra time and cost.
Not all the stakeholders and Saas development teams are on the same page, especially the outsourcing ones.
The entire team has to work extra to provide infrastructure and additional solutions.

Interesting to read more about how to outsource saas development? Follow the link.