SaaS or (Software as a Service) is one of the biggest segments of the overall cloud-based technologies market. The growth rate is tremendous with revenue expected to grow by 22.2 percent and reach 45 percent of the application software market by 2021. This industry is expected to generate $76 Billion per year. The demand for SaaS Solutions is increasing. This, in turn, is increasing the competition and the market is getting saturated as well. SaaS Initial Public Offerings (IPOs) have increased by more than double in the past 12 years and the top SaaS Companies are expanding their teams at an average rate of 56 percent.
So as the SaaS Industry is maturing, the developer must achieve the optimal marketing fit to stay ahead of their competitors. Many SaaS Companies are taking help from Outsourced Development Teams to help them achieve the demands of the Market in a Cost-Effective and efficient way. So, let’s take a look at some of the benefits of Outsourcing SaaS development.
1. Startup costs are lowered:
These SaaS companies launch with a limited budget and lesser resources which makes developing their MVP (Minimum Viable Product) a big challenge. So, by working with an outsourced development firm, these companies can create their MVP without getting worried about spending all their budget or cutting back features so much that the customer value drops. The best example of such an arrangement is Slack.
Outsourcing Web and App Development allowed Slack to develop and test its MVP as quickly as possible. The company released a prototype product to test its collaboration software without any significant risks. This strategy paid off well as the company now has millions of users around the world and has a current Valuation of $7.1 Billion.
2. Results in adding Experience and Efficiency to the Development Process:
Recruitment of new talent in-house is expensive and a slow process. It takes a lot of time to develop a team that collaborates well so a major benefit of working with an outsourced development team for SaaS development process is the access to a wider range of technical expertise. Outsourcing provides SaaS companies with a channel to work with a team that is multitalented with skills ranging from UI/UX Design to Product management and testing or multiplatform development.
The outsourced development team have worked together already on several SaaS Projects and can provide you with professional advice on every step according to their experience. On example could be that they can help you decide about what features the website or software needs the most like integration of email or Chatbots. Also, they can provide guidance on which components of the website can be developed using existing technology and where development would start from scratch.
3. Compliance with Market Demands:
The ability to evolve and expand is vital for SaaS Companies. According to McKinsey, if a software company’s growth rate is only around 20 percent then there is a 92 percent chance that it would not be there in business in the future. Also, if a company is growing at a rate of 60 percent per year, then its chances of earning more than 1 Billion dollars is only at 50 percent. The market demands continuous Updates from SaaS Companies. SaaS Companies need to develop New Features rapidly to stay ahead of the competition coming from new players entering the market. Outsourcing the development process to a capable team helps you achieve all this and to gain a competitive edge in the market.
4. An affordable option for Talent and Skill Requirements:
Not only it is expensive and time-consuming to hire and set up in-house development team, but it is also becoming difficult for SaaS Companies to find qualified developers who possess the knowledge and skills needed to fulfill today’s highly dynamic technological requirements. Teams of the SaaS development companies must be able to handle different types of tasks. This can range from Compliance and Security to Data management and automation. Many of these can be outside of the role for which the team was hired. If employees are stretched too thin for too long this can damage productivity levels and can decrease morale.
So, to fill key roles with the best talent, companies should work with a reliable outsourcing partner. This can even help to keep existing employees happy and minimizes disturbances and problems. The hourly rates are also lower when you outsource your work to a planned location. You can add up features and expand your services without getting worried about additional costs. For Example, if you Outsource Web Development to developers in the USA, the cost can be from $80 to $150 per hour while those in Latin America will only cost you between $40 to $70 per Hour. Outsourcing provides you with a huge pool of professionals which enables the companies to choose the best possible options and get the job done in an efficient manner.
So, whether it is the MVP development stage or the Growth Stage of SaaS Development, working with an outsourced development team provides you with a number of benefits. According to Cisco’s Global Cloud Index, 59 percent of the Cloud workflow will be through SaaS by the end of this year. Also looking at the pace of industrial growth not only it is an option, but it is becoming essential for the companies to outsource certain aspects of the development process that need to save time and resources while maintaining the value for the customers.
The SaaS development outsourcing companies make sure that a large variety of applications are being developed utilizing new ideas with reduced costs. All you need for such applications is a skilled professional and his system and the purpose can be achieved without establishing an office in order to avail these services.