What does SaaS Application Development Costs

SaaS (Software as a Service), is an excellent platform for new and seasonal entrepreneurs but just like any other platform. It is a cloud-based technology or service where the user does not have to download or install the software on their pc or network. The application or software is maintained and kept up-to-date on a server and users access it using a web browser. Developing SaaS products does come with related costs. Startup costs are usually high, let’s take a look at the costs related to the development of SaaS products and some tips to reduce these costs.

Cost of Developing SaaS Product by Hiring a Freelance Developer

On average SaaS developers or software developers charge around $20 per hour. Suppose if your SaaS takes around 3 months to develop then this accounts for around 450 hours of development. This will cost you $10,000 approx.

This is a huge amount but this will also mean that your SaaS is of top quality and will attract as well as retain customers. These people are highly qualified and trained and so the price you pay benefits you in the long run.

Cost of Developing SaaS by Hiring an Agency

These software developer agencies cost a lot more than individual developers. But this also comes with several advantages. The first and foremost is that they got more experience as they have done more projects across different industries. Also, they will have access to more sophisticated technologies and processes.

Now comes the cost, if we take the same example of 3 months of development time then a development agency would charge more. This is because agencies assign multiple developers and a project manager as well sometimes. The cost can go up to $50,000 to $100,000 plus but if you are looking for the smoothest experience possible, then you should go for this option.

Don’t cut back on Quality

New entrepreneurs try to get along with the cheapest option possible, the results in an unsatisfactory product. This is not advisable at all because this will turn out to be a nightmare for your business. To avoid such a disaster always look for the quality first and then for the price. This is because if the customer doesn’t get a good experience and is welcomed with a mediocre experience, then he or she will never recommend your product to others.

SaaS Development Cost Minimization

The cost you have to pay depends on the time your project takes. Reducing time means cutting back on features. So, you should do a thorough analysis and decide what features are really necessary and then startup with them. For example, you should decide whether you need a full admin dashboard or just a simple one with users, and payments will work? Is there a need for multiple payment methods or stripe/card payments would do the job?

All of this should be handled with care as you don’t want to launch a half-baked application that fails miserably.

A most Effective way to Develop SaaS

You must have heard about MVP (Minimal Viable Product). This means developing your initial version of SaaS for launch with the least but highly recommended features and the core features only. This is will tremendously reduce the time required for the development and hence will reduce the cost. After launching the MVP, you can add-up additional features and function based on user feedback and technological advancements.

That was our list of most significant costs and best strategic measures to keep the costs low. We hope our guide added to your information and you will be able to make better decisions about which features to add at launch and which developers to hire.


About The Author

My name is Stuti Dhruv & I am senior consultant at Aalpha, primarily working on pre sales, consulting with clients on latest technology trends.