SaaS (Software as a Service) is so far the largest segment of the cloud market. Its revenue is expected to grow 22.2% and reach 45% of the total application software spending by 2021. It is also likely that the industry will reach $76 billion per year.
As the demand for SaaS solutions is increasing, so is the competition. The market is getting saturated, as well. Over the past 12 years, the Initial Public Offerings for SaaS has doubled. The highest performing SaaS companies have been growing by an average rate of 56% per year. This is huge!
The SaaS industry is maturing, and this calls for companies in the field to create a proud market fit faster if they want to stay ahead of the competition. Since the market demands are overly increasing, many SaaS companies are outsourcing SaaS application development services to keep up with the marketing demands and yet stay cost-effective. It’s an ideal solution, especially if you have a limited budget.
2020 is around the corner, and if you have still ignored SaaS development, then you are far behind the journey of success. Take a look at these benefits of outsourcing SaaS application development:
It redeems the startup cost
If you are a startup, you might be on limited resources and funds to develop an MVP (Minimum Viable Product). Outsourcing SaaS experts would be more comfortable for you to create a product without exceeding your budget. Additionally, the MPV will be ready soon, and you will be able to test the prototype and check the alliance software without incurring significant risk.
It reduces the manager’s burden
Throughout the SaaS development process, the biggest issue manager’s encounter is sourcing and hiring the right staff. When SaaS is to be used during the regular business cycles, it might be not a big challenge, but when it’s a significant development project, time-intensiveness becomes an issue.
Outsourcing SaaS development will be a practical approach to work through your project in a less costly way. Professional recruiters at the software outsourcing companies have a great work relationship with technology specialists. They have an exclusive list of specialized software engineers who are ready to start a new project. You will have access to a pool of highly talented resources. This would save the time of your management team and reduce the frustration along the process.
It enhances experience and efficiency
Recruiting new talent is not just expensive and slow, but building a quality team can take months. You are better off outsourcing a team of developers who already have technical expertise. Skilled developers have expertise in product management, UI and UX design, and cross-platform development and testing.
Why not take advantage of a team that already has worked on tons of similar projects? They can also advise you throughout the process.
Meet the market demand faster
No matter what the commercial industry it is, it must have the ability to scale rapidly. McKinsey says if a software company grows 20% a year, there are 92% chances it will shut down in the future. If the company is growing 60% per year, there are 50% chances that it is surpassing 1 billion in revenue.
To meet market demands, SaaS companies need to stay updated continuously. By outsourcing, an organization can deploy the new trends in the industry into its projects and keep up with the market without making it expensive.
More focus on core business operations
When outsourcing the processes that are not your Unique Selling Points, it helps you increase and improve your core processing. You allocate resources to operations that can make your business more competitive. At the same time, your in-house staff does not feel overwhelmed by performing tasks that don’t match their skill-set. In short, you and your team can focus on the strategic goals that are in alignment with your business.
It adds more value
Outsourcing a team for SaaS application development can add more value to your business. The offshore team will help you focus on innovating and improving the product without compromising the core operations of your company.
An outsourced team will have fresh eyes on your product, and look at it through different lenses. Your in-house team can work in parallel with the experts outsourced to work on enhancements while the day to day operations remain in place.
It’s an opportunity to learn
No matter how experienced your development team is, it’s often hard to understand the SaaS development cycle, customer needs and the challenges that the project is likely to bring. Your in-house team can benefit from the experience of the offshore team. Working with advisors who have overcome the challenges throughout their career can be extremely valuable. Your employees will have the opportunity to work with the most sought-after experts in SaaS application development services in the industry.
Flexibility after development
When you are in the middle of developing a project, most employees don’t have the right to think ahead. They hardly plan out how the next month is going to be. It is the primary responsibility of the management to make sure their in-house team is prepared for the next steps once their SaaS product is out in the market.
Once the project is complete or the app is launched, if no post-project issues arise, you won’t need the services of your offshore team. But dealing with the expense of an in-house keep is tricky.
When you have outsourced, you don’t have to deal with the problem of what to do with the staff once the project has ended. Your outsourced development team will keep themselves busy looking towards the future and reorganizing themselves for the next big project instead of being a financial burden for your organization. When you need their services in the future, you can hire them on an hourly basis or as per the terms of the contract.
If you have neglected outsourcing SaaS experts, this is a perfect opportunity to reconsider your decision. Outsourcing comes with its perks. Your competitors might already be on it. Regardless of the size of your business, you can find the right talent at a price your business can afford.