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Why Should You Consider Outsourcing SaaS Development Services?

saas development services
saas development services

Going for Software as a Service (SaaS) means adopting a software delivery model that facilitates data access from any internet-connected device. Today, outsourcing SaaS development is in high demand, attracting both startups and large enterprises.

In this blog, we’ll see why outsourcing SaaS development services should be on your radar. But before we dive into that, let’s gain a solid understanding of what SaaS is and the perks it brings to the table. So, let’s get started!

Key Takeaways:

  • From highly scalability potential to cost-efficient SaaS product development has numerous advantages
  • By outsourcing SaaS development, businesses can rapidly scale, save a lot of money, and leverage a diverse talent pool

What is SaaS?

Software-as-a-Service (SaaS) is a revolutionary cloud-based software delivery model enabling end-users to access software applications via the internet. Unlike traditional methods involving purchasing and installing software on individual systems or servers, SaaS offers a subscription-based model. Customers pay periodic fees, gaining access to the software through a web browser or application.

This approach liberates businesses and individuals from the burden of investing in expensive hardware or necessitating specialized IT expertise. Consequently, SaaS emerges as a convenient and cost-effective solution, allowing seamless access to robust software tools.

SaaS goes by various names, such as Application Service Provider (ASP) services, Software on-demand, and services in the cloud. The standout feature of SaaS applications lies in their effortless accessibility and management through the Internet.

What is the Advantage of SaaS Product Development?

SaaS brings forth many advantages, effectively alleviating the burdens associated with hardware maintenance, software licensing, installation, and support expenses. Here are some key benefits of SaaS:

Automatic Updates

SaaS providers take charge of keeping their platforms consistently updated, eliminating the need for users to worry about software maintenance. This results in significant time and effort savings.


Utilizing SaaS saves considerable time, eliminating the time typically spent on installation and configuration. This streamlined approach proves to be highly efficient.


SaaS stands out for its cost-effectiveness, primarily because it eradicates the necessity for expensive hardware acquisition and involves low maintenance costs.

Highly Scalable

One of the notable strengths of SaaS is its remarkable scalability. It allows businesses to scale their operations up or down based on specific needs, ensuring optimal resource utilization.

Why You Should Outsource SaaS Development Services?

Reduction in Cost

Like many other technology firms, SaaS enterprises often operate within constrained budgets, prioritizing the reduction of initial development costs while maximizing returns from their completed software. The intensely competitive landscape of the SaaS industry, combined with these financial constraints, makes it challenging for companies to afford large and highly skilled internal development teams required to create a compelling Minimum Viable Product (MVP) that resonates with consumers. Consequently, a common strategy for both small startups and larger enterprises is to turn to outsourcing when embarking on new SaaS development projects.

Software outsourcing companies play a crucial role in supporting startups through various approaches. One such method is staff augmentation, where proficient software engineers are hired to complement existing teams on an hourly basis, precisely for the duration their specialized work is needed. This could involve bringing in experts for a few days during critical phases, while other contractors may engage in long-term collaborations within the firm. Also, some companies choose to outsource the entire development process to a seasoned end-to-end delivery team capable of transforming a rough concept into a polished final product.

Regardless of the chosen approach, a reliable outsourcing partner should assist in devising a cost-effective plan of action.

Expertise and Efficiency

Outsourcing opens doors to a vast network of seasoned software engineers, providing access to a wealth of experience and efficiency. This diverse pool of talent encompasses masters in UX/UI design, testing, mobile expertise, and more.

By leveraging an outsourcing team, you tap into the expertise of implementation specialists who are well-versed in managing product data and product lifecycle. These specialists ensure your system is meticulously designed, properly configured, and aligned with your specific needs. This proactive approach prevents instability and enhances productivity, establishing a solid foundation for your Product Lifecycle Management (PLM) strategy.

Outsourcing teams equipped with diverse specializations excel in handling formidable challenges. Trained to tackle advanced tasks, they expedite development, add significant value, and facilitate the seamless adoption of new technologies, regardless of your business size.

Flexibility and access to various specialists allow an outsourced team to manage various products. This adaptability empowers you to customize out-of-the-box solutions, tailoring them precisely to your needs and requirements.

Flexibility and Rapid Scaling

Continuous growth and staying abreast of the latest features are imperative to meeting market demands and competing effectively. This is where outsourcing proves to be a strategic solution.

For SaaS development services, the challenge arises when they need to adjust their team size after a product launch. With outsourcing, this challenge becomes non-existent. Engaging a remote team provides the freedom to expand or decrease developers’ velocity as needed.

Partnering with an IT software outsourcing company offers access to a comprehensive range of services, including product development, UX/UI design, maintenance, and technical support with analysis. Moreover, it provides a team of developers with diverse skill levels, allowing you to tailor your team composition to suit your specific requirements.

Despite concerns about quality and security, an outsourcing company assumes full responsibility for the final product’s quality and confidentiality. The agility provided by outsourcing enables extreme flexibility for making changes or altering the project direction mid-development. In case of emergencies or unavailability, an outsourced team ensures immediate replacement of developers, preventing development standstills.

Affordable Talent

One of the standout benefits of outsourcing is the accessibility to skilled professionals across various time zones, translating to international hourly rates that are often more economical than those offered by local service providers.

When looking for SaaS development services companies, we can group them into four categories based on their project price range and hourly rates.


  • Employee count: 100 to 1000
  • Offices in multiple locations
  • Hourly rate: $200 – $300
  • Project range: $125,000 – $5,000,000+

Small to Medium Businesses (SMBs)

  • Employee count: 10 to 100
  • Primarily serving small or medium-sized businesses
  • Hourly rate: $125 – $175
  • Project range: $50,000 – $5,000,000


  • Employee count: 2 to 10
  • Low expenses
  • Hourly rate: $75 – $175
  • Project range: $10,000 – $500,000

The affordability of outsourcing, particularly in the mid and small-class categories, allows businesses to access diverse skill sets at competitive rates, making it a practical choice for various budgetary considerations


Outsourcing development services opens up loads of chances and benefits. Lots of well-known SaaS products? They were developed by top-notch teams worldwide. Outsourcing is like a superhero saving your time and money, giving you access to skilled talent and the freedom to scale up or down with specialized providers.

Got a SaaS project that needs a boost? FiveRivers Technologies has the right team of SaaS developers ready to lend a hand. Just reach out!


1. Potential Risks of Outsourcing SaaS Development?

With a lot of advantages associated with SaaS development, there are also some risks involved. They are:

  • Security and Privacy Issues
  • Lack of Alignment
  • Unexpected Costs
  • Communication Issues

2. What is outsourcing in Software Development?

Outsourcing in Software Development is the practice of hiring external third-party companies or individuals to handle tasks or projects related to software development. This can include activities such as coding, testing, design, maintenance, and support. Outsourcing is often done to leverage specialized skills, reduce costs, and focus internal resources on core business activities.

3. Is outsourcing software development a good idea?

Outsourcing software development can be a good idea for cost savings, access to specialized skills, and scalability. However, it may present challenges such as communication barriers and quality concerns.

4. What is outsourced product development?

Outsourced product development refers to the practice of hiring external vendors or companies to design, develop, and sometimes even maintain a product or software solution. This approach allows businesses to leverage the expertise and resources of specialized firms, often located offshore, to bring their product ideas to fruition.

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