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Why You Should Consider Outsourcing SaaS Development

Outsourcing SaaS Development
Outsourcing SaaS Development

The software as a service (SaaS) market has seen a huge upswing in the past decade. The industry is producing market-leading solutions for businesses and end-users. Due to the pandemic, remote work has increased, and this change is well-supported by the SaaS industry. From sales and marketing to human resources and development, each department is using SaaS products in one way or the other. The SaaS revenue is expected to reach $623 billion by 2023. Today, SaaS organizations are operating in more than 100 countries, and they utilize the power of cloud services to provide seamless communication.

The annual growth rate of the SaaS market is recorded to be 18%. The increasing use cases are due to the enhanced SaaS capabilities that provide manifold benefits to businesses. With this, SaaS outsourcing is also increasing and businesses that are unable to make on-premises setup for SaaS product development find outsourcing the better option. The improved SaaS automation and the high-end agile abilities are fueling the growth of the market. There are several other challenges to the digital world that are curbed through SaaS capacities.

SaaS-based product development goes through a predefined workflow. The developers and project managers must first perform extensive research on the project’s scope. The next step is to plan the modules, develop them, and test them. Companies are outsourcing SaaS products to eliminate the overhead of hiring staff, managing them, and providing them with hardware and equipment. The setup becomes very expensive. Instead of investing this much, businesses find IT outsourcing service a more convenient solution. This article describes some other reasons why companies should consider outsourcing SaaS development.

What is Saas?

SaaS, short for Software as a Service, is like having your apps delivered through the Internet. Instead of dealing with the fuss of setting up and looking after software on your own, you can just hop online and use it hassle-free. According to a recent study by DevSquad, a whopping 73% of businesses are gearing up to shift all their systems to SaaS. Some big-name companies, such as Slack, Expensify, Groove, Microsoft, 6sense, and plenty more, have found success by outsourcing their development work.

Benefits of SaaS

SaaS brings a bundle of advantages, waving goodbye to expenses on hardware maintenance, software licenses, installation headaches, and support. Check out these perks:

  • Automatic Updates: No worries about keeping things current, SaaS providers handle updates, saving you time on software maintenance.
  • Time-Saving: Skip the installation and setup hassle, SaaS is all about efficiency, saving you heaps of time.
  • Cost Efficiency: With no need for pricey hardware and minimal maintenance costs, SaaS is a budget-friendly choice.
  • Scalability: SaaS flexes with your business. It’s designed to scale up or down, adjusting to your specific needs on the fly.

Why You Need to Outsource Your Product SaaS Development?

Considering outsourcing for your SaaS product development? Here’s why it can be a game-changer:

SaaS development operates in the cloud, ensuring seamless development, distribution, and support. This cloud-based approach allows customers to access unique features akin to more traditional software formats.

Outsourced mobile and web app development services cover the entire app engineering lifecycle, offering users the choice of complete software packages or specific segments.

Outsourcing SaaS projects often results in a well-executed task, covering both the MVP (Minimum Viable Product) stage and subsequent growth. The MVP stage, starting with features satisfying early users, presents unique challenges in creating SaaS solutions. However, outsourcing SaaS product development is cost-effective and fosters significant project growth year by year.

Developing a SaaS product differs in scale and complexity from traditional products. Skilled development teams understand the product’s end goals, planning technical advancements and deployments effectively. Yet, handling these complexities and changes in technology landscapes can be daunting and expensive without outsourced expertise.

Benefits of Outsourcing Saas Development

To outsource SaaS development smoothly, having a clear vision and solid plans that can adapt to new challenges is key. Now, let’s explore the significant benefits of SaaS development outsourcing services.

Saas Product Development Benefits of Outsourcing Saas Development

Rapid Project Development

A SaaS product development outsourcing company provides you with the experience of a team that has worked on various projects before. From human resource services to development and marketing, they provide complete assistance for your SaaS product. You do not need to find the right candidates for your project development. They employ development models such as waterfall development model and agile. The outsourcing companies have a team of experts who are available 24 hours a day to ensure mature software development.

As you don’t need to manage the project or resources and have a dedicated team doing it, outsourcing completes the project rapidly.

Many factors contribute to the faster completion of the project, which includes:

  • Experienced developers.
  • Consistent project monitoring.
  • Regular work updates.
  • Availability of all the resources 24/7/365.


In the initial phases of project planning and development, clients do not have time to think about the scalability aspect of the project. After some years or so, the requirement for project expansion becomes hard to incorporate. It is one of the outsourcing company’s primary responsibilities to consider the scalability requirements in case the project needs to expand in the future.

But what happens when your team needs to adjust to market shifts? Outsourcing solves this puzzle. A remote team offers the freedom to scale your developer workforce up or down as needed.

Partnering with IT outsourcing service companies unlocks a wide range of services, from product development and UX/UI to maintenance and technical support. Access a diverse team with varying skill levels, empowering you to tailor the perfect mix for your needs.

Despite concerns about quality and security, outsourcing firms shoulder full responsibility for product quality and confidentiality. Agility grants unmatched flexibility for mid-development changes or shifts in project direction. In emergencies, an unavailable developer gets a swift replacement, ensuring no development stalls.

The adaptability of tech stacks and solutions further cement outsourced teams as a superior choice compared to local hiring or assembling a group of freelancers.

The SaaS outsourcing companies are aware of SaaS development best practices that mitigate such challenges and provide full support for project expansion. They help:

  • Define clear requirements to scale up the SaaS backend.
  • Plan scalability measures for the backend.
  • Find the most appropriate cloud computing service.
  • Design the right architectural design for the backend.
  • Choose a suitable technology stack for development.
  • Focus on key testing practices for seamless scalability.

Efficient Service Providers

Outsourcing opens doors to a vast network of seasoned software engineers offering diverse skills, including UX/UI design, testing, mobile expertise, and more.

Partnering with tech outsourcing companies allows access to implementation specialists adept at managing product data and lifecycle. They ensure robust system design, setup, and configuration tailored to your needs, preventing instability, boosting productivity, and refining your PLM strategy.

These teams specialize in various domains, tackling even the most challenging tasks. Their expertise accelerates development, enhances value, and facilitates seamless adoption of new technologies, regardless of your business’s size.

Expert outsourced teams excel in managing diverse products, leveraging flexibility and access to specialists. They tailor off-the-shelf solutions to match your unique needs precisely.

The right outsourced team serves as problem solvers, offering guidance and steadfast support. Their extensive experience becomes a valuable source of learning and insight. Choosing to outsource rather than hiring in-house means choosing a team that is already cohesive and primed to collaborate effectively.

Developing Lightweight Solutions

Customer expectations and cutting-edge SaaS products are increasing competition in the SaaS market. It is crucial to consider all the necessary KPIs when it comes to SaaS-based product development. For this purpose, the developers should know market dynamics, advanced technologies, and procedures to develop lightweight projects.

The outsourcing companies actively monitor the changing trends and requirements of the customers based on which the software development varies. They are responsible for:

  • Making the systems highly efficient.
  • Ensuring robustness in each module.
  • Providing enhanced security.
  • Developing the system lightweight enough to meet the expectations of end-users.
  • Guaranteeing optimized customer experience to achieve the goal of both customer satisfaction and profit maximization.

Lower Costs

One of the standout perks of outsourcing SaaS development is cost reduction, a crucial factor for SaaS projects facing the challenges of delayed profits, rapid growth demands, high customer turnover, and stiff competition. Starting a new SaaS project often means tight budgets, especially in the initial MVP phase. Outsourcing MVP development allows industries to craft a minimum viable product without hefty spending. While companies with huge capital might opt for in-house teams, outsourcing is the safer bet, avoiding hefty investments. IT outsourcing cost is way less than an in-house team.

For startups, outsourcing SaaS product development offers significant advantages. Hiring skilled software developers hourly significantly slashes expenses, ensuring quality work and technical prowess. Unlike full-time developers, hourly paid developers are motivated to maintain their reputation by delivering top-notch work optimizing resources and skills. Companies experience huge in-house vs outsourcing software development differences in cost.

Some companies even entrust their SaaS product development process to experienced end-to-end delivery teams. Regardless of the outsourcing destination, a cost-effective plan is vital. This allows outsourcing partners to infuse expertise and turn a raw idea into a refined final product.

Streamline Operations without HR Overhead

Hiring employees, whether freelancers or in-house engineers, involves a complex and time-consuming process. It demands substantial time and financial resources for recruitment, onboarding, and managing various formalities. From training and office setup to leaves, insurance, taxes, and finding replacements, the list of local responsibilities goes on.

Outsourcing to an agency liberates you from these tasks and costs. By partnering with one of the best software outsourcing companies, you sidestep the need for managing day-to-day HR-related issues. This means accessing a pool of skilled developers and staff, backed by proven abilities, solid backgrounds, and recommendations, without the overhead of HR management.

Learning Opportunity

Even the most seasoned in-house development teams may struggle to grasp the intricacies of the SaaS development cycle, customer requirements, and the inherent project challenges. In such scenarios, leveraging the experience of offshore teams becomes invaluable. Collaborating with consultants who have navigated similar challenges offers a unique learning experience. It provides employees the chance to collaborate with industry-renowned experts in SaaS application development services.

Mitigate Risks

Every SaaS development venture carries inherent risks, yet outsourcing significantly diminishes these concerns. Collaborating with top-tier talent experienced in SaaS development not only shares the workload but also adds an extra layer of security, effectively minimizing potential risks.

Enhance Product Strategy

One crucial benefit of outsourcing SaaS development to a tech provider is the strategic input they offer. Collaborating with an outsourcing company experienced in the industry or possessing a strong business focus provides added value to this partnership.

These product development outsourcing companies leverage their expertise to guide clients in making sound technical decisions. This includes advising on technology choices, analytics implementation, feature prioritization, and overall development strategy.

Also, a sharp focus on business objectives and strategic goals is vital for the continual growth and scalability of a SaaS product. Tech companies specializing in SaaS projects often play a pivotal role in shaping the product strategy, aiding clients in achieving their business aspirations.

Reasons to Choose FiveRivers Technologies for Your SaaS Development Needs

At FiveRivers Technologies, we excel in providing robust and cost-effective SaaS development services. As one of the best software projects outsourcing companies, our expertise lies in crafting exceptionally user-friendly applications utilizing a wide array of cutting-edge technologies. With an impressive track record boasting a customer retention rate in SaaS development, we’ve earned the trust of esteemed organizations.

We offer:

  • SaaS sales outsourcing
  • SaaS development outsourcing
  • SaaS support outsourcing
  • SaaS testing outsourcing
  • SaaS marketing outsourcing
  • SaaS email outsourcing
  • SaaS customer service outsourcing
  • SaaS content outsourcing & much more.

Connect with our experts today for further details.

The Bottom Line

Considering all the advantages of SaaS development outsourcing, it’s evident that it offers a streamlined approach. Instead of overseeing the entire workflow, you gain access to an expert team capable of executing tasks with minimal briefing. There’s no need to handle requirements or team evaluations. Your primary task is to find a reputable SaaS development outsourcing company with expert developers and a proven track record of delivering exceptional projects.

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