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10 Tips on How You Can Outsource SaaS Development

April 05, 2022

There is excellent value in SaaS (Software as a Service) outsourcing if you plan to develop an SaaS application or expand an existing one. Since many businesses have moved towards virtual services, there are many instances when you may require SaaS. It is not feasible for most companies to hire an in-house team as these services are only needed on a per-project basis. Even if you are a tech-based company, you may benefit significantly from outsourcing SaaS. You cut costs, but you also have access to an experienced team of professionals.

The catch lies in finding the right service provider to collaborate with. Here are ten great tips on SaaS outsourcing to help you make the best decision for your business.

What is SaaS? 

SaaS, or Software as a Service, encompasses all the steps of developing and maintaining software, from planning, design, coding, testing, integration to implementing the final product. You can choose to hire an in-house team or outsource the entire project. Most companies rely on the latter because of the cost-effectiveness and efficiency.

If you are planning to outsource SaaS Development, there are three models that you can choose from:

Part-Time Outsourcing: This is when you have an in-house team but require additional resources or higher expertise to complete some tasks. You only outsource a portion of the project with part-time outsourcing while the rest is assembled in-house.

Dedicated Team: You can hire an entire team for a project. It is the ideal option when you do not have the time to train an in-house team or the necessary resources to manage a large-scale project.

Fixed Price Model: When you do not have much scaling up or drastic changes to make with your product, a fixed price model is your best bet. It is a one-time investment to get a dedicated team or an individual developer to work on your project and deliver it within the said timelines.

With SaaS outsourcing, you also choose between onshore, nearshore, or offshore outsourcing. Onshore is when you outsource within your geographic location, and nearshore or offshore is when you outsource outside your geographic location. When working with a tight budget, offshoring is your best bet. Countries in South Asia, Eastern, and Central Europe are the best options for you as they help you find the expertise you need at the most affordable prices.

10 Tips To Outsource SaaS Development



No matter what option you choose when outsourcing your SaaS development, there are some factors that you should keep in mind to get the best outcome.

Here are ten great tips to help you with your search for the ultimate Saas Development outsourcing options:

  1. Have A Clear Business Strategy
  2. This is the most crucial factor in deciding who your SaaS development partner will be. If you want to use an application to present your business ideas, several options are available today. Millions of apps are available for almost every service, from healthcare to food. To succeed with your development plan, you need to have a unique business plan.You should be clear about your ideas, the roadmap, and the policies for your business. Once this is in place, you will be able to find the right SaaS development company to work on your project. You can ensure that your vision aligns with their capabilities and that you are in sync with each other concerning the policies.

  3. Evaluate the Company With The Help of an Expert
  4. Testimonials and reviews are a great starting point to understanding the credibility of a SaaS development company. However, they are not enough in the world of fake reviews. In addition, there is a good chance that many issues faded out through the development process, leading to a positive review in the end. This, however, could be a significant issue for you.Therefore, it is recommended that you find an external expert with experience with software development companies to evaluate them thoroughly. They will be able to understand the procedures followed by the company and help you figure out if that is what you need for your vision.

  5. Understand the Expertise of the Company
  6. Every SaaS company has domain expertise. They may be better equipped to fulfill specific requirements better than the others. Therefore, you need to study their professional skills thoroughly. You can ask them for any certification information and their standards. You may even run a thorough background check of the degrees and experience of various team members in the agency.This will give you an idea about the technology that the company is proficient in. You also have the option of reviewing their accomplishments and the software they have implemented in the past.

  7. Don’t Let Price Be the Only Factor When Making a Decision.
  8. No matter what quote a company offers, you will always have someone who can get the job done for a lower amount. You need to evaluate the reason for the difference in the cost. More often than not, when you choose the cheaper option, you have to make some compromises in terms of the resources and expertise available at your disposal.To get the best outcome, you need to find a SaaS development company that gives you the right balance of quality and affordability. That is when you get total value for your money. You may have to review several companies and allow them to bid to make an informed decision. Think about expertise, reliability, and convenience before you sign anyone on for the job.

  9. Review Samples and Portfolios
  10. The company’s previous work bears testimony to its quality and style of work. Of course, you cannot base your decision solely on this. The company you chose should be able to match your expectations and give you the desired outcome. So, start by asking them to provide you with a basic outline or flowchart for how they will handle your project.When a company truly wants to partner with you, they will give you a rough concept that allows you to check their problem-solving techniques and approach. Of course, you must refrain from asking them to do a part of the project for free to make the final decision. Qualified professionals should not be expected to do any work without getting their reimbursement.

  11. Please make Sure They Use the Correct Project Management Tools.
  12. Communication is crucial for your project to succeed. Using the right project management tools helps you keep track of the latest development and also allows you to update job requirements. You can even catch any errors or mistakes at an early stage.This is vital for time management, especially when working on strict timelines. Therefore, choose a SaaS development company that uses the project management tool that suits your needs. It would be best if you also looked for a sprint-based review of development to avoid any gaps in the communication and the overall process.

  13. Set Milestones That Are Realistic
    Unrealistic expectations are the most common reasons for the failure of any software development project. You must have milestones to measure success and get quantifiable data about the development process. Even if you find a company that agrees to deliver these unrealistic milestones, you will find that it only adds stress as the project advances.Before outsourcing the project, make a detailed analysis with the team and set milestones to keep you and your team motivated.
  14. Find The Right Sources For Your Leads
  15. If you go on a search engine and look for the best SaaS companies, you will find many options. Often, we go with the top-rated companies, only to discover that they do not match the expectations.Instead, get your leads from B2B websites for better results. These companies are dedicated to connecting two businesses based on their requirements. Every listing is thoroughly verified. Therefore, you can be sure that you connect with the right teams and companies to make your dream project a reality.

  16. Ensure Proper Documentation
  17. Proper documentation is a must when you sign up with a SaaS company or agency. These documents include essential details such as the significant development phases, timelines, and costing. You must have complete transparency throughout the project.You will also be able to keep track of the project through correct documentation. If the company does not offer proper documentation, it is a definite red flag.

  18. Check Their Quality Assurance Policy
  19. Every credible SaaS agency or organization has a quality assurance team working for them. Testing is an integral part of the development process. It ensures the successful implementation of the final project. The SaaS company that you outsource your project to must be able to carry out QA testing and support these protocols within the budget for your project.Your project should be tested regularly and at every development stage to ensure that the application is efficient and bug-free. This lets you solve the issues even before they arise.However, it would be best if you were prepared for bugs that may crop up after implementing the software or during the beta testing stage. You can address them on time only if you have a QA team dedicated to your project.

Why Outsourcing SaaS is a Better Option

Now that you know how to choose the right SaaS development company, you must also know why outsourcing is the best option for you. If you have the budget and the requirement, you can hire an in-house team, no doubt.

However, if you choose to outsource, here are the benefits that you get:

A more comprehensive range of technical expertise: When you choose the correct SaaS vendor, you get the advantage of a team with diverse skill sets and expertise. They have experience working for different domains and completing more complex products. This knowledge puts them in a position to find the most efficient solutions for your project.

You don’t have to worry about staffing: A shortage of skilled developers is a real issue. HR professionals agree that the biggest challenge is hiring qualified tech experts. You must also provide increments according to company policy, manage the payroll, train your in-house team, and put in several resources to ensure that they deliver the quality you expect. With the IT market growing so fast, finding a talented in-house team will remain a challenge for several years to come. On the other hand, outsourcing allows you to work with an already well-established team.

Lower costs: Studies show that outsourcing SaaS requirements can cut your budget by almost 40%. Most vendors are also hired on a contract basis. This means that you can plan your budget more accurately.

Time to the market reduces: Time to market is a crucial factor for any Saas project to be successful. You must introduce your idea into the market before anyone else does to get the returns that you want. In that case, there is no room for error. When you outsource the project, you can save valuable time that would otherwise be spent on hiring and onboarding a cross-functional in-house team.

No need for micromanagement: You can leave the development part to the experts and work on the business strategy. Outsourcing your project allows you to work with trained professionals who can plan and execute the entire project without micromanagement.

If you are convinced that outsourcing is the right choice for you, get in touch with Bitcot today. We give you access to qualified professionals who can build your project from scratch. Our experience, knowledge, and network in the SaaS market help you get the best value and returns on your investment.


Author: Raj Sanghvi

Raj Sanghvi is a technologist and founder of BitCot, a full-service award-winning software development company. With over 15 years of innovative coding experience creating complex technology solutions for businesses like IBM, Sony, Nissan, Micron, Dicks Sporting Goods, HDSupply, Bombardier and more, Sanghvi helps build for both major brands and entrepreneurs to launch their own technologies platforms.

Visit Raj Sanghvi on LinkedIn and follow him on TwitterView Full Bio

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    Dave S

    Dave S

    Co-Founder- StompSessions


    I have Known BitCot for 4 years and have been impressed with the diversity and quality of BitCot work. With that solid foundation it was really easy to select BitCot as our development partner.