The ways businesses can access and use software have changed due to the Software as a Service (SaaS) model and thus a surge of demand has seen businesses demanding more innovative and scalable solutions. With competition heating up, SaaS companies are continually looking to improve their products, while staying within budget. Partnering with offshore web development providers has become one of the most popular methods out there. Having said that, there are several reasons why SaaS companies are adopting this approach.
- Cost Efficiency
Lower Labor Costs
Cost savings is one of the most compelling reasons why SaaS companies decide to outsource to offshore development. But some countries like India, Ukraine and Philippines provide highly skilled developers at much lesser rates than their counterparts in the West. Then SaaS companies have the freedom to utilize their resources more efficiently and spend less on unimportant aspects and more on other important areas like marketing, customer support, or even product development.
Reduced Overhead Expenses
Additionally, outsourcing development can alleviate overhead costs related to having an on premise team: office space, equipment, and health benefits, for example. Companies can utilize offshore resource for focusing on their strategic initiatives instead of administrative expense.
- Access to Specialized Talent
Tapping into Global Expertise
In some cases offshore web development providers have access to a broader pool of talent with special skills that might not be visible in a local market. This translated to that for SaaS companies they can now find developers who are specialists in specific technologies, specific programming languages or specific frameworks which are crucial for their product.
Enhanced Innovation
Working with offshore teams with expertise can bring out unusual views and new processes. Diverse teams see problems uniquely and bring different ways of solving problems and these are exactly the perspectives we need to do interesting cutting edge SaaS apps that provide differentiation in the marketplace.
- Scalability and Flexibility
Rapid Scaling
Most SaaS companies suffer from fluctuating demands triggered by market trends or customer needs. Companies can scale their team quickly and inexpensively through offshore development. Offshore partners provide the capacity necessary to ramp up production for a major launch or to scale down production during less busy times.
Shortened Development Cycles
Since SaaS companies are in-access to bigger pools of developers, it reduces the development timelines. Through the use of offshore teams, we can parallelise various areas of a project thus reducing time to market and keeping companies out front in a competitive world.
- 24/7 Development Cycle
Continuous Productivity
Time zone differences can be taken advantage of to employ a ‘follow the sun’ model of work, where work occurs 24 hours a day, seven days a week. One team sleeps while the other writes code, tests, or implements changes which means faster project delivery and quicker iterations.
Rapid Feedback Loops
It’s nice to have teams across many time zones because then you can get faster turn around on feedback. Regular updates and communication can help teams resolve the issues faster and make the actual development process faster.
- The operations that a business needs to continue focusing on affecting the delivery of products and services customers value.
Outsourcing Non Core activities
When you outsource web development tasks with SaaS companies, the in-house teams are able to concentrate on what they are supposed to do including strategy, engaging with the customers and product innovation. It can result in growth and thereby make the company perform better.
Strategic Initiatives
Offshore development enables internal teams to focus more time on crucial strategic projects such as enhancing customer service, optimizing marketing tactics and investigating new business possibilities.
- Mitigating Risks
Its Diversified Development Approach
Offshore teams can also mitigate risks associated with single location operations, by partnering with them. Diversifying the development resources allows the SaaS company to mitigate the influence of local market variations, economic uncertainties and inequalities in the development speed.
Quality Assurance
Offshore providers with a good reputation frequently have well developed processes for quality assurance. Therefore, by working with these teams, SaaS companies can be confident of quality deliverables, and minimize the risks of product launch.
- Improved Time-to-Market
Quickly Develop and Deploy
Rapid software development and deployment is something SaaS companies need if they want to outdo others in the game. Companies that opt for off shore providers help speed up the development cycle and companies can bring their new features and update sooner than usual so that they can respond immediately.
Faster Iterations
Offshore teams tend to use agile methodologies and by affiliating themselves, you can take advantage their faster iterations and continuous improvements. It can, however, make the whole product better and improve the user experience.
Conclusion
The world of SaaS is moving fast and companies need to move with it to stay ahead. SaaS companies can enjoy substantial cost savings, gain access to expert talent and have the flexibility they require to flourish in a competitive market by relying instead on offshore web development providers.
When SaaS companies have the correct offshore partnership in place, this not only simplifies development, but also supports innovation and ultimately leads to more superior products for customers. As the market grows, becoming another SaaS provider will become more accessible, but leveraging global talent will most likely be a key differentiator for successful SaaS providers. Offshore development has been the tendency of this world and with it, the possible options for the development of your SaaS business have increased many times.