Anna possesses impeccable skills in oral and written communication and inspires others with her positive energy.

Anna Łękawa

I am a manager, coach, speaker with more than 15 years in business mostly in IT, Advertising and Training industry working on Agile leadership and project management challenges with such companies as Cisco, Intel, or Unilever. I use my creativity in everything from running workshops to facilitating teams and fostering change. I am responsible for Selleo’s awarded recruitment process.

Dariusz Wylon

Tomasz is a Tech Expert with an enormous experience in both back-end and front-end solutions. He ensures that quality processes and automations are carried out through the whole software development cycle.

Tomasz Bąk

**Software as a service (SaaS)** is one of the most rapidly growing part of the cloud market and the IT industry. The technology is expected to reach [$185,8 billion market size by 2024](https://www.kbvresearch.com/software-as-a-service-market/). Due to rapid growth, market demands are also increasing.

That is why many companies are looking for **SaaS development outsourcing partners** in order to reduce the size of their applications and device memory required for them. This article will present **4 reasons why you should consider outsourcing your SaaS development**.

With every development come challenges (as we wrote in [Top 5 SaaS Development Challenges](https://selleo.com/blog/saas-development-challenges)). What is more, SaaS is also frequently associated with the amount of time and resources needed to design and develop a product.

Not every company has the means to use their in-house staff or wants to go through the hustle of hiring new people. This is where **SaaS outsourcing** comes in.

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## Benefits of Outsourcing SaaS development

### 1. Outsourcing saves you time and money

SaaS ventures often start with a **limited budget** and aim to **reduce development costs** while striving to maximize the final revenue. Producing an MVP becomes a challenge.

By **outsourcing SaaS development**, companies gain a **cross-functional team** that will build the product in the most **cost-effective** and quickest way possible. This team will handle the project from start to finish while requiring little involvement from your side, so you can focus on other business operations.

A great example of a **SaaS company** that decided to work with an outsourcing partner is **Slack** - a cloud-based instant messaging platform. Outsourcing allowed them to quickly deliver an MVP. The strategy turned out to be an amazing success as Slack is used by many companies from all around the world.

Here, we can also mention **AppSumo** - a service sharing deals on high-price software, online courses, and so on, on a daily basis. This $2 million company recognized the benefit of outsourcing and made use of a remote developer for PayPal integration. To this day, AppSumo relies on outsourcing in many areas and projects while managing over 700k subscribers.

We cannot forget about **Expensify** - a tool created to help people store receipts, transactions and manage expenses more easily.\
Expensify contacted an outsourcing international software development house to deal with the back-end while they focused solely on the front-end and business operations. Now, Expensify has over 2 million users and hires over 130 employees.

### 2. Leverage experience and efficiency of specialized service providers

Outsourcing gives you access to many partners with a wide network of **experienced software engineers**. Their efficiency and diversity provide you with masters of UX/UI design, testing, mobile experts, etc.

Leveraging an **outsourcing team** means gaining access to implementation specialists that know how to manage product data and product lifecycle. Those specialists will ensure that your system is well-designed, properly set up and configured accordingly to your needs. You will avoid any instability, boost productivity and find your PLM strategy.

**Outsourcing teams** are specialized in various fields and have experience in dealing with the toughest challenges. They are trained to handle advanced tasks, which will accelerate the development, increasing value and ensuring swift adoption of new technologies no matter the size of your business.

An outsourced team of experts can manage a variety of products thanks to their flexibility and access to different specialists. They give you the ability to **customize out-of-the-box solutions** to fit your precise needs and requirements.

The right team will help you solve your problems, provide guidance and support. Those years of experience in the field allows you to learn from the best of the best.

Choosing to outsource over **hiring in-house** gives you an already coordinated team that works well together.

### 3.  Outsourcing allows more flexibility and scaling quickly

**SaaS companies**, in particular, have to be flexible and able to scale quickly at a given time. Continuous growth and the need to stay up-to-date with the latest features is a necessity if you want to meet the market demands and compete with other companies.

But what to do with the people you hired when your product finally hits the market and you need to scale your team down? With outsourcing, there is no such problem. A remote team gives you the freedom to expand or decrease developers’ velocity accordingly.

An IT [software outsourcing company](https://selleo.com/software-outsourcing-company) gives you access to a wide range of services like product development, UX/UI, maintenance or technical support with analysis.
What is more, you gain a **team of developers** on different skill levels, which means you can mix and match as your heart desires to find what suits you best.

Also, despite some worries about quality and security, the outsourcing company takes full responsibility for the final product’s quality and confidentiality.
Agility allows extreme flexibility to make changes and change the direction of the project mid-development. You can also be sure that in case of an emergency an unavailable developer will be immediately replaced, which means no development standstills.

**Tech stack and solution flexibility** are also what makes an outsourced team a better option than hiring locally or trying to put together a team of freelancers.

### 4. Outsourcing provides affordable talent

As mentioned above, outsourcing gives you **access to specialists in every time zone**.
International team means international hourly rates, which are often lower than those of local service providers.

Generally speaking, we can distinguish **4 major groups of development consultancy companies**, taking into consideration projects price range and hourly rates. The biggest one of them - the Enterprise class - will be skipped here. 

**Big Business class** - their employee number varies between 100 up to 1000 and their offices are usually located in more than one city/country. Here, you can expect $200 - $300 hourly rate and  $125,000 - $5,000,000+ project range. Unfortunately, not everybody can afford this type of development.

**Mid-market class** - they consist of 10 to 100 employees and usually serve small or medium-sized businesses. Their rate varies from $125 to $175 per hour and the general project size from $50,000 to $5,000,000.
Mid-market development companies are a great choice for businesses on a budget and those looking for a **good quality-cost balance**.
Always remember to do a throughout research of them as some will be better, with more experience, than others.

**Small class** - a small number of employees (2 - 10) and low expenses. Hourly rates range from $75 to $175 and the project size from $10,000 to $500,000.
They are often **specialized in one field of development** like front-end, UX/UI or specific programming languages like Ruby on Rails, React, Node.js.
Because of their size, they are often booked months in advance.

We can also divide outsourcing further into **nearshoring** and **offshoring**.
**Nearshore outsourcing** works like offshore outsourcing, but you are working with people in the same or similar timezone. Thanks to that communication and onsite visits can be easier. Nearshore outsourcing gives you cost savings while maintaining the cultural similarities of partners.

On the other hand, **offshore outsourcing** can promise even more competitive hourly rates.
What is more, the timezone differences can work as an advantage allowing a consistent development even when you are not working. This is a great option for companies looking for a **mixed model of development**: having an in-house team while outsourcing other tasks.

## Summary

**Outsourcing your SaaS development i**ntroduces many opportunities and advantages. Many popular **SaaS products** were developed by expert teams from all over the world. Outsourcing saves time and money, provides affordable talent and flexibility of scaling with specialized service providers.

To find out more about SaaS development, read our blog posts on [How To Successfully Scale Your SaaS Development](https://selleo.com/blog/how-to-successfully-scale-your-saas-development) and [How To Design A SaaS Application](https://selleo.com/blog/how-to-design-a-saas-application).

Read also our blog post: [Top 5 Reasons For Outsourcing Front-End Development.](https://selleo.com/blog/top-5-reasons-for-outsourcing-frontend-development)

If you need help with your SaaS development, reach out to our expert team of [SaaS developers](https://selleo.com/saas-development-company).

Many companies are looking for SaaS development outsourcing partners in order to reduce the size of their applications and device memory required for them. This article will present 4 reasons why you should consider outsourcing your SaaS development.

4 Reasons Why You Should Consider Outsourcing SaaS Development

Developing web applications can generally be done in two ways: by an in-house team that you hire and train or by a remote team. Outsourcing introduces many advantages regardless of the size of the business you are running. It gives you access to a pool of experienced IT specialists from all around the world.

If you have never outsourced before or even thought about it, you are probably still unsure whether to hire your own team or to find somebody who will get the job done.

This is a post that will present to you the advantages of outsourcing and hopefully will convince you to do so with your next project.

#### 1. Simpler operations

Hiring an in-house team means you have to start a long process of reviewing resumes, interviewing candidates, etc. It is a full-time job that can last an extended amount of time.

When you finally decide to hire developers, you have to worry about managing them, training, provide them with a workspace.

When outsourcing, you only have to find the right remote team for you and everything else is taken care of by your contractor. They are the ones responsible for hiring the best specialists that will develop your product.

#### 2. Time savings

Since the most complicated operations are handled by the [software outsourcing company](https://selleo.com/software-outsourcing-company), you finally have the time to focus on other business operations like customer care, sales or marketing. This means you will be ready to launch the product almost immediately after the development is finished.

#### 3. Fewer costs

Money savings is another frequently mentioned advantage of outsourcing. Studies say that businesses that outsource can save up to 20% of the total costs of development comparing to those who hire in-house. This difference is present due to different labor costs in countries across the world.

Outsourcing is perfect if you are working on a budget or are trying to cut down some expenses.

#### 4. Speed and quality improvements

Outsourcing is a very competitive market. This is why companies and developers constantly are striving to be better. Even if you happen to hire the most knowledgeable programming specialist, there is probably somebody out there who does it better. Thanks to outsourcing you can now get the best guy and if the company does not meet your criteria you can always go with another one.

All that directly influence the speed and quality of the development. By working with remote teams time-to-market shortens and the overall quality increases. They are often able to propose an innovative solution, perfectly meeting your requirements.

#### 5. Scalability

With a remote team, it is easy to scale your team up or down. During the initial phase of development, you can ask for more developers, designers and project managers. Then, when you go into a maintenance-only mode, you can leave just a couple of programmers, according to your current needs.

Similar flexibility would be much harder to achieve with an in-house team where the work capacity depends on many factors.

### Summary

[Software outsourcing company](https://selleo.com/software-outsourcing-company) is a way to grow your development team without the need to reorganize your company’s structure.

So if this article convinced you that outsourcing is the right fit for your next product, giving you the best of both worlds, our experts at Selleo would be more than happy to help.

Check out our amazing [Front-end developers](https://selleo.com/front-end-developers) and [UX team](https://selleo.com/ux-design) that will provide you with expert knowledge and cutting-edge solutions for your project.

Developing web applications can generally be done in two ways: by an in-house team that you hire and train or by a remote team. Outsourcing introduces many advantages regardless of the size of the business you are running. 

Top 5 Reasons For Outsourcing Front-End Development

Many business leaders forget that outsourcing is actually a complex business strategy. They  do not think much about its influence on the relations with their in-house employees and clients, or how to assess vendor capabilities. Nor do they fully leverage the process or mitigate the associated risks. As an outsourcing vendor for more than a decade, we have summed up some of the key conclusiones which - we hope - can facilitate the process and help you align outsourcing with your broader company strategy.

### 1. Is outsourcing a missing piece in your business strategy?

Some managers optimistically believe that outsourcing will solve a number of their problems. They dive into the relationship head-first and then start to drown. If there is no understanding of the influences of such a decision, the process can be really painful. Conflicts and frustration will arise, which will have a direct impact on your company.
Outsourcing requires focus and involvement, so before you start to look for a vendor you should resolve any existing and potential issues inside the company and thus avoid passing any problems onto the vendor. Your management team has to consider whether:

* it is a right time to outsource 
* you know the structure of your costs
* you have the right management strategies, people and processes 
* outsourcing is really the missing piece to your business strategy
* you know the areas of our business that have the potential to be outsourced

These are some of the key points that have to be addressed before throwing yourself into outsourcing, otherwise the initiative may be at risk of failure.

### 2. Are you aware of the industry outsourcing best practices?

To have a successful outsourcing experience companies have to be aware of and use the industry best practices, i.e. identify them and implement them. There are second to none companies that are well prepared to start the outsourcing process and run it efficiently and effectively - they know how to craft the strategy, identify and select quality vendors, negotiate the terms of collaboration with the latter and finally manage the relationship well. Many of them try to adapt to the constant changes without any preparation, which never ends well. A ready and mature company is not only aware of the industry best practices but also invests in training their people to use proven methodologies.

### 3. Are you prepared to address outsourcing process risks?

Every business venture brings some level of risk. Outsourcing is no different. Before going through with the process ask yourself these three questions:

* what will happen if the vendor fails to deliver
* how will it influence your business
* what are the possible solutions - what is your plan B

The problem of security is something that should also be on your mind. The vendor you choose to work with should have a record proving their strong security precautions and procedures ensuring your IP or data remain well protected. You should consider limiting outsourcing to places where the practice does not pose too much risks. You cannot eliminate the risk altogether, but you can reduce and/or manage it. Think about aspects like:

* is your strategy executable
* are the schedules and time frames realistic
* have you properly researched the vendor
* what are the shared risks
* does the contract secure your interests
* is there a relationship management plan
* are metrics clear

Some organizations like to start the outsourcing process by discussing what will happen when the contracts terminate - reducing the risk in advance and eliminating unnecessary surprises.

### 4. Do you have a proven outsourcing process?

Companies often underestimate the complexity of outsourcing. They rely on their internal management systems even though theses systems lacks the knowledge and experience necessary for successful outsourcing. Consider leveraging experienced vendors that will guide you through the process. They should be qualified in both technology and business as well as experienced in dealing with different cultures.

### 5. Have you setup a team on your side?

As mentioned before, outsourcing is a complex process and it requires dedication from both parties. Not dedicating appropriate internal resources to manage the process is placing your project at risk. People from the inside know the company very well and understand your product, procedures, processes and culture. In most cases, your team should be cross-functional, with people coming from all departments including IT, management, operations, finance, human resources, etc. Your managers should be prepared to limit the responsibilities of the key people and involve them in the outsourcing initiative, which needs to be regularly attended to. 

### 6. Are you ready to manage the outsourcing process?

The outsourcing process requires going through some specific steps. You cannot rush through the stages and expect such a process to work out. Creating requirements for your vendor, evaluating vendors, negotiating contracts all take time. Plan for all the steps needed and take time to implement them well. The initiative takes commitment, time and money and rushing may put your initiative at risk.

Every collaboration needs to be properly managed in order to succeed. A relationship management plan is what holds the relationship together. The plan should include a schedule of activities, resources, budgets, roles and responsibilities, communication plans, equipment, security, etc. The management plan can be prepared straight after the signing of the contract and be revised during the stages of the process. 

Although seen as one of the benefits of outsourcing, cultural differences can also cause troubles. Some people tend to believe that the values they have will be shared by those they work with, but culture has an enormous and sometimes tricky impact on how people think and behave. The vendor may not share your views on your business approach, time management or organizational structure. Let’s not forget language differences. Even if your vendor is a native English speaker there still may be dialect differences. This is why it is important to address any problems as soon as possible, so that they will not escalate and have a negative impact on the whole project.

## Summary

Businesses have to understand the complexity of outsourcing processes before they embark on the outsourcing journey. Their success depends on the understanding of the outsourcing lifecycle, commitment and professional management. An indepth vendor evaluation, planning, contract formulation are crucial in the process. If a company decides to outsource it should connect this process with its business strategy. Managers responsible for outsourcing should be familiar with industry best practices and be aware of the risks involved. With the proven process and experience team responsible for these tasks, an outsourcing can become a vital part of a business strategy.

Many business leaders forget that outsourcing is actually a complex business strategy. They do not think much about its influence on the relations with their in-house employees and clients, or how to assess vendor capabilities. 

Read our articles on Selleo Blog

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4 Reasons Why You Should Consider Outsourcing SaaS Development

Top 5 Reasons For Outsourcing Front-End Development

6 Key Questions Business Leaders Need to Answer Before Outsourcing

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