A successful business is based on a great product. Therefore the success of an organization often depends on how good its product development is.
Product development requires you to focus all your resources on creating something outstanding, which means there are fewer resources left for other company activities. This is why it make senses to outsource part or even all the product development process to save time and money for other aspects of your business.
Outsourcing product development also brings talent from different backgrounds into your team, including talented software developers who might otherwise not work in your industry or product area.
Let’s look at five good reasons why it’s worth outsourcing SaaS product development:
- Hiring full-time employees takes a long time and is expensive
If you’re planning to build a good product, one of the first steps would be hiring a team that can work on it properly. But did you know that according to CareerBuilder, hiring an employee in the US will cost your business around $3,000–5,000?
This may seem like a small amount at first glance but if you add all the other costs, such as insurance or equipment, this number shoots up very quickly. Outsourcing software development saves financially strapped businesses from these “hidden expenses”. In addition, smaller teams have more chance to access talented engineers from all over the world.
- Outsourcing product development allows your business to cooperate with a dedicated team of professionals
Many organizations underestimate the value of having a dedicated and experienced team that works on their product every day, not just from 9 to 5 but from 7 till 7 if necessary.
Such teams are ready to deal with any problem that might arise during the project because this is their main goal: delivering high-quality software that meets customer expectations and makes users happy.
Of course, it’s possible to build a dedicated team in-house, but there aren’t many small to medium businesses who are able to do this successfully. Outsourcing SaaS product development ensures access to ready-to-go, full-time teams of high quality web engineers.
- Outsourcing software development allows your company to focus on its core business activity
As we mentioned earlier, outsourcing SaaS product development lets you concentrate on your primary activities since less time is required to manage individual team members.
But what about monitoring ongoing projects? When an external team works on your product, it’s all about trust and responsibility because there’s no direct employee supervision.
To prevent any harmful effects of outsourcing development, software companies usually take great care to find trustworthy experts who have proven their abilities by delivering high-quality products in the past.
- Outsourcing product development allows your business to save money on office space, workstations and equipment
As practice shows, it’s usually much cheaper to outsource SaaS product development because internal teams require separate offices with enough space for all employees.
In-house software engineers also need laptops and other equipment as well as the usual office supplies, such as printers and stationery, which need to be purchased by the company.
Building an in-house team affordably is only possible once you’ve already established your business and know how fast it’s growing. Outsourcing SaaS product development at the start helps you scale faster, meaning you’ll be able to switch to an in-house team sooner.
- Outsourcing SaaS product development creates happier customers
Providing customer tech support is another important part of product maintenance that can reduce customer satisfaction significantly if done incorrectly.
For example, a customer may struggle with installing your app or even understanding how it works due to a lack of tech support, leading them to give up on your business. Why take this risk? Instead of spending money to hire and train extra employees for first-line support, an outsourced development team will be ready to provide the most qualified customer support available.
Top products with outsourced product development
Skype: a world-famous instant messaging service and online communication platform. It was initially released in 2003 and has undergone continuous improvement since its launch.
Opera: this web browser was created back in 1995 by two Norwegian programmers and eventually became one of the best alternatives to Internet Explorer and Google Chrome.
WhatsApp: one of the world’s most widely used mobile messenger applications, it skyrocketed in popularity over just 5 years following its launch in 2009. Its creator Andrei Parnishchin, ex-team leader at Infostroy, utilised software outsourcing for years and knows how to take advantage of offshore software development capacities.
As we’ve shown, the benefits of outsourcing software development are widespread, regardless of the industry you operate in. Successful outsourcing also increases the speed of customer feedback and reduces development cycle time, which is necessary for any business to grow rapidly.
Just make sure you choose a trustworthy software product development partner who has a proven record of delivering quality products on time, and don’t hesitate to ask them lots of questions. A good team will always be happy to help!