You’re an independent developer. You’re someone who is building your business from the ground up. Chances are you’re funding everything yourself. You may even work full-time while building your product on nights and weekends.
At some point, you simply won’t be able to do anything else. You’ll be too busy. Stretched thin. What do you do?
A recent post on Finextra highlighted how many companies, both new and enterprise-level, are outsourcing tasks. Over half are using third-party teams for something, turning outsourcing into a nearly trillion-dollar industry.
How does SaaS outsourcing fit into the mix? It offers a powerful lever for rapid growth, access to niche expertise, and a solution to common resource constraints.
Let’s discuss the nuances of outsourcing your SaaS. We’ll highlight what to farm out, dissect when it’s right to do so, and weigh the benefits against the risks. Let’s get started.
Table of Contents
Current Trends in SaaS Outsourcing
The need for Saas outsourcing and the industry’s absurd growth show how the global marketplace for tech talent has become a level playing field.
Startups are recognizing the treasure trove of value that a diverse, global workforce brings. From development to design and support, the outsourcing model is on an upward trajectory, allowing startups to not just survive but thrive.
The Surge of Strategic Partnerships
SaaS companies should form strategic partnerships with specialized agencies and freelancers. Software isn’t the only “as a service” industry around. You can leverage the partnerships for everything from marketing as a service to customer support.
This trend reflects a broader understanding that having a partner who is an expert in a specific niche can accelerate time to market and assure product quality.
Global Talent Pools Rattling Traditions
The myth that all good software is only created in Silicon Valley is busted. New knowledge hubs are emerging, and with them, talented developers and designers.
Companies that tap into these diverse talent pools drive innovation and push the boundaries of what’s possible in SaaS.
You can find cheap, quality talent in every corner of the world. And if you’re on a shoestring budget, outsourcing tasks to inexpensive freelancers can save you a ton of time and a fortune in spending.
What to Outsource in SaaS Development
Not every aspect of building a company and growing it needs to be handled in-house. Here’s a breakdown of components that can be effectively outsourced without compromising on quality.
Outsource SaaS Product Development – The Backend
For many SaaS businesses, the backend is where the magic happens. It’s the engine room of the service.
Managing databases, processing business logic, and ensuring smooth functionality is tedious and time-consuming. Outsource SaaS product development for a smooth, scalable, robust product.
Frontend Development
The front end is what users see and interact with. It’s the window into the soul of your SaaS offering.
And most developers are surprisingly uninterested in the best practices for SaaS websites. Outsourcing can be the hero you deserve.
Engaging a talented design team can elevate your product, making it intuitive and enticing to your target audience.
Customer Support
Following SaaS customer support best practices is vital to startup success. It’s not just about troubleshooting. You want to build real relationships with customers.
But you don’t want to answer the phone yourself. You don’t want to talk to people, you want to build and run a SaaS company.
We get it. Even CJ gets it. He gets his mom to call in sick for him at least once a month.
Outsourcing customer support to a team that’s available 24/7 can turn support from a cost center into a business value driver.
Marketing as a Service
Outsourcing your SaaS marketing efforts to a specialized agency or freelancer can bring fresh ideas and expertise to improve brand visibility and organic reach. It also allows you to focus on what you do best – building and improving your product.
B2B SaaS Sales Outsourcing
Having a dedicated sales team can be costly, especially for startups. And you? Well, chances are you’re a developer or a non-technical SEO with a specific skill set that helps the company grow. Maybe sales is your forte. But if it isn’t, getting early revenue from an experienced team is a no-brainer.
The benefits of B2B SaaS sales outsourcing are numerous. You get access to experienced sales professionals who can help your business expand its market reach. Effective sales strategies improve conversion rates. Your internal teams are free to focus on core business functions.
When to Start Outsourcing Your SaaS
Timing is everything in business. Knowing when to begin your SaaS outsourcing strategy is vital. There is no set number as far as revenue goes. It’s a matter of what you need and getting the maximum juice out of the squeeze.
Building a large team is often cost-prohibitive in the early stages. Strategic outsourcing allows startups to keep the runway as long as possible. They can use capital to grow the business rather than fund a large payroll.
But, as a SaaS business scales, outsourcing can provide a flexible way to manage variable demand and avoid the pitfalls of overstaffing.
If your in-house team is overwhelmed with workload, if you find expertise gaps in your staff, or if your development timelines are slipping, these are clear signals that it’s time to consider outsourcing solutions.
Benefits of Outsourcing SaaS Development
The benefits of outsourcing SaaS development have a plethora of pros with fewer cons. Here are some of the benefits associated with a SaaS outsourcing strategy.
Cost-Effectiveness
Outsourcing can provide incredible value. With the right contract and partner, the cost of development can be reduced, particularly in comparison to the expense of hiring and maintaining a full in-house team.
It’s not just the salary you need to consider. The hiring and onboarding process is incredibly expensive.
Think about every facet of bringing on a new full-time employee before you pull the trigger. And then weigh those costs against the expense of outsourcing to a qualified agency or freelancer.
Access to Specialized Expertise
The SaaS world is multifaceted, and no single team can be an expert in everything.
Outsourcing allows you to tap into specific skills that are necessary for your product but aren’t required full-time.
SaaS Outsourcing – The Cost of Fast and Efficient Scaling
SaaS outsourcing is a strategic move that can catalyze success for startups and independent developers.
Identify the components that you can outsource. Understand when to make moves and know the potential benefits and pitfalls.
You can start walking a path for your SaaS development that’s efficient, cost-effective, and successful. If you need help but aren’t ready to start outsourcing, maybe you need some AI in your life. Check out this post on AI for SaaS companies to see how it can help you.