Outsourcing SaaS Product Development

Are you looking for an outsource company SaaS product development? Once you are there are several things you’ve probably noticed. Like the fact that you have access to a great number of talents and companies. And with so many options, across several countries, choosing whom to work with can be tricky. To help you navigate the waters, we’ve put together the ultimate guide for why, when, and how to outsource.

Benefits of Outsourcing SaaS Product Development

By onboarding an outsource team you’ll have access to targeted expertise. There are many factors that influence the future of SaaS development. Some examples: Artificial intelligence, the ability to build a Vertical SaaS, and giving priority to integration abilities. This is where a team of experts can really come in handy. Professionals can help you build your product while taking into account current and future trends.

You’ll also be able to streamline the recruiting process. When developing a SaaS product, time is always of the essence. Whereas it takes approximately 35 days to hire a software engineer on average (and the cost is about $50,000) outsourcing SaaS product development is quicker and more cost-effective.

Most companies need the finished product to acquire money so they can sustain and scale in the future. With a tight budget hiring an in-house team can drain your funds before you even get started. This is why many companies choose to hire an offshore agency to work on their project.

Finally, some outsourcing companies offer managed teams that are self-organized. With a managed team, the project manager becomes the point person for all communication and work coordination.

When to Outsource SaaS Product Development

So how can you know if SaaS product development outsourcing is right for your product or not? If you meet at least one of the points mentioned below, you’ll know it’s something you should consider.

1. You Don’t Have The Necessary Skills

Sometimes a lack of qualified candidates can exist within your team or sometimes even the region you live in. This is another case when people outsource. You can always find the skills you need in countries where IT talent is more cultivated and refined. (Spoiler alert: it doesn’t always have to be silicon valley. In fact, you may find the talent you need in the most unexpected places.)

2. Your Team Is Unable to Handle the Workload

If your in-house team is working at full capacity, you may need to onboard another group of developers. Whether you have several projects being developed at once or your team is concentrating on certain aspects of this one, by liaising with an outsource team, they would be able to work at maximum efficiency and not compromise on quality.

3. You’re Looking for a Quick Delivery

When you work with developers that you’ve chosen from across the world, all you need to do is explain your product idea (see tips below) to them and they will get started on the development. When executed properly and with a good line of communication this can speed up your timeline.

How to Approach Outsourcing Specificically for SaaS Product Development

1. Research & prepare as much as possible

The best place to start is on your end. Have a clear idea of what you’ll be required within the scope of your given project. This will help you in your research as you begin to scout prospective outsource companies. To ensure better communication in your initial inquiries or discussions, be prepared. Jott down your requirements and have mockups of your product on standby. When talking to potential companies use your mockups as a guide to indicate where exactly you need their expertise. Odds are, your product also will require a user flow, so have that on hand as well.

2. Explain your goals and vision

Once you’ve started talking to either one or several outsource companies, share your goals and vision. It may seem like you can skip this step, especially since you may be looking for a very surgical intervention from your outsource team, but experience shows that it’s worth taking the time to talk about your product from this angle too.

Talk about what you want to achieve with your product and what problem it addresses — those are your goals. Then move on to the bigger picture — your vision. It’s a great time to share the inspiration behind the product.

The main objective behind sharing your goals and visions is to be able to properly onboard and motivate your outsource team when the time comes. If you see the value in your product, so should they. Share what drives you and stay honest in your communications.

3. Talk to the business development team and CTO for technical points

Generally, most outsource software companies have a business development team that handles all initial communications and are ready to answer any questions you may have. If you feel that there are some technical aspects you would like to cover, don’t be shy to ask for a call with the CTO. This is helpful since it gives you a chance to talk about technical specs and what the company’s capabilities are in terms of coding, tools, and software.

4. Consider your pricing options

This part comes intuitively since no one developing a SaaS product has ever had money to burn. So yes, you will be budget-conscious throughout the development process. However, be equally conscious of the quality of your product and the service level the outsource team is going to provide. If a couple of extra dollars saves you headaches and poor communication or, even worse, a bad launch — of course, it’s well worth it!

To be able to make the best decision, compare the estimations you get from different teams. But more importantly, don’t just compare the bottom line. Rather, understand how each company arrived at the pricing they proposed. Pay attention to the cost breakdown and don’t be afraid of what looks like a high number at first. Just be sure to see what goes into that number and why.

5. Be ready to hear opinions and suggestions

Talking and in a way even consulting with someone who is outside your project looking in is beneficial even if you don’t end up working together. An objective fresh perspective can often shed light on points you may want to clarify in your mockup, goals, or user flow. You may find yourself on a call realizing there are some questions about your product that still are difficult to explain or articulate. This is a sign that you need to go back and simplify what it is your product is trying to accomplish or what you require from the development team.

Pay attention to how they see the SaaS product development cycle progressing, the technical stack they are going to use, and the reasoning behind it.

6. Request a paid trial task

Now that you’re on the same page with the outsourcing team, ask for a trial task. This will help you see the quality of work and give one more motivation point for the company. Some examples of what you might ask for can be, to prepare a project plan or technical architecture or UI/UX for one page. Adjust the task to the type of service you need. This will give you a much better understanding of how the team works, communicates and collaborates.


With this article, we hope you have a more solid understanding of what and how outsourcing software development can help you with your SaaS product. By outsourcing to a competent software development team, you can enrich your project with a talented workforce, quality codes, and speedy development.

BY Flux Team