Software as a Service (SaaS) is also called Cloud-based software or on-demand software and even web-based software. It is now the default deployment mode of all software technology for all businesses, big or small.

It is a method where a software application is delivered as a service over the internet. These applications run on a provider’s server and a SaaS development company has got control over the accessibility, availability, and security of the infrastructure.

The provider also maintains the database and the coding of the software application. The user can access the application with just an internet connection and a browser. Because of its easy usage, 60% of the total software demand is for Cloud-based applications while less than 10% goes for in-house software models.

The concept of SaaS originated in 1961 in a speech by computer scientist McCarthy when he said, “computation would become a public utility”. The last decade saw the rapid growth of SaaS and its increased acceptance in the industry. In SaaS technology, the Cloud infrastructure is owned by a software development company but your data ownership remains with you.

This means that you can access your data even after the service provider goes out of business. The vendor or the service provider is liable for all updates and securities and level of uptime making it hassle-free for you.

The Features of SaaS

The SaaS model allows each user to access services that are both reliable and secure without divulging their data or information.

The features that make it so applicable are:

1. Multiple User Model

All users share a common application that is centrally controlled by a software development company. This central control allows quick innovation and faster up-gradation.

2. Customizability

The model allows customization of the application by each user to suit his business needs without affecting the common database. Each user can have unique customization which is upgraded by the provider regularly at a low cost.

3. Better Accessibility

With SaaS software development accessibility of data from any device has become much easier. Even monitoring the data usage is much easier and it ensures less customer risk.

4. No Extensive Hardware Requirement

The technology allows users to outsource IT troubleshooting solutions that are generally associated with on-premise software. There is no need to install updated hardware or software.

5. Subscription Mode Of Payment

The SaaS applications are paid every month and so no huge investment is needed. Maintenance and up-gradation charges are the SaaS development company's burden.

The Advantages And Disadvantages of Using SaaS

1. No Capital Investment

It reduces heavy capital investment as well as operational cost overheads, maintenance, and up-gradation cost.

2. Best For Startups

It is best suited for small business houses where in-house system installation is difficult. The software can be obtained on monthly rental and usage can be scaled up and down as per demand. This immensely helps businesses with a restricted budget.

The Demerits of SaaS Are Few But Still Quite Problematic

• You have to hire top app development companies to integrate the application with existing on-premise software which is quite problematic.
• Security issues may arise with this model so the accessibility of data must be taken care of and checked regularly.

Some Examples Of Successful SaaS Applications

1. Lumen 5

It allows businesses to create videos automatically from the text. It is a very successful SaaS technology application integrated with AI to create exclusive videos.

2. Buffer

It is a SaaS application that helps in social media management for all businesses.

3. Dropbox

It is another very successful SaaS business idea that helps companies to store and share files from anywhere.

4. Amazon Web Services

AWS offers more than a hundred services which include e-wallets, logistics, commerce, etc.

5. Hubspot

It is an example of a successful and cost-effective tools for SaaS growth product. It provides marketing, CRM, and all software services to its users.

The Benefits Of Outsourcing SaaS Development

The development of SaaS is outsourced to top SaaS development companies because it has several benefits.

1. Saves Money And Time

Outsourcing enables you to use a multifunctional skilled team that can design an MVP in a minimum amount of time and budget. They are capable of handling the complete project without any interference from you. A quick prototype reduces the cost and time involved, thus increasing your acceptability in the market.

2. Access To Expert And Specialized Professionals

By outsourcing, you will get access to a wide range of highly skilled software professionals from a global HR pool. They are responsible for the quality of the product. Usually, such outsourced services have a low cost and zero HR expenses. You get a full-stack team with expertise in UX/UI design to cross-platform viability testing, that too at the lowest budget.

3. Faster Up-Gradation And Easier Maintenance

Any software application has a very small lifespan and needs continuous up-gradation to meet the ever-changing market needs. Outsourcing will enable up-gradation and the addition of new features to the application regularly. 

Hire dedicated developers who can help you to be more flexible and scale quickly as per market demand. You even have the option to scale down your team once the project is launched, thus reducing your cost.

4. USMCA

This is a trade and tariff agreement between the North American countries to support fair trade practices and more free markets. It allows nearshore outsourcing for better economic growth in North America by breaking the trade barriers that hamper the export of technology.

Two Areas of Concern While Outsourcing SaaS Development

1. Communication

In most cases of outsourcing cultural and time zone differences make communication ineffective. This leads to a loss of efficiency and productivity. Hiring an in-house manager to look over the outsourcing would help to negate this issue.
 

2. Company Morale Is Downsized

Fear and threat of firing can downsize a company’s morale and cause dissatisfaction among its in-house staff. Proper and transparent communication from the management can solve this problem and boost the morale of employees.
 

Endnote

Outsourcing has more merits than demerits, so most companies opt for it. Outsourcing usually results in some great SaaS business ideas because of the talent available.

Cost-effectiveness ensures high-quality products while time-saving enables quicker market takeover so now most companies prefer to outsource their work to the best software development company.
 

But before you finalize on an outsourcing partner you need to analyze the risk, which will save you from future disasters.