In-house or outsourcing? What should you choose for your SaaS Application?
Before they develop a SaaS product, startups have to decide whether they’ll outsource the project or use one of their in-house teams.
Consider the pros and cons of each method
When choosing how to create a software product, the most important factors to consider are cost, timeline and flexibility. If you choose to hire an agency, you will be able to spend much less money and release your product much more quickly. However, the agency may not be as dedicated to your solution or understand your problem as well as your in-house team. If you decide to go with a firm, it is critical that you make sure they understand the problem that it is you need to solve.
Pros of outsourcing SaaS
Outsourcing your SaaS product development can be a huge advantage, whether you don’t have the right team in-house or if you simply want to free your in-house team up for other tasks. The two significant benefits of outsourcing project work are cost savings and freeing up resources.
If you choose to outsource, your overhead expenses will be greatly reduced since you won’t need to contract freelance workers for full-time work or hire a team in-house. This approach allows clients to save around 50 percent on average while still producing industry-leading output.
2. You save time for other critical matters
Outsourcing your Saas product’s development can save you time and headaches. While the project is underway, you have time to focus on other things that will help your product launch successfully, like marketing, business development, and legal work.
Pros of in-house development
Software development agencies might not think this way, but we suggest that every startup should aim to have an in-house team at some point. The benefits of having an in-house team are two-fold.
1. Passionate employees
project better because your employees are committed to the company, and they’re not bound by scope budgeEmployees will be more passionate and dedicated to your project than a contractor or agency may be. Also, employees will understand your pt limitations.
2. Full control over the project
When you keep your product development in-house, you can control how it develops and work on changes, new designs, and expanded development. You can also move forward easily if you need to pivot the product.
Cons of Outsourcing
1. Lack of control
SaaS companies that outsource product development to an agency face the risk that their flexibility to change the scope of the project will be stymied should they need to do so. Agencies tend to provide proposals with set deliverables, timelines, and budgets. Should the product need to pivot, it could require that you renegotiate the terms of the contract with the firm in order to redefine what is expected. This shift could result in changes to the timeline and budget.
2. Agency hires are just not the same as In-house team
When you work with an outside agency, the developers and designers will have other projects to work on. This means that although they might be passionate about your project, they won’t have the same commitment as an in-house team. An in-house team can focus exclusively on your project.
Cons of In-house development
1. Cost overruns
As a startup founder, you have to keep payroll costs to a minimum when building your company. A full-time engineer can be expensive, and so can hiring a contractor on a short-term basis.
2. Time-consuming process
When recruiting in-house talent, you’ll need to spend lots of time hiring and onboarding your new team members. This takes valuable time away from other projects like developing the product, which can affect your company’s launch.