Developing SaaS applications is the next logical step on your way to business growth. However, transforming your existing solution into SaaS or creating it from scratch requires a deep understanding of SaaS specifics, SaaS development best practices, and possible pitfalls you have to avoid.
This article will help you get an insight into Software as a service development and outsourcing so that you can transform the technical advantages of SaaS into your business growth opportunities.
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Standing for Software-as-a-Service, a SaaS app is a cloud-based software delivery method that comes with a flexible and customized set of features depending on the different needs of the user groups that enable you to access data from any device and web browser with an Internet connection.
Its subscription-based, on-demand nature frees your clients from having to install it locally on their devices, as well as upgrading the hardware required to run it. Clients usually use SaaS solutions from connected devices via an Internet browser or different APIs while the software provider carries out all maintenance. Typically, its infrastructure is maintained by a third-party cloud-computing provider.
The flexible and cost-effective nature of SaaS apps is the main reason for their popularity: according to Statista, the SaaS market is expected to reach $282.2 billion in 2024 and $374.5 billion by 2028, representing a CAGR of 14.4% from 2023 to 2028. That’s why building SaaS applications for your business and customers can be a future-proof tactic to create a competitive edge in the long run.
Below are several approaches to SaaS application development architecture.
Single and multi-tenant SaaS architectures, along with their various forms, are not the sole choices available. If you think about how to build a SaaS application you should also take Serverless Architecture into consideration.
Depending on the industry SaaS apps are created for, they can also be classified into the following types:
| Industry | Type | Description | Examples |
| Business Management | Customer Relationship Management (CRM) | Manages interactions with leads, customers, contacts | Salesforce, HubSpot, Zoho CRM |
| Enterprise Resource Planning (ERP) | Streamlines operations like finance, inventory | SAP, Oracle NetSuite, Microsoft Dynamics 365 | |
| Project Management | Aids in planning, tracking, and collaboration on projects | Asana, Trello, Monday.com | |
| Human Resources (HR) | Manages employee data, payroll, benefits | Gusto, BambooHR, Namely | |
| Marketing & Sales | Email Marketing | Manages email campaigns, automates newsletters | Mailchimp, Constant Contact, ActiveCampaign |
| Marketing Automation | Automates marketing tasks, workflows | Marketo, Pardot, HubSpot Marketing Hub | |
| Social Media Management | Schedules posts and analyzes performance | Hootsuite, Buffer, Sprout Social | |
| Content Management System (CMS) | Creates and manages website content | WordPress, Wix, Squarespace | |
| E-commerce Platform | Sells products online | Shopify, BigCommerce, WooCommerce | |
| Communication & Collaboration | Team Communication | Enables chat, video conferencing, file sharing | Slack, Microsoft Teams, Zoom |
| Document Collaboration | Allows real-time document creation, editing, sharing | Google Docs, Microsoft Office 365, Dropbox Paper | |
| Design & Development | Graphic Design | Helps to create and edit images, graphics | Canva, Adobe Creative Cloud, Figma |
| Web Development | Builds and manages websites, applications | Squarespace, Webflow, Wix | |
| Code Development & Version Control | Assists in writing and managing code | GitHub, GitLab, Bitbucket | |
| Specialized Solutions | Industry-Specific Software | Tailored for specific industries like healthcare, education | LawLogix, Nuance Dragon Medical One, PowerSchool |
| AI & ML | Offers AI-powered functionalities for tasks | Salesforce Einstein, Amazon Rekognition, Google Cloud API | |
| Data Analytics & BI | Analyzes data, tracks metrics | Tableau, Looker, Google Data Studio |
While the core principles of SaaS development remain constant, the nuances and best practices evolve with each passing year. Here’s a concise overview of the critical aspects of SaaS application development in 2024:
Understanding and implementing these specifics can significantly contribute to the successful enterprise SaaS platform development.
SaaS (Software as a Service) and web applications both operate on servers but differ significantly. SaaS is a subscription-based model providing access to software via the Internet without local installation, allowing users to log in and use the software remotely. In contrast, web applications are browser-based programs offering specific functionalities, like currency conversion, to a broad audience.
While SaaS-based applications often deliver more complex features scalable with subscription plans, many SaaS solutions also offer web versions, blurring the lines between the two. For instance, Slack is accessible via both web and dedicated apps yet remains SaaS-based.
SaaS app development offers significant advantages in 2024, including:
SaaS allows for rapid adjustments to meet changing needs without waiting for software updates. It eliminates the necessity for extra hardware, enabling access from any location with an internet connection.
SaaS models offer various pricing plans, enabling businesses to start small and scale. Tailoring features to subscription plans helps meet user needs affordably.
SaaS provides more stable sales and profit forecasts through monthly subscriptions or annual payments.
Unlike traditional software that may suffer from delays, SaaS applications operate on centralized servers, ensuring quick response times and seamless user-system interactions.
Creating a cloud-based SaaS application requires following a systematic sequence of steps, essential for crafting a dependable, scalable, and accessible product. Below is a stepwise guide to this process:
Begin by confirming the viability of your SaaS concept. Conduct market research to pinpoint your intended audience, grasp their requirements, and evaluate your competition.
Detail your business strategy for generating revenue and attracting customers. Decide whether you’ll offer a freemium model, subscription tiers, or a one-time payment structure.
Define the features and functionalities of your application, ranking them according to insights from your market analysis and the fundamental value your product offers.
Choose suitable technologies for the frontend, backend, database, and other essential components. Consider factors like scalability, maintainability, and the availability of development talent.
In SaaS design, emphasis is placed on ensuring simplicity, usability, and accessibility. Develop wireframes and prototypes to map out the user journey and visualize the interface design. Also, keep in mind that mobile-first SaaS is one of the strongest SaaS programming trends for 2024.
Begin the development process based on the planned features and design. Adopt agile methodologies to iteratively develop, test, and refine your application.
Implement robust security measures to protect user data. Ensure your application complies with relevant regulations (e.g., GDPR, HIPAA) from the outset.
Perform comprehensive testing, covering functional, performance, cloud security evaluations, and user acceptance testing (UAT) to detect and resolve any problems.
Choose a reliable cloud service provider for hosting your SaaS application. Deploy your application and monitor its performance closely.
Prepare for the official launch with a marketing strategy that includes SEO, content marketing, social media, and email campaigns to attract users.
Post-launch, proactively gather feedback from users via surveys, usability testing, and analytical data. Use this feedback to make informed updates and improvements to your product.
Continuously update your application with new features and enhancements based on user feedback and market trends. Plan for scaling your infrastructure as your user base grows.
Following these steps methodically will guide you through the complex process of building a SaaS application, from ideation to launch and beyond, ensuring a product that meets the needs of your target audience and stands out in the competitive market.
Despite adhering to Agile and LEAN methodologies, SaaS application development can encounter unique obstacles:
A fundamental hurdle involves creating a product that aligns with the changing needs and expectations of customers. To address this, adopt a customer-focused approach from the start, thoroughly research customer requirements, and integrate their feedback into your product design.
It’s crucial to build a team with a service-oriented mindset, familiar with the nuances of SaaS projects, and committed to delivering solutions that address users’ issues. Opt for professionals experienced in SaaS development who are motivated to create impactful software services.
For SaaS applications to be scalable, choosing the right technology stack is vital. Consulting with a SaaS development expert can help identify the most suitable technologies for your project, ensuring scalability and performance.
If your application wasn’t cloud-based initially, plan your migration strategy carefully, choosing between physical-to-virtual, physical-to-cloud, virtual-to-virtual, or virtual-to-cloud options based on your specific requirements.
In SaaS software development, a Project Manager leads the team, ensuring tasks are assigned, deadlines met, and project goals aligned. A Business Analyst assesses the market potential to shape a solid business strategy, while a UX/UI Designer focuses on crafting a seamless and visually consistent user experience.
A Back-end Developer handles server-side development, utilizing scripting languages to ensure functionality. At the same time, a Front-end Developer implements the client-side code to translate designs into interactive elements. Finally, a QA Engineer identifies software bugs and issues for resolution to maintain quality.
Additional roles, like a Technical Writer, Marketing Specialist, or Product Manager, might be needed based on the project’s scope and budget. A DevOps Engineer role becomes crucial if you need DevOps for SaaS projects.
To hire a cross-functional team, consider partnering with a software development vendor that can provide a comprehensive, product-centric approach.
For SaaS (Software as a Service) software development, certain technologies stand out for their reliability, scalability, and community support. These technologies form the backbone of many successful SaaS platforms, enabling developers to build powerful, user-friendly applications. Here are some of the top popular technologies used in SaaS software development 2024:
These technologies provide a solid foundation for developing SaaS applications, offering developers the tools they need to create scalable, secure, and efficient software solutions.
The majority of SaaS development costs stem from the salaries of developers and key team members. Building an in-house team also incurs hiring and onboarding expenses.
So, how to build a SaaS application in the most cost-effective way? To minimize costs, consider outsourcing software development, paying only for the hours worked plus any vendor fees. Outsourcing can offer significant savings depending on the location while still providing access to expert SaaS development skills.
This is just the point that makes SaaS development outsourcing effective – depending on the outsourcing destination, you can save significantly and still access top SaaS development expertise. Let’s compare the opportunities.
The monthly salary to hire a SaaS developer in different countries:
| Country | Average Monthly Salary (USD) | Source |
| United States | $9,158 | ZipRecruiter.com |
| United Kingdom | $8,800 | reed.co.uk |
| India | $3,000 | payscale.com |
| Ukraine | $4,000 | DOU |
Outsourcing SaaS development to Ukraine offers an excellent quality-to-cost ratio. Ukrainian developers are known for their alignment with Western business values, strong education, work ethic, and English proficiency. Additionally, Ukraine’s GMT+3 time zone facilitates effective collaboration with EU and US businesses.
Choosing a SaaS development partner? Look for one with proven experience and up-to-date technical skills. Relevant, with ten years in the field, has worked with growing global SaaS companies, such as:
Ready to join our client list? Our skilled SaaS software developers are eager to assist in creating an application that aligns with your user expectations and business objectives, ensuring it’s robust, well-crafted, secure, and scalable.
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