CEO at Relevant

Software-Development-as-a-Service – What is it and How to Use it?

October 18, 2021
Updated: February 8, 2023

Software as a service (SaaS) is one of the largest markets for modern technology, with an estimated $152 billion in 2021. These impressive numbers, however, are not surprising. SaaS has long been at its peak as one of the main categories of IT services, along with PaaS (Platform-as-a-service) and IaaS (Infrastructure-as-a-service).

However, another term has appeared recently, “SDaaS,” which stands for “Software Development-as-a-Service.”

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Are you confused about these abbreviations? Relevant, as an offshore company that provides SDaaS services, will acquaint you with the definition and advantages of this model and its differences from the conventional IT outsourcing model.

What is Software Development as-a-Service?

Many companies now have their own IT department or development team, completing the day-to-day tasks and ensuring everything works as it should. But if you need to implement innovations through web and mobile application development or machine learning models, then your strength may not be enough.

For example, you want to develop a core number of features and launch them for a few months before investing in a feature-rich platform.

Or you plan to add functionality to existing applications but do not want to hire many people and manage a large number of resources.

That is when software development as a service or a dedicated software development team comes into play. It is a very transparent way of software development, so you know what you are paying for and get what you need at the end of each development cycle.

This partnership model is about expanding your business unit by adding a dedicated software development team. They are called dedicated because they are entirely dedicated to your project and do not switch to other tasks.

SDaaS partnership model is about expanding your business unit by adding a dedicated software development team

You will have direct access to every dedicated software developer. It will also be your responsibility to ensure the project’s content, measure the team’s performance, and communicate with them.

The supplier of a dedicated team of engineers takes over the recruitment, retention of employees, IT infrastructure, office space, and HR support. 

Business Benefits of SDaaS Model

The on-demand software development model ensures these processes look like you are working with a team of in-house developers. By choosing this service, you will regulate software development, use new technical knowledge, hire engineers with the experience you need for a reasonable fee. Let’s inspect the benefits:

Helps save resources

SDaaS comes in handy if you need to complete and scale multiple projects, but you have a narrow understanding of the scope and requirements. A dedicated software development team will provide you with an effective collaboration model to help you successfully deliver your projects and keep them growing.

You can also save on your administrative costs. With a dedicated developer team, you will get the staff and all the software and hardware you need on the vendor’s side. This model saves up to 60% in operating costs.

Transparency and scalability

In today’s world, it welcomed a flexible business model with transparency and scalability. With SDaaS, you pay for tasks and work done at your own pace. SDaaS vendors often use the To-Do List Method, which allows them to plan accurate estimates for each project. These improved pricing models result in better planning and faster response times in a rapidly changing business environment.

But please do not confuse the SDaaS model with a fixed price outsourcing format, in which you will pay the agreed amount of money regardless of the hours worked or the work performed. The form of the ad hoc command does not imply this kind of overpayment.

Access to the right skills

Perhaps your company is working on a product that requires particular skills, or you need additional competent people, but your existing core team is busy.

Hiring a software development dedicated team solves this problem, dealing only with your project and attracting specialists needed at different stages.

This option can be even more attractive if you enter a long-term agreement with a defined monthly allocation of costs, which can be increased or decreased depending on the team’s needs during this time.

An alternative approach to hiring

Finding, recruiting, and adapting the right people sometimes take more time and resources than creating a product. Reliable software development outsourcing companies can provide you with the right people as they have their pool of resources.

The SDaaS provider offers you a development team from which you can manually select suitable candidates. You monitor the team’s progress and decide whether you need to reduce or increase the number of specialists by your needs.

Stability and reliability

In many countries, such as Australia or the United States, there is a technical talent shortage. Part of the reason is the high turnover in the IT industry. That means that even if you find and hire experienced developers, the chances are high that they will leave within a year.

The dedicated development team is reliable and committed to the success of your project. You don’t have to worry about burnout by working with a dedicated team because it’s your supplier’s responsibility. Even the departure of a team member will not affect your project because the supplier will replace that specialist with another.

Comprehensive quality control

Unlike freelancers, who may not have QA teams, SDaaS software vendors do. These dedicated QA teams evaluate development results after each completed development phase, run manual and automated development tests, and conduct acceptance tests. And only after you get the finished product.

Reduced time to market

The IT industry is very dynamic, so you must minimize the time spent on software development to gain a competitive advantage. With a dedicated SDaaS team working on one project in the future, their progress is always visible. As a result, your company has the highest chance of being successful in the market.

7 Key Benefits of SDaaS Model

Difference between SDaaS and IT outsourcing development

You may ask if there is a difference between those two because, at first glance, they seem to be identical. However, SDaaS has unique characteristics that set it apart from IT outsourcing. Here are the key ones:

Fast, scalable improvements

SDaaS is a long-term partnership, not ad hoc outsourcing for a single project or service. It is more flexible and can scale faster and more efficiently than outsourced IT models. That means that new functions, new projects, or concepts can be launched and completed more quickly to the highest standards, making IT even more valuable to the success of an organization.

Maintenance and support

With outsourcing, in theory, blind spots in communication and collaboration are possible. You may not know if the software development outsourcing team brings the domain expertise your business needs. If the focus is on project delivery rather than the overall operation of your systems, quality control may not be complete.

However, with SDaaS, you will fully understand your business, and the strict adaptation of your custom systems will keep them high. You can use the development team as a flexible and scalable resource.

System monitoring

Outsourced development teams are often hired only to do the required work without supporting off-the-shelf systems. However, SDaaS includes daily system health and data quality checks to help ensure that the systems you rely on are fit for purpose. That reduces dependence on internal resources or contractors and reduces costly downtime.

Comprehensive flexibility

SDaaS focuses on reducing risk and cost, which means it is highly flexible in efficiency, speed, and capacity when needed. On the other hand, outsourcing options may be limited to a single project or service.

Predictable costs and reduced IT costs

As a one-off project outsourced IT work can be cheaper if there is no need to delve into the business or industry. However, SDaaS builds long-term relationships with predictable costs that are reviewed and approved in advance, which means you can freely budget and get results without the delays associated with long approval cycles or due diligence processes.

How SDaaS is different from IT Outsourcing?

Why Relevant?

As an experienced company with 200+ completed projects, we offer a progressive approach to outsourced software development. All tasks align with the client’s goals within the SDaaS model, from product development services to DevOps.

Regardless of what you require – a full range of individual SDaaS services, we provide results-oriented solutions within a short time frame. In doing so, we proceed from a long-term strategic perspective, not a tactical, project-based one. Besides:

  • We guarantee transparent collaboration, high-quality standards, and maximum value for all our clients.
  • We provide highly trained professionals who can assess and adapt your company’s capacity and demand management capabilities.
  • We strive to develop together with your business always to be one step ahead in a highly competitive market.

Look at several success stories of our work, and maybe your project will become one of them?


Your company is searching for a supplier worldwide but doesn’t know how to outsource development to Ukraine? Click here to find out why Fortune 500 companies choose this country for developing innovative solutions of any complexity.

So, if you want to hire a dedicated team, need access to a specific technology, require software development consulting, or lack expertise in a particular area, Relevant is here for you.

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