Software as a Service is becoming an increasingly popular commodity with a wide range of benefits. SaaS software allows users to access advanced features without investing in full-fledged infrastructure for hardware/software setups that could be really expensive. Thus, there’s no doubt that the cost factor needs to be considered for developing SaaS software in the first place.
This article will explore different facets of SaaS development cost, the factors affecting it, and what you can do to reduce incurring these costs.
Saas Development can cost a lot depending on the scope of the platform being built. Typically, the cost ranges from $5,000 to over $50,000 for SaaS software development. The cost of hosting a SaaS service is an added expense beyond the development cost.
Various factors could determine how much a particular SaaS product will cost for development. These range from the features, integrations, and flexibility to many more aspects.
There are various factors that can sway the development cost for SaaS products. Each of these factors affects the price differently and to different extents. Some of these are direct SaaS developmental costs for your project, while others are indirect expenses to complete the development.
The key factors that affect cost determination for SaaS development include:
One of the main factors that come into play for your SaaS app development is how scalable and connected you want your platform to be. More robust software needs advanced levels of connectivity and should be highly scalable. Do you require additional storage capacity or multi-usage compatibility with your app?
How many systems do you need to be actively connected with for a smooth operation? This is one factor that would determine the cost.
The cost of developers, testing professionals, management and support individuals involved is a significant one. The level of experience and diverse skill set of the development team greatly determines the human cost for the entire development process. Depending on your requirements, every software project calls for a different set of skills from project managers, developers, architects, designers, and testers.
The per hour rate of junior, intermediate and senior level professionals vary greatly and forma significant part of the total SaaS development project budget.
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Multi-tenancy refers to the ability to run independent instances of your app in a shared environment. This is often required with SaaS platforms to allow users to use multiple instances simultaneously. The more robust you need your system to be in this aspect, the more expensive it usually gets.
Adding customization options is another factor that can affect the cost. Making this flexibility available requires more groundwork on the infrastructure end. Thus, your requirements of what you wish to offer with your SaaS software determine a lot.
This aspect is quite apparent. You pay for the features you want built-in and how complex your system is going to be. Listing out your most essential features and running a cost to quality analysis on them can be an exciting way to weigh out which features are the most essential for you to have.
Do you want your system to be flexible and configurable to new settings depending on your use case? These are some aspects that can shoot up the overall cost of development.
In the end, a particular business might have the requirement for specific API integrations for the backend. While many fundamental features are built from scratch, some SPI integrations boost scalability and reduce cost as well. Any additional features that you might want to accommodate will have their own cost, adding to the total.
However, bringing out features from robust API integrations can be an excellent way to go easy on your budget while also making the process quicker.
Another aspect of collecting expenses is through any costs that are recurring. Marketing, advertising, and maintenance for your SaaS software are some aspects that yield recurring costs. While these are technically not developmental costs, these add up to expenses during the developmental stage. There are also various overhead costs, including accounting and legal costs, that can affect the overall cost of SaaS software development.
Well, even different phases of SaaS software development have contrasting costs associated with them. Again, both technological costs and supplementary ones such as those for hiring developers, the time taken to finish a phase, etc., come into play here.
Here are the primary phases for developing a SaaS software that can be explored with these six phases mentioned below:
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Now coming to the part you’re here for! It has been established that SaaS software development can be quite expensive for service providers. However, there are various considerations that can be made by the SaaS company to reduce the cost.
Here are some methods that can be pivotal to reduce SaaS software development costs:
Introducing aspects of automation can significantly reduce manual effort and errors while also reducing the development cost significantly. Many tests and data migration processes can be automated during the process of development. Automating different aspects of your SaaS software also helps eliminate costs from recurring tasks, which could be managed on a loop through automation.
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The onsite-offshore model is a hybrid product delivery model which functions as a combination of the onsite and offshore models. It’s also commonly called the onshore-offshore model. Onsite/Onshore refers to outsourcing a task within a city/country while Offshore refers to outsourcing abroad.
SaaS development in India offers an advantage with onsite-offsite software development to optimize results and costs depending on which tasks can be managed with or without outsourcing. Balancing your costs using the onshore-offshore model is key to minimize costs for SaaS software development.
The MVP or Minimum Viable Product strategy is another avenue to cut costs and buy yourself more time for building a more advanced platform. MVP refers to building and integrating only those features that you know your current customers will use. Adopting minimal features ensures no wastage on complex development while it can be easily integrated at a later stage when there is a demand for it in the business.
Relevant Read: SaaS MVP development guide for startups
Employing cloud backends or BaaS (Backend-as-a-Service) is a sort of inception with your SaaS to save money. The same concept of using a remote cloud service model with only the need to maintain the frontend helps you save high costs while also helping you focus on making the frontend better for the consumers.
Developing SaaS from scratch in itself is quite an expensive and time-consuming process. Third-party or API integrations can help reduce development time and costs. Contrary to what many believe, using APIs can actually be pretty robust for efficiently scaling your system at a later stage. Thus, it is one option to reduce your SaaS software developmental cost that you must surely consider.
There are two primary options for anyone looking to hire for SaaS software development. You can hire a software consultancy to develop your software or get a freelancer on board to build your application. There are some key differences between the two options.
If you go for a freelancer, you can hire one flexibly for a patch code for your software or hire one on a need basis. Freelancers tend to charge less for independent services and often offer singular services separately. However, when developing a full-fledged SaaS platform having a consultancy or agency to see through the process seems more promising.
While a consultancy tends to charge more for a complete package of services, you have more control and customization options to integrate with your platform. All dependencies within the system can be developed systematically with continued support for any troubleshooting that occurs even after implementation.
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We hope this post gives you the much-needed insight into the different layers of cost that are incurred in the extended process of SaaS software development. Planning the cost aspect of SaaS software development ensures prompt accounting for your business and makes sure you operate within your budget.
A good software development consultancy can help make your process smooth and more streamlined. With the right experts backing you, an optimum strategy for software development can be created to minimize high costs.
Sofyrus is a premium option for your business and developing your software product. Looking for advanced SaaS software development services? Reach out today to begin!