Software Development as a Service What it is and Why You Need it

Software Development as a Service (SDaaS): What it is and why You Need it

Software as a Service (SaaS) has become fundamental to the business world; it’s hard to find successful companies that don’t take advantage of this technology.

SaaS products help businesses redirect financial and human resources away from things like building and managing software applications, IT hardware, and other intensive needs that come with having an in-house team maintain everything.

In other words, Software as a Service can streamline your business operations more affordably than if you were to do everything in-house.

SaaS examples

Companies like Oracle, Adobe, Google, Microsoft, and SAP currently dominate the SaaS market, which reached $258.6 billion in revenue in 2023. These companies, along with a handful of others, are now a staple in day-to-day operations. For instance, many companies rely on the following SaaS products:

  • Google Workspace
  • Microsoft 365
  • Salesforce
  • Photoshop
  • Zoom
  • Zendesk
  • Trello
  • Hubspot
  • Dropbox
  • And more

Without these tools, most tech companies wouldn’t last a day. These aren’t bells and whistles – these tools are now considered basic needs. And it would be impossible for any company to handle all of these needs in-house without going way over budget.

Although some of the most common SaaS applications are tools used for project management, customer support, and daily work needs, an equally important form of SaaS is software development. Software Development as a Service (SDaaS) provides companies with outsourced, flexible software development as needed, saving them from having to keep an in-house software team on payroll.

If your company needs to develop software, whether it’s a custom CRM application for your team or solutions for your clients, SDaaS can help you save time, money, and resources, all while delivering top-quality work.

The benefits of SDaaS:

  • Save money. Without a full-time development team on payroll, you’ll save plenty of money with SDaaS.
  • Collaboration. If you have an in-house team, no matter the size, SDaaS can support your projects with extra manpower.
  • No need to hire a large team. The hiring process alone eats up valuable company resources, like time and money.
  • No need to keep developers on payroll. Sometimes you don’t need development services daily, but you still have to pay your in-house team to keep them on payroll.
  • Someone else manages the IT infrastructure. Whatever tools and resources are needed for the job will be provided and maintained by the third-party team you hire.
  • No need to expand your office. If you have a small office, you won’t have to expand to accommodate an in-house development team.
  • You’ll only manage the work done by the team you hire. Unlike an in-house team, you won’t have to handle employee-related issues. The only thing you’ll be responsible for is managing your projects.

What is Software Development as a Service?

Software Development as a Service is outsourcing your development needs to a third-party team instead of having your in-house team tackle the project. You still oversee the project, but it requires far less resources to complete.

Unless you run a software development company, you likely don’t have a full-time development team. Even if you have a couple of developers, they probably don’t have the ability to take on large projects with complex specifications and deliver the results quickly. That’s where SDaaS can help.

Instead of trying to tackle it in-house or get your IT team to take it on as a side project, you can hire a dedicated development team that will see your project all the way through to the end.

For companies that don’t have an in-house team, this is the only option. However, it’s also ideal for companies with in-house IT and development teams.  

SDaaS can work with your existing in-house team

SDaaS doesn’t have to replace your in-house software development team. In fact, many companies use SDaaS to strengthen their ability to launch applications quickly, securely, and with the desired functionality. There are times when an in-house team is enough, but not always. Sometimes SDaaS is ideal for adding functionality to your existing applications or taking on large projects with a pressing deadline that is beyond your team’s capabilities.

SDaaS isn’t the same as standard outsourcing

Although it can be considered a form of outsourcing, Software Development as a Service is different because it’s based on a long-term relationship rather than just hiring someone to complete one or two tasks. This difference seems small, but it actually increases the quality of development over time. There are several other factors that make SDaaS different:

  • Improvements are quick and scalable
  • Costs are predictable
  • You get maintenance and support
  • Your IT costs are reduced
  • You get system monitoring

Essentially, an SDaaS team is far more dedicated to the success of your projects than the average outsourcing company.

Here are just some of the benefits you can expect when you start using Software Development as a Service:

Benefits of SDaaS

  1. SDaaS Will save you money

The Software Development as a Service model saves you money through providing flexibility, transparency, and scalability. You pay for the specific tasks and work outlined in the contract, but it’s at your pace. If you want to pause the project, you can do that. If you need to work within a set monthly budget, your SDaaS team will match that pace until the project is completed.

Another important factor to consider is the high turnover rate in IT. It’s been said that turnover in the tech industry is the highest of all industries at 13.2%. Chances are, if you find a star developer, they’re not going to stay long unless you’re paying them the salary they’d get at a large corporation.

The average cost to hire one employee is estimated to be at least $4,700, but many employers say it can be three to four times the new hire’s salary. It all depends on how long they stay. If they make it through training, you’ll spend more money that will eventually be wasted if they quit. Unfortunately, this is a common occurrence in the IT world.

It costs money to hire new team members, but it costs even more to lose existing developers, especially in the middle of a project. If someone on your SDaaS team quits, the company will replace them quickly with someone of equal skill and talent.

  1. Your SDaaS team is always reachable

Just like with an in-house team, you’ll be able to connect with all of the developers working on your project so you can give them direction, guidance, and feedback as needed. They’ll still be working directly under you, but the projects they take on will be contracted and they won’t be considered your employees.

  1. SDaaS has more predictable costs

Although you won’t pay a set fee per project, it’s still important to have an idea regarding how much a project will cost. Most SDaaS vendors use the To-Do List Method to plan tasks and provide accurate cost estimates. This is important because nothing can increase a budget faster than an underestimated development project.

Since SDaaS is a long-term relationship rather than a tool for one-off projects, once your budgets are approved, you won’t have to go through long approval cycles each time you need to start a new project.

  1. A strong QA team

SDaaS vendors have dedicated QA teams that will evaluate a project after each step has been completed. They’ll run both manual and automated tests to ensure functionality and security.

  1. You’ll get access to top talent

With SDaaS, you’ll get access to talented developers with the skills required to complete your project.

Not all software developers are equally talented, despite their technical training. Some excel where others fall behind in terms of how they apply their skills to projects. Creating effective applications takes more than just a working knowledge of various programming languages.

If you try to find the best developers for your in-house team, you’ll need to pay more than your competitors and offer better benefits. Even that may not be enough to get your dream team if there isn’t enough local talent.

You could hire remote team members, but that requires taking on more legal responsibilities for out-of-state employees, and running your business will get more complicated.

Instead, it makes more sense to outsource your software development needs to an SDaaS vendor. They’ve already done all the hard work to find and vet top-notch skilled developers and you will be contracting the company’s services rather than hiring employees.

  1. Faster delivery times

To maintain a competitive advantage, it’s crucial to deliver fast. If you’ve ever dabbled in hiring people from sites like Fiverr or Upwork, you’ve probably noticed delivery times can be slow and quality is often poor. These sites may have started out with good intentions, but they attract a large crowd of people looking to make fast money for as little work as possible.

When you work with an SDaaS vendor, they’ll give you that competitive edge by providing you with a dedicated team of developers who aren’t spread thin by other projects. And with full transparency, you’ll be able to monitor their progress to make sure everything stays on track.

  1. Control over your dedicated team

When you use SDaaS, a dedicated team will be assigned to your project, but that doesn’t mean you can’t change the lineup. You can decide who to keep and who you would like replaced based on the progress you see. You may want to add a few extra people to the team or take some away. SDaaS vendors will work with you to ensure your selected team can meet your needs.

Ready to work with as your SDaaS partner?

If you feel like SDaaS may be right for you, get in touch with us so we can discuss how we can meet your needs. Our highly skilled, experienced developers at would love to provide you with enterprise software development services, whether you just need some extra help or you need access to specific expertise. Check out some of our case studies to see the work we’ve done for our clients – yours could be next.

Do you have tight deadlines or highly specific requirements? Our developers are excellent at meeting deadlines and are committed to getting you the results you need to stay competitive in your industry. Reach out to us today – we’d love to hear from you.

Chief Revenue Officer at Software Development Company
Timothy Carter is the Chief Revenue Officer. Tim leads all revenue-generation activities for marketing and software development activities. He has helped to scale sales teams with the right mix of hustle and finesse. Based in Seattle, Washington, Tim enjoys spending time in Hawaii with family and playing disc golf.
Timothy Carter