Due to the obvious convenience and security it provides, SaaS has increased in favor among businesses. You don’t need to buy, install, maintain, or update any hardware or software; all you need is an Internet connection.

If you have a concept for a SaaS solution and want to create it for your company to attract investors or, if you already have the finances, you may invest in development. The following step in the process is to create a SaaS Platform. You have the option of hiring an in-house professional team or utilizing an agency, freelancers, or staff augmentation. The important issue is, which path should you take? This article will attempt to provide an answer to this question.

The Cost of Developing a SaaS Solution

The expenses of developing a SaaS solution will vary based on the features you select, billing, which develops the product, and so on. It is preferable to begin by developing an MVP because they are less expensive and serve as a wonderful tool to test the feasibility of your product.

There are other expenses for accounting, legal counsel, and upkeep. The average cost of a SaaS application is roughly $15-$100k, but the cost of a platform may be anywhere from $50-$250k.

Different SaaS pricing models may have a substantial influence on development expenses as well as product popularity. It is critical to adjust your pricing approach to your target audience’s needs. You may estimate the cost of developing a SaaS product based on your pricing.

You have the following options:

Usage-based pricing is charging clients based on how much they utilize a service.

The term “freemium” refers to a free version with limited functionality that may be upgraded for a price dependent on the number of active users.

 Who is going to create my SaaS application?

The success of your SaaS solution is greatly dependent on who develops the software. Here are the alternatives that are most readily available to you.

1: Freelancers 

Freelancing originated as a set of professional skills that allowed individuals to be different enough to be unattached to a particular firm.

Freelancing has evolved throughout time, from individuals or groups working out of their homes delivering specialized services for a brief period to freelancing websites that offer a menu of abilities to pick from.

Here are the advantages and disadvantages of freelancing based on each criterion.


Advantages: Freelancers are frequently simpler to discover and less expensive to hire.

Cons: The lower the income of a freelancer, the worse the quality of his or her work.

The Team Structure’s Flexibility

Advantages: Flexibility in the case of a team’s downsizing or expansion.

Cons: It is hard to track the time spent by the freelancer on fixed-price tasks.

Cons: Maintenance support is difficult for freelancers since the chances of hiring the same developer are limited, and a new developer may need to work extra hours just to get a grasp on the problem.

Software Quality

Pros: Most freelancers rely on the client’s review/feedback to get their next job. They must make every attempt to suit their clients’ demands.

Cons: Developing an ISO-compliant SW for a freelancer might be time-consuming. As a result, quality is confined to the developer’s and tester’s perspectives.

Global Talent Availability

Advantages: Working as a freelancer allows you to hire competent engineers from all around the world.

Cons: It may be difficult to explain your ideas to persons from different cultures and backgrounds.


When just one person is in control of a project, all decisions are made promptly and naturally.

Cons: It is difficult to verify that all resources are on the same page in such instances. Furthermore, the customer is responsible for managing these developers.

 2: In-House Development

Because your internal workforce will be at your fingertips, you will have complete control over the team.

Improved communication – face-to-face engagement with engineers who work directly with you is significantly less time-consuming and responsive than outsourcing.

A better knowledge of the company’s values: As regular workers, in-house developers are better aware of the company’s interests and conditions and are culturally fit.

Because they have well-matched team members, internal teams are usually more involved than external contractors. This is because such a group works on behalf of the company to which they belong.

The disadvantages of an in-house team are as follows:

Additional expenses – Hiring a staff entails additional expenses like perks and benefits, insurance, and training, among other things.

Additional administration – you will be responsible for handling vacation, maternity, and medical leaves.

Space and equipment: For each person hired, you will require more desk space and the appropriate equipment.

Extensive hiring procedure: To build an in-house staff, you must go through a lengthy screening process and teach the newcomers.

 3: Outsourcing 

Enlisting the assistance of outside expertise may provide us with a boatload of advantages.

Increased efficiency – if you have a team of professionals in a given field, you may begin working on a project straight immediately. You save time educating your employees, and the development process is significantly quickened.

Scaling the team up or down is much easier when you work with an external outsourcing team.

Cost savings: By outsourcing, you may save more money. Subcontractors are not compelled to utilize your office or equipment. You hire a workforce and pay them as needed, and you can easily scale up or down your project in accordance with your budget and needs.

Good time-to-market – employing an outsourced team may avoid the extra recruitment and personnel processes that in-house development sometimes implies.

The Drawbacks of Outsourcing Software Development

The bulk of these issues are due to a lack of regular face-to-face connections with subcontractors. There are a few other aspects to consider before deciding to outsource:

Potential communication challenges – interacting with an external team will be done largely via e-mails, instant chatting, or other techniques that lack the power and advantages of face-to-face connection.

Less control: When it comes to team completion and competence testing, you have less control over these concerns when you outsource.

 4: Staff Augmentation

In its most basic form, Staff augmentation is the temporary hire of outside expertise to complement an organization’s competence. It’s a type of outsourcing strategy in which employees are hired to fill gaps on projects aligned with the company’s current aims. This workforce is hired based on the skills necessary and can work with a customer for a short or long time.

Services like this are gaining traction due to the peculiarities of the IT business and the lack of talent. IT staffing services can provide programmers, QA engineers, designers, marketing professionals, and system administrators.


According to a recent McKinsey & Company study, technology industry specialists predict that the software as a service business will grow even faster in the next years. By 2024, the market for SaaS solutions is estimated to be worth about $200 billion.

We’ve shown you how to build a terrific SaaS solution. It is now up to you to expand and develop your product, whether through outsourcing or in-house development.