In my earlier discussion, I pointed out how outsourcing can help businesses in achieving cost-efficiency and enhanced productivity. However, in the current business scenario, Software-as-a-Service (SaaS) providers face tough market competition and customers are demanding more than ever before. To tackle these challenges and stay ahead of the competition, outsourcing emerges as a valuable option for these companies.
Software as a Service (SaaS) has been gaining immense popularity as a software delivery model for global consumers. The statistics from BetterCloud indicate that by 2023, 73% of organisations will solely rely on SaaS applications. Therefore, it is vital for these organizations to hire the right people because fast-paced SaaS companies are adding an average of 56% to their workforce every year. Nevertheless, this could be their greatest challenge since there exists a significant shortage of people with the right computer skills. As new digital businesses emerge, the skills gap becomes more evident, and it becomes crucial to onboard employees with the latest knowledge and expertise to tackle novel problems in order to scale up.
In today’s globalized market, outsourcing is being considered by many companies as a feasible option for their business operations. In the United States, there is a noticeable inclination towards outsourcing software development to Latin American countries due to several factors, including their proficiency in the English language and minimal time zone differences. This shift has enabled businesses to communicate with their outsourcing partners in real-time more effectively, providing a significant advantage over conventional outsourcing methods. With the escalating demand for Software as a Service (SaaS), outsourcing will likely become more indispensable. Here are three scenarios where a SaaS company should consider outsourcing:
Boosted and Expedited Growth
Succeeding as a software firm is not an easy feat. One of the significant challenges they face is the need to grow quickly to survive and prosper.
A company’s capacity to expand can be significantly influenced by several external factors such as market share, product uptake, and customer engagement. However, internal factors such as product advancement and cost estimation must also be considered. For instance, a software company that attains only 20% annual growth faces a 92% risk of collapsing soon, whereas for most companies, such growth is deemed as a remarkable success.
High startup expenses and ineffective marketing strategies are among the common reasons behind the lack of growth and progress of software businesses. Nevertheless, the significance of motivating and satisfying employees should not be ignored as it can have a considerable impact on the company’s development. However, recruiting the right skilled employees can be challenging, and it’s crucial to determine whether a full-time hire is necessary to fulfil a job role. Making the wrong decision can turn out to be a costly mistake, and terminating the employee’s employment or compensating them when their services are no longer needed can be a significant expense for a business that has already invested in hiring and training.
Software as a Service (SaaS) businesses often look for local talent to undertake specific tasks. However, once hired, employees are frequently assigned additional duties. As the business progresses and development demands intensify, the eagerness to execute these supplementary responsibilities inevitably wanes, inevitably lowering staff productivity when employee morale is low.