Exploring BPO Solutions for SaaS Product Development

The business process outsourcing (BPO) industry has evolved alongside technology and now extends beyond administrative tasks. Specialized service providers leverage operational best practices, certified expertise, and advanced technology, such as cloud computing, to offer a broad spectrum of BPO solutions for software as a service (SaaS) development needs.

Software developers and tech firms can significantly benefit from outsourcing, as it reduces SaaS development costs, augments technical expertise, and delivers back-office support.

This article examines the various BPO solutions for every stage of SaaS software development.

How BPO firms help accelerate SaaS development

As SaaS solutions become more desirable, companies will turn to outsourcing companies or outsourced developers to manage costs. BPO firms, in particular, offer many key advantages while reducing SaaS development costs.

To understand what BPO is in SaaS product development, it is vital to consider the services outsourcing companies provide and how these fit into SaaS projects.

BPO companies have readily available teams of software engineers to develop custom SaaS solutions. They also employ user experience (UX) design and cloud computing experts who lend expertise to projects and offer solutions secondary to SaaS software development teams.

BPO firms also provide marketing strategies, customer support, and administrative support as part of their services. This well-rounded approach to outsourcing allows SaaS developers to focus on creating high-quality SaaS solutions for users.

However, outsourcing SaaS development when your ends and means are misaligned has drawbacks. The key to speeding up SaaS development through outsourcing lies in effectively differentiating between essential and unnecessary third-party services.

Maximizing the benefits of BPO SaaS development

Although outsourcing companies significantly improve efficiency and profitability in many ways, they also leave room for mistakes. The tools, skills, and methods each one uses have a direct effect on service quality. In addition, culture and communication can complicate the relationship.

Weigh the pros and cons below before integrating an outsourcing team into your process.

Pros of outsourcing SaaS development

Among the key benefits of BPO for SaaS development are faster turnarounds, lower costs, and fewer roadblocks. BPO companies have readily available and customizable teams to fit every business need possible, making the strategy more flexible and reliable than creating an in-house team.

Let’s look at the potential benefits in more detail:

• BPO firms provide access to experts in various fields, including SaaS product development, digital marketing, and customer support. This diverse talent pool gives SaaS developers and companies plenty of valuable options to fill or improve their teams as necessary.
• Hiring a team of outsourcing developers costs significantly less than hiring a team of in-house software engineers. The average annual salary of a software developer, depending on experience and abilities, is $94,832. Meanwhile, BPO firms offer flexible hourly or per-project rates.
• BPO companies already incorporate cloud computing into their services, helping clients refresh their information technology (IT) infrastructure. That means outsourced developers work in environments full of SaaS applications, giving them a nuanced overview of the current SaaS market.

Cons of outsourcing SaaS development

The many upsides to outsourcing SaaS development come with their drawbacks, meaning the choice to hire outsourcing companies is not always black and white. Learning to balance the pros and cons is essential to maximizing the benefits of BPO solutions for SaaS development.

Some of outsourcing’s major drawbacks include:

• Aligning perfectly with client needs is what directly hired contractors and dedicated teams are for. To better match client requirements, BPO firms undergo extensive scouting if the required skill sets are unavailable in their workforce. However, prolonged recruitment periods significantly hinder the software development process.
• Lower labor costs in offshore or nearshore locations are a major reason outsourced developers are often better than in-house teams. However, dispersed working arrangements expose the project to potential communication issues due to language, culture, or time zone differences.
• Companies are racing to upgrade their IT infrastructures, with Gartner projecting that 70% of workloads will run in the cloud by 2028. Demand for outsourced developers is likely to rise, too, so companies looking to outsource SaaS projects have to compete for priority.

Considerations when hiring BPO providers for SaaS development

Besides the pros and cons mentioned above, multiple other factors affect the effectiveness and efficiency of BPO solutions in SaaS software development. For example, excellent UX design is a separate but related field that is not part of the typical SaaS developer’s skill set.

Finding the right BPO partner enables SaaS developers and companies to focus on the intended purpose and benefits of SaaS products for their users. 

Below are some factors BPO clients must list and consider when researching different service providers and options. These affect SaaS development costs, product quality, and customer experience (CX).

Expertise and project requirements

Software developers’ specializations and weaknesses depend on their preferences and proficiency in different programming languages. Given the breadth of software engineering specializations, their experience and discipline also affect their ability as SaaS developers.

For instance, cloud-based applications such as Slack have features written in C++, JavaScript, and TypeScript, and they employ other languages, objects, and libraries. Thus, to create similar software, consider hiring diverse third-party developers to leverage as many skills and specialties as possible.

The table below shows a quick rundown of common programming languages third-party software engineer should know and their corresponding uses within SaaS software development projects.

Intellectual property (IP) protection

Ensure all parties fully understand IP ownership when hiring outsourcing companies or developers for any project. Generally, whoever produces the work also holds the IP for that work. However, this changes based on the BPO company and the client’s working relationship.

On the most basic level (i.e., no other IP, copyrights, or patents involved), either of these apply:

1. If the software is not the object of the contract between the BPO partner and the client (i.e., the contract was not about building the software), then the IP belongs to the BPO firm.
2. If the goal of outsourcing is SaaS software development (i.e., the contract is specifically for developing a SaaS product), the client company retains IP ownership of the software.

Other components of the final product that could complicate the issue of IP ownership include:

• Use of open source software (OSS) with copyright restrictions
• Contractual agreement between the BPO partner and the clients
• Proprietary elements, including source code, user interface (UI) and UX design, business process, etc.

You must find a BPO partner you can trust to uphold and protect your IP because this affects your ability to use, reproduce, distribute, license, or adapt the software. A good partner is familiar with IP laws and willing to help protect clients’ IP against internal and external threats.

SaaS development costs

SaaS development costs vary depending on factors such as developer experience and specialization, making it hard to pin down a healthy estimate. The average cost of developing SaaS products is $50,000 to $300,000, with BPO firms charging more than freelancers.

However, because cost is contingent on required services, even outsourcing companies can be cost-effective in the long run. Moreover, BPO companies are self-sufficient and operate with little to no supervision. SaaS projects also move faster under agencies, leading to earlier launches.

Adding to BPO flexibility is the option to select locations with pricing that best meets business needs, with offshore outsourcing companies offering the best cost relative to speed and quality.  

Confidentiality and data protection

Working with outsourcing developers requires sharing or providing access to protected data to create high-quality SaaS solutions. Proprietary algorithms, business processes, and data models are examples of components integral to designing custom SaaS products for clients.

Therefore, it is vital to arrange a non-disclosure agreement (NDA) for every outsourcing engagement. Limiting contact points and channels with the BPO partner is another way to protect data assets and secure company IP against potential theft and leakages.

Discussing information security management systems (ISMS) and practices with a BPO service provider is among the more pragmatic approaches to assessing risk. Confirming a company’s data protection strategy and certifications is another way to gauge its trustworthiness.

Choosing BPO companies that adopt security standards applicable to your industry is often the most practical. However, global standards such as the following also create a heightened sense of trust:

• ISO/IEC 27001
• General Data Protection Regulation (GDPR)
• Cybersecurity Maturity Model Certification (CMMC)

Third-party integration compatibility

SaaS products have inherent value and utility, but their ability to integrate with other applications contributes to their overall usefulness to users and clients. For instance, Google Chrome allows users to connect to other apps, products, and features as extensions through its web store.

One essential competency to look for in third-party SaaS developers and software engineers is their ability to facilitate application integrations. These applications include:

• File management programs such as Dropbox, Google Drive, Notion, OneDrive, and Zoho
• Marketing and design tools such as Adobe, Canva, Figma, Hootsuite, and YouTube
• Communication apps such as Discord, Google Meets, Teams, Slack, and Zoom
• Sales software such as Google Forms, HubSpot, Salesforce, Vitally, and ZenDesk
• Productivity tools such as Asana, Calamari, Grammarly, Trello, and Workplace

Legal and regulatory compliance

Besides data protection policies, clients must review other legal considerations in BPO when choosing a partner. These affect the quality and efficiency of the outsourcing service and the integrity and authenticity of the provider’s relationship with your business.

Partnering with a legally compliant BPO provider significantly affects the client company’s ethics and public perception. Some important considerations include the following:

• Ensure potential BPO partners comply with labor laws and standards to avoid misalignment with the business’s or consumer’s values.
• Review quality control standards and practices as they indicate the BPO firm’s dedication to meeting client demands.
• Understand a BPO provider’s business continuity and disaster recovery plans. These plans are vital to ensuring that interruptions or emergencies do not have a lasting impact on the software.
• Establish termination clauses to mitigate issues when the partnership fails. They also provide both parties with acceptable exit strategies to avoid potential lawsuits.
• Consider the difference in local laws between the outsourcing companies’ and the clients’ countries. This step is essential to determining which jurisdiction is preferable to both parties.

Response to evolving SaaS trends

As SaaS becomes increasingly integral to business operations and daily life, new trends and technologies will shape the SaaS market in the coming years. When choosing a BPO partner, assessing their awareness and readiness to meet evolving demands is critical.

To illustrate the importance of adaptability, let’s look at Skype. Despite launching eight years earlier than Zoom, Skype failed to achieve the same level of success due to insufficient response. In 2020, Zoom rapidly overtook Skyper due to its overall better usability, functionality, and CX.

Regardless of whether SaaS developers create products for internal use or sale on the market, staying updated on recent trends is necessary to produce high-quality products with good value.

The bottom line

Understanding what outsourcing companies offer and how best to implement them into SaaS development helps businesses make smarter and better budget choices. Let’s connect and discuss whether BPO is the right solution for your long- and short-term SaaS development goals.