Benefits of SaaS Startups Hiring Service Agencies

Last year, 47% of venture capital was invested in SaaS (Software as a Service) startups around the world. Less than one-third of these startups deliver a positive return on investment. Building a successful MVP (Minimum Viable Product) is the biggest challenge for SaaS startups.

This is where IT service agencies step in, offering expertise and support to businesses. They help speed up the process while cutting costs and increasing profit with custom SaaS solutions ensuring the project's success.

In this article, we'll examine the benefits of SaaS startups hiring service agencies focusing on outsourcing IT needs. We’ll also include valuable insights from Rob Walling’s book Start Small, Stay Small: A Developer’s Guide to Launching a Startup – a blueprint for launching a self-funded SaaS startup, known as The SaaS Playbook.

What is a service agency?

A service agency provides outsourcing of its specialized services to other businesses. They support companies, startups, or individuals in achieving their goals. Agencies provide support in every field – marketing, law, human resource management, accounting, etc.

IT services, like software development, are the ones SaaS startups outsource the most and have become increasingly popular. This is because IT services such as cloud-based software development require specialized knowledge. Hiring new employees with these skills increases costs and brings a lot of responsibilities and risks. Added stress and legal obligations can be avoided by outsourcing a SaaS service provider.

Why is hiring service agencies important in the SaaS industry?

As Rob Walling states in his book, one of the main roadblocks in the business process for SaaS startups is "believing you have to do everything yourself". He lists 37 tasks you need to complete to turn your idea into a SaaS product. Unfortunately, these tasks combined can take months to complete.

If you do these tasks yourself or hire full-time employees, you are wasting time you could use for growing your business. Hiring agencies and outsourcing IT needs helps SaaS startups scale faster.

For Rob, outsourcing is a skill every entrepreneur in SaaS has to learn. It is also one of the main skills you need to succeed in this industry. You don't have to start big, but you will stay small if you don't outsource business operations. Understanding this is the first step to growth.

Disadvantages of full-time employment for SaaS companies

• Maintaining an in-house team takes time and resources

• There are many legal obligations

• Salaries and bonuses for multiple employees limit the budget

• A limited budget limits the hiring process

• The recruitment process is long and delays the sales process

• Business needs can't be prioritized if you search for the best candidates for months

• Pensions and medical insurance present additional costs

• Paid vacation leaves, sick leaves, and maternity leaves can slow down your company

• Training and onboarding take time

• Nothing can guarantee the success of your team

Why is outsourcing good for SaaS startups?

Hiring service agencies helps SaaS companies speed up their growth. Outsourcing is the secret behind the most successful SaaS companies in the world. For example, at the beginning of its business journey, GitHub outsourced its backend development before building its team.

Some industry names like Slack, Skype, Basecamp, Opera, and Giffy quickly rose to the top because they outsourced their business needs. These larger companies are great examples for startups trying to achieve success with SaaS solutions.

So, the smartest and shortest way to succeed in the SaaS industry is by hiring service agencies and outsourcing software development for your SaaS platform. This helps startups achieve desired results faster without compromising quality. Even if you don't have access to experienced agencies in your country or region, many top agencies are working remotely for their clients. All you need is a stable internet connection and your new SaaS platform is a click away.

Here’s a list of the biggest benefits you’ll get after outsourcing IT services to a specialized agency.

Top 10 benefits of SaaS startups hiring IT service agencies

1. Getting a proven system for scaling your SaaS

The main goal and at the same time the biggest challenge for any SaaS startup is scaling fast. Time is money and the market conditions dictate a fast business growth. Every SaaS company has to keep up from the start if they want to survive in the competitive market.

If you want to succeed in the long run, scalability should be your main priority. This is why hiring an IT service agency can speed up the process.

With access to technical expertise, experience, industry knowledge, and other resources your SaaS startup can deliver results much faster than through the traditional ways of working. Agencies, like brigit.dev, develop custom software so you enter the market with a SaaS solution that attracts the targeted audience. This increases profit and transforms your product from an MVP to a trusted industry name.

The SaaS Playbook is a testament to this. Rob has several profitable businesses behind him because he used outsourcing to scale faster. He was an engineer and still outsourced software development for his SaaS platforms. This proves outsourcing is for everyone and should be a norm in SaaS and not an exception.

2. Launching your SaaS solutions faster

Putting your product out on the market as soon as possible plays a significant role in SaaS. The more you delay this step the more expensive and less profitable your product gets and you lose your competitive advantage. Market demand in the SaaS industry is changing fast; if you don’t act immediately, you fail.

Service agencies support your company by speeding up this process and timely delivery. With custom software development, they help you position yourself better and launch your product at the right time. This can save money and reduce time spent waiting.

Rob gives a great example of this in The SaaS Playbook. He launched his startup one month earlier than planned thanks to outsourcing. By outsourcing part of the development he got his SaaS solution out in 10 working hours instead of 160. Even if the result wasn't as successful as it was, getting his product out on the market was the priority. That way he could confirm its viability with real users.

You can always add new features and improve software but you can't turn a bad idea into a winning one. Outsourcing development may increase maintenance costs a bit but you will earn way more than you spend in the long run.

3. Minimizing risks

Launching a SaaS startup is risky, both for founders and their investors. You are expected to deliver solutions fast with high returns on investment. Most SaaS companies struggle to accomplish these results. This is where service agencies step up.

With access to their skills and previous experience, you can minimize the risk of failure. Custom software development ensures your SaaS platform will meet the needs of your customers.

Some agencies allow pivoting at any stage so your idea doesn’t go to waste if the initial results are bad. This lowers the risk and offers some stability.

Rob also mentions this benefit in a case study in The SaaS Playbook about one of his projects. He says that he was able to make back his initial investment because of the cost savings from outsourcing. This solution not only minimized the risk of failure for his platform but removed it completely.

4. Cost savings

Studies show that 59% of businesses cut costs by outsourcing, while 90% lower the cost of labor this way. These are the main benefits for many SaaS companies. Hiring service agencies isn’t free but discussing upfront costs allows you to plan your expenses better.

However, the costs of the recruitment process, payroll processing, training, pensions, medical insurance, paid vacation days, sick leaves, and maternity leaves for multiple employees add up over time. Not to mention how time-consuming this is. And the worst part is that these expenses can’t ensure that the new employee will deliver results.

Outsourcing agencies present a cost-effective solution, for SaaS companies with a limited budget.

An Internet connection is all you need to find your ideal partner. With the rise of remote work, you don't have to limit yourself to a specific region.

If you want to manage your resources better without compromising the quality of your software outsourcing is the best decision for the future of your SaaS company.

Rob advises all SaaS entrepreneurs to always hire service agencies. He says: "You will pay a little more but you will have more reliability, higher security, and will be able to easily find a replacement when you need one." This is the best cost-effective solution in the long run.

5. Expertise in building SaaS software

Most SaaS startups struggle with the technical side of their products. Lead generation in SaaS depends on the quality of SaaS software. You need experienced developers to deliver your SaaS solutions. This is not always possible because of financial limitations. Also, it isn't fast because of the recruitment process. That is why most businesses rely on outsourcing because it offers access to top talent.

Agencies come with ready-made teams with in-depth knowledge in software development. This way you gain access to the best talent, save time, and cut costs on human resources and HR administration.

Agencies can take your idea and turn it into a functional SaaS solution quickly. Hiring new talent or a whole team with similar skills to do the same takes more time. It also brings additional responsibilities and costs in the recruitment process with fewer benefits in the long run. Rob's book proves this.

When he started one of his SaaS platforms he decided to use outsourcing. He knew that the process he outsourced would "take hundreds of hours of coding just to find out if the concept would fly". Taking such a risk meant losing time and risking a positive ROI. Outsourcing solved his problem and helped his company.

6. Ensuring the quality of the software

Users expect quality solutions. This is why your software or a cloud-based solution needs an attractive interface with a user-friendly experience.

Service agencies have teams with specialized skill sets. They work to ensure positive results for your company.

Looking individually for qualified candidates to do the work takes more time, energy, and resources than outsourcing. With service agencies you get more advantages and ensure the quality of your SaaS solution.

Agencies have the technical expertise and experience to turn your MVP into a market hit. The process is faster and you don't have to compromise quality. This is the foundation of business growth of most successful SaaS companies.

7. Time to focus on business growth

When managing a SaaS company you have to multitask and split your focus on many processes and different aspects. They are usually outside of your niche and difficult to grasp. Custom software development is complicated and hiring a new employee brings additional complications. This is why hiring IT service agencies helps SaaS companies keep their focus on the business and what they do best. They take care of building products that deliver results.

In his book, Rob proves this when he talks about all his projects. Outsourcing secondary tasks allowed him to work on the essential things. This enabled him to create one after the other successful SaaS businesses.

8. Improved efficiency

Hiring an IT service agency gives you and your team more time, focus, and energy to deal with your end of the business. They help you streamline processes and improve business operations. Operational costs are lower and you can manage tasks better. Outsourcing allows you to do all those things that only you as a founder can do, and delegate the rest.

Agencies make sure the solutions you get are ready on time and your employees can focus on what they do best. You can plan and solve problems faster. You can focus on sales, marketing, and finances without worrying about deadlines. This makes you more effective.

Throughout The SaaS Playbook Rob talks about this benefit. He used outsourcing in all his projects to increase the efficiency of his work. Instead of spending hours figuring out how to do the tasks he wasn't familiar with, he outsourced his needs. Then he was able to focus on more important things. This is why his projects brought in huge revenues.

9. Boosting productivity

Finding a reliable partner and organizing your tasks better with service companies can boost the productivity of any SaaS startup. When you see what your finished product will look like and be able to do, it pushes you to do more. This motivates your team and increases productivity while eliminating tedious tasks.

Without the added stress you manage tasks better and employee productivity increases. You can accomplish more and deliver results faster. This increases employee satisfaction and saves time.

In The SaaS Playbook, Rob talks about this. When he first started outsourcing he realized how many tasks he was able to complete while someone else took care of other things. He felt more productive and satisfied with his work and the overall result.

10. Gaining perspective

Every SaaS startup begins with an idea. Most of them find out whether their idea was good or bad only after launching the product and spending tons of money to do it. It doesn’t have to be that way.

To avoid failure and understand whether your idea can work you need advice from someone with experience in the industry.

Service agencies provide you with this perspective. They helped build many successful businesses before yours. Working with them gives you access to valuable industry insights. They can help you determine if the product you are building is even worth it in the first place. This way you can manage your expectations.

Conclusion

In conclusion, service agencies are the future of outsourcing for SaaS businesses. They are easily accessible and offer more advantages than hiring full-time employees or freelancers. With proven experience and expertise, they can speed up growth and help startups launch faster than ever.

You no longer have to be a software developer or a tech expert to launch your own SaaS company. Thanks to IT service agencies, this is accessible to everyone.

You can go from an idea to a product in a few months. Agencies save time and money you can use to improve your business while they take care of things like software updates and style guides.

Outsourcing IT needs helps you and your team focus better on your end of the business. Rob Walling’s book Start Small, Stay Small: A Developer’s Guide to Launching a Startup proves it.

Anything else?

Most IT agencies offer limited services. This is of course valid because software development is very complex. But this doesn’t mean you have to hire five agencies to create one product.

This is where brigit.dev comes in. We are a software engineering and product development agency. Because we understand business, sales, and marketing on top of proven engineering skills we can help you build your SaaS software from scratch. We focus on product-led growth and custom software development.

If you need:

• strong backend and frontend

• scalable SaaS solution

• user-friendly UI

• innovative SaaS software

• intuitive UX

• design based on psychology

• secure software

• AI or blockchain integration with your software

• SaaS solution tailored to your end user

• pivoting at any stage to minimize risk

• maintenance with regular software updates

We can help you!

With proven experience in SaaS development and wide industry knowledge (FinTech, MedTech, EdTech, coaching, etc.) we can develop a custom SaaS solution for you!

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Book a 1 on 1 consultation with one of our experts and learn more about our services!

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