SDaaS is a novel IT outsourcing approach you should consider.

A growing pile of unplanned changes and unforeseen pitfalls multiplied by unrealistic deadlines that quietly eat up your budget. Yes, software development projects are no piece of cake. It doesn’t take much to blow the development process off the course. And it doesn’t even matter whether you outsource or develop the product in-house—these challenges don’t seem to discriminate. Or do they?

The Custom Software Development as a Service Subscription model will make you immune to most development hardships. But how do you… ”subscribe” to IT services? Find the answer to this and other questions below.

Software development as a subscription model. What?

The SDaaS model is when you offer software development services on a subscription basis.

Within the Custom Software Development as a Service (SDaaS) Subscription model, a software development vendor offers services on a subscription basis.

For example, if you don’t have the necessary expertise to build an app for your e-commerce business in-house, there’s no need to make any hires yourself. A SDaaS vendor will provide you with a project manager, a business analyst, software engineers, a QA expert, or whatever expertise you need.

They’ll work on your project full-time to conceptualize the solution based on your needs, implement it, and make all the necessary updates post-release. You don’t need to assemble a team, pick technologies, or bother with making unexpected hires in the middle of the project. A SDaaS vendor will take care of everything. A fixed monthly fee is all it takes.

And ideally, this monthly fee is not just made up. It’s a perfect ratio of price to value. No bloated teams, paid idle times, or overtimes—using the SDaaS model means you pay only for the result.

Now that you know what’s behind the SDaaS concept, let’s take a closer look at its main benefits.

The benefits of the Software Development as a Service Subscription model

Predictable expenses, result-based pricing, and guaranteed post-release support are the main benefits of a Software Development as a Service Subscription model.

SDaaS brings together the merits of a dedicated team and the predictability of the fixed-price approach. You know exactly how much you’ll need for your project every month. It’s very similar to paying a monthly salary to your employees.

At the same time, the SDaaS model is way better than in-house development. It promises the freedom and flexibility of an outsourcing setup. And this is just the cherry on top. Here are more advantages of SDaaS.

Cost-efficiency

When running an in-house team, there’s no guarantee that your employees produce maximum results for the money you pay them. Especially if they have little to no experience with similar projects. They might flip-flop between different technologies in search of the best fit. Or they might be new to certain tools, frameworks, or languages needed for your project and spend extra time learning. And that’s to say nothing about superfluous roles in your team.

With a reliable SDaaS provider, your monthly subscription will cover only the functions needed for your project and hours dedicated to its implementation—nothing else. What’s more, you will always know what you get at the end of each month. SDaaS is predictability at all levels.

No hiring

On average, it takes about 66 days to hire one (!) tech employee, and this figure doesn’t cover onboarding. Given that you’ll need about 4.5 months to build a new software product, assembling a development team from scratch on your own is a pure waste of resources, especially if you don’t have experts in-house who can screen technical candidates.

Based on your requirements, a SDaaS contractor will instantly provide you with the needed experts who can get down to work straight away. Most likely, these people are used to working together, so you won’t have to wait until they get accustomed to each other and create an effective work routine. On top of that, you can easily scale your team up or down even when your project is in full swing.

Access to global talent

Outsourcing in all its forms is a true portal to the wealth of global expertise. It gives you a chance to find the world’s top talent wherever you are. Along with the opportunity to lower the costs and implement a top-notch product, you’ll be able to reach out to the otherwise inaccessible global talent.

Case in point, Alibaba turned to outsourcing, facing a lack of the needed talent in China. The company wanted to localize its website for the English-speaking audience and compete with giants like eBay despite the internet restrictions in China. Thanks to an outsourcing vendor from the US, Alibaba is now a household name.

Cost reduction

Deloitte’s global survey revealed that cost reduction is the primary motivation for companies to outsource software development. Why? First, with in-house implementation, you will have to invest in all the hardware and software necessary for your project—and most likely, at some point, you’ll find yourself spending on things that are seldom (if ever) used. With SDaaS, it’s all on your vendor.

Second, SDaaS, just as other outsourcing models, allows you to hire the most affordable talent. Let’s assume you operate in the US, where middle software engineers make $88,725 a year. Within the SDaaS setup, you can hire, say, Ukrainian developers with the same level of expertise, which will cost you considerably less—$30,000 annually. As a result, you’ll reduce your expenses by 2.9 times without compromising quality.

Faster time-to-market

With SDaaS, you don’t need to hire the missing talent on your own—your provider will urgently supply you with the necessary expertise with no need for onboarding at any project stage. This model also safeguards you against veering between different technologies and settling on the wrong one. Finally, with a reliable SDaaS vendor, you may rest assured that every single hour your dedicated team spends on your project takes you closer to release. So yes, SDaaS accelerates your time to market.

When you should use Software Development as a Service Subscription model

The lack of tech talent is a good reason to consider SDaaS.

Despite all its advantages, SDaaS is no panacea and doesn’t cover all the cases. Here’s when we recommend using this model instead of going for other outsourcing approaches or building the product in-house:

  • You are short on budget. In most cases, SDaaS, as well as other outsourcing approaches, will cost you less than in-house development for a variety of reasons.
  • You don’t have the needed talent in your area. SDaaS gives you access to expertise overseas.
  • You don’t have the available talent in-house. If you need only one or two employees, it probably makes sense to hire them on your own, especially, if you need them for a long time. But when it comes to a full-fledged team, it might be best to “subscribe” to one as part of the SDaaS package.
  • You need a guarantee on your spending. Most often, you need to know exactly how much you’ll spend over the following months. That’s where SDaaS comes in handy.
  • You have a standard tech project. Most software projects are similar in terms of roles and implementation time. The SDaaS package covers a pre-defined set of functions needed for a basic project. If your requirements go beyond this scope, consider outsourcing approaches that offer more flexibility.
  • You need someone to support your project post-release. Many software development vendors offer implementation only, shifting support and maintenance on the client’s shoulders. Within the SDaaS setup, your dedicated team will keep your product up and running, adjusting it to the market needs.

Based on our experience, the subscription model covers the needs of most projects. But before you take the leap into the SDaaS market searching for a suitable vendor, make sure you actually need to develop anything at all.

Service-based or product-based software provider: When to choose what

If the available software is not enough, custom development is your way out.

According to research by GoodFirms, a custom software solution will cost you up to $120,000. This price stings, especially if you’re just getting started. Luckily, in some cases, you don’t need to look for a service-based development partner who can build a custom solution for you.

Alternatively, you can find a product-based software provider with a ready-made solution. Specifically, if you need a solution for internal use, and there’s a suitable one available on the market. You don’t want to develop a video conferencing tool from scratch if Zoom meets all your needs. But in case there are no relevant offerings, custom development is your way out.

Acropolium’s approach

Acropolium is a reliable SDaaS partner.

You’ve probably come across Acropolium on the Clutch top listings. With an 18-year background, we work miracles with AI, big data, cloud computing, blockchain, chatbots, and other in-demand technologies. We take pride in hundreds of successful projects across industries, from retail to logistics. All in all, we can handle anything a tech project typically entails.

Of course, we support different outsourcing models, including SDaaS. Our monthly package covers audit, consulting, development, testing, support, and modernization—the functions any full-fledged product development requires. Here’s how this offering stands out from the competition:

  • We do not overcharge. Every cent of the monthly fee counts.
  • We guarantee the quality of the delivered product. Each completed task undergoes a three-phase review when a first-class engineer reviews any changes. We use only up-to-date libraries and frameworks.
  • Your needs are our priority. Though our SDaaS package is standard, the end product always addresses individual client needs. At the outset, we’ll thoroughly audit your case and analyze your requirements. Then we’ll guide you on any possible risks and how to mitigate them and brainstorm an informed solution.
  • You choose your level of control. With Acropolium, you can track your project status 24/7 and reach out to your dedicated SDaaS team whenever you need to. You’ll also get monthly activity reports. At the same time, you don’t have to actively participate in the project if you don’t want to—you can focus on your core tasks while we handle the tech side.
  • We cherish long-term relationships. Many vendors guarantee product maintenance and modernization for only 3-6 months after release. Rest assured here, we’ll be with you as long as you need. About 60% of our clients have been cooperating with us for over a decade.

At the same time, with Acropolium, you are not locked in our subscription. We are flexible. So if you need expertise not covered by our package, we’ll set up our cooperation in a way that works for you.

Final thoughts

The Software Development as a Service model offers advantages that other IT outsourcing approaches do not. Among the most attractive ones are predictable ongoing costs, result-based pricing, and guaranteed product maintenance and enhancement post-release.

But let’s not forget that you still depend on a third-party vendor. If you choose an incompetent one, you risk flushing your budget on a low-quality product. That’s why it’s paramount to stick to a reliable partner. Acropolium, with almost two decades of successful projects under its belt, is a case in point. Whether you want us to consult on your case or bring your idea to life, just contact us.

FAQ

What’s the difference between outsourcing and the SDaaS model?

Basically, SDaaS is another IT outsourcing model. But instead of paying a fixed price for the entire project or an hourly (or monthly) rate to every development team member, you pay a flat fee every month for the entire package of functions needed for your project. As a result, you know in advance how much money you’ll need and what you get in return. It’s as easy as paying for your Netflix subscription.

How do you use the Software Development as a Service model?

Easily. All you need is to find a SDaaS vendor with an offering that fits your needs and budget. Once done, you pay the monthly fee and receive services in return.

Why is SDaaS so popular in 2022?

SDaaS covers most shortcomings of other IT outsourcing approaches. For example, while the dedicated team and time-and-materials models don’t give you much insight into your future spending, SDaaS has a fixed monthly fee. The fixed-price model also gives you a high level of predictability, but it’s suited for one-off projects with limited control from the client’s side. Also, SDaaS guarantees that your vendor will support your project as long as you need it. Finally, a reliable SDaaS vendor will spare you from paying extra—it’s a truly result-based setup.

How do you evaluate the quality standards of a company providing a SDaaS solution?

Before signing any contracts, we strongly recommend you take a close look at your potential partner’s website, portfolio, and client reviews on reputable platforms, such as Clutch or GoodFirms. You can also talk to some of their clients personally and ask for their feedback. A good idea is to test the waters with a small project like an MVP before proceeding with something larger.