I've previously written about the benefits of outsourcing and how it reduces costs and increases efficiency. For software as a service (SaaS) companies, competition is increasing and companies must find a way to meet market demands. Outsourcing allows them to do this. SaaS is quickly becoming the most popular method of delivering software to customers (…)
I've previously written about the benefits of outsourcing and how it reduces costs and increases efficiency. For software as a service (SaaS) companies, competition is increasing and companies must find a way to meet market demands. Outsourcing allows them to do this.
SaaS is quickly becoming the most popular method of delivering software to customers around the world. According to a report by BetterCloud, 73% of companies say their applications will be SaaS by 2020. And with the fastest-growing SaaS companies growing their teams by an average of 56% each year, hiring the right talent is very important. But it can also be your biggest obstacle. Finding talent is a challenge. There are many statistics that explain the skills gap in technology, and this gap is only growing in emerging technology industries. Growth, however, means finding talent that can deal with new technologies and challenges.
In today's globalized economy, outsourcing is a common consideration for companies. Software outsourcing to Latin America, for example, is becoming very popular for companies in the United States due to the high level of English proficiency and minimal time zone differences. Businesses can work in real time with their outsourcing company, which is an advantage for many companies. As SaaS grows in popularity, outsourcing may, in fact, be a key component to long-term success. Here are three reasons why SaaS companies should consider outsourcing as an option.
1. Rapid and Enhanced Growth
Software companies face particularly challenging barriers to success. One of the most pressing challenges is the rate at which they must grow to prosper.
Company growth depends on a variety of external factors, including market penetration, product adoption and engagement. It also depends on a variety of internal factors such as product development and cost analysis. For most companies, 20% annual growth would certainly be an exciting achievement, but if a software company only grows 20% annually, it has a 92% chance of going bankrupt in just a few years.
Many factors contribute to a software company's failure to evolve quickly, including startup costs and failed marketing campaigns. Another potentially underestimated factor that negatively affects growth is employee motivation and satisfaction. Before that, finding qualified employees is a challenge. For SaaS companies, it can be difficult to determine whether or not a full-time employee is needed for the project. This mistake can be costly. If a company hires and trains an employee only to not need them months later, both the cost of firing them and the cost of keeping them are quite high.
SasS companies often hire local talent to perform certain tasks, but these employees soon find themselves performing other roles that take them away from their core responsibilities. As time passes and pressure for growth and development increases, employees' motivation to complete these peripheral job functions diminishes. When employee motivation worsens, progress also worsens.
