What is Software Development as a Service (SDaaS) and Why It Matters

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What is Software Development as a Service (SDaaS) and Why It Matters

9 out of 10 Fortune 500 companies hold multiyear outsourcing contracts to cover key business functions. Software is one of these major areas, especially as companies seek to achieve better digital products and operational efficiencies.

Software Development as a Service (SDaaS) is a scalable, flexible alternative to traditional models. This service provides subscription-based software development on an ongoing basis. It’s ideal for quickly adapting to dynamic market demands, while also savings on costs. With SDaaS, you’re in charge of what your developers work on and for how many hours per month.

Let’s go behind-the-scenes of SDaaS to analyze its benefits, processes, best use cases and more. We’ll also highlight how TECLA connects top brands with SDaaS talent to optimize outcomes and meet the evolving requirements of modern businesses.

What Is Software Development as a Service (SDaaS)?

Software Development as a Service (SDaaS) is a cost-effective outsourcing model that provides end-to-end development services on a subscription basis.

Instead of a one-off project, SDaaS gives you access to outsourced software development on-demand, typically for a set monthly price based on developer hours. As an ongoing contract, you can modify the number of developer hours, retaining full control of costs. This makes it easy to predict your software budget and scale the project up or down as needed.

SDaaS is right for businesses that want to avoid hefty upfront hiring and recruitment costs, as well as get 100% flexibility into their development scope. It’s especially useful for large-scale, complex or multi-phase software where ongoing manpower is ideal, such as:

  • Businesses undertaking digital transformation projects
  • SaaS companies who need high-quality support
  • Startups or SMEs with limited budgets

Benefits of Software Development as a Service for Modern Businesses

Today’s digital landscape tends to be fast-moving, complex and costly for brands. That’s where Software Development as a Service can unlock key benefits to keep your budget in check, while still building and maintaining software critical to your business. Overall, SDaaS benefits include the following:

Cost Efficiency

Hiring in-house can be a significant investment, including recruitment, benefits packages, workstations and more. (Not to mention turnover costs can be as high as $30,000 for a tech role!) SDaaS eliminates these extra budget categories altogether.

Additionally, when you choose Latin American professionals for SDaaS, you’ll pay up to 50% less for competitive regional salaries. This removes the barrier of a large initial investment, particularly for cash-limited businesses such as startups.

Scalability

With an open monthly contract, you have full flexibility to modify the number of developer hours up or down. In this way, SDaaS supports scalable development solutions compared to traditional models. You can even add new specialists as your technology requirements evolve with minimal funding.  

Access to Expertise

Specialized software expertise is another main advantage of SDaaS. It lets you look beyond borders at global software talent to access more experts and specialties. This is especially true for niche technologies that are in high demand, such as AI, IoT and cloud computing.

Faster Time-to-Market

SDaaS speeds up your development timeline with ready-to-deploy teams. These professionals use well-established practices and relationships to move quickly, achieving leading time-to-market solutions. What's more, their exposure to a wide range of projects and industries means that they’re skilled at rapidly understanding your specific business needs.

Focus on Core Business

SDaaS hands off your software to outside experts, so your in-house teams aren’t stretched too thin. You can focus on your core business, while your SDaaS professionals take care of your ongoing software project. In this way, you can set up flexible development teams that are 100% dedicated to your software success.

How It Works: SDaaS Process Overview

Before you get started with Software Development as a Service, learn how the typical SDaaS process works. Here’s what you can expect as you set up workflows with TECLA.

1. Initial Consultation

First things first: discuss your software vision with us. During the initial consultation, we’ll clarify your goals, project scope, budget and teaming logistics. If you’re happy with the direction, we’ll kick off a search for the best SDaaS experts as a next step.

2. Team Allocation

Next, we’ll connect you with the specialized developers you need. We’ll take into account your tech stack, company culture, development timeline and more. From here, we’ll propose top-tier software professionals who check all your boxes. Once hired, we’ll also support the onboarding process, so your SDaaS team is well-aligned from first contact.

3. Development & Iteration

As an ongoing service, SDaaS relies on strong continuous development processes. We leverage agile software development practices, such as daily stand-ups, milestone setting, learning mindsets, feedback loops and more.

Overall, we’re keen to establish top communication that’s conducive to iterative cycles and aim to stay transparent though regular progress reports. All our SDaaS experts are well-versed in these leading agile development processes to offer truly premier collaboration.

4. Delivery & Support

Our SDaaS professionals are highly motivated to deliver leading software at all phases of development. Our experts use quality deployment practices, including QA testing and more, to ensure first-rate results. They’ll also provide ongoing software support post-launch and will help plan and build future phases of development.

Key Industries Benefiting from SDaaS

(Source: Statista)

Software Development as a Service is advantageous for any industries that need to ramp up software quickly and under limited resources, without sacrificing caliber and compliance. SDaaS empowers these values by providing subscription-based software development with world-class experts.

Some best use cases for SDaaS include building software for:  

  • AI: Chatbots, process automation, predictive analytics, product personalization, etc.
  • Fintech: Banking apps, fraud detection, digital wallets, crowdfunding platforms, Insurtech, portfolio management, etc.
  • Marketing: CRM platforms, personalized campaigns, behavior analytics, product opportunities, customer leads, content marketing, SEO solutions, etc.
  • ERP: Supply chain automation, financial management, resource planning, ongoing reporting, project management, predictive maintenance, etc.
  • Ecommerce: Online stores, inventory management, payment platforms, product recommendations, purchase analytics, etc.
  • HR: Smart recruitment, payroll processing, employee self-service, employee performance tracking, employee analytics, document management, etc.
  • Healthcare: EHRs, telemedicine apps, auto-refill prescriptions, appointment booking, medical billing, medical imaging, health tracking apps, mHealth, etc.

At TECLA, our SDaaS specialists have a full range of industry experience. In particular, our recruited developers have demonstrated exceptional outcomes for healthtech companies, such as Scene, Limber and Wesper.

Why TECLA Is the Ideal Partner for SDaaS Talent

TECLA has a decade of experience connecting top brands to elite tech professionals in Latin America. We’re especially savvy in tailoring talent solutions for long-term roles, such as SDaaS projects. Here’s what makes TECLA stand out as a SDaaS talent partner.

  • Specialized software expertise: We’ve cultivated an impressive pool of SDaaS experts. What’s more, we pre-vet all developers for technical and soft skill excellence.
  • Cost-effectiveness: The SDaaS is model is good for your budget, as you’ll have predictable monthly costs. At the same time, our LatAm-based experts will reduce salary rates by up to half compared to the U.S.
  • Cultural fit: Ongoing SDaaS requires special care towards business alignment. Our experts are seasoned in U.S. workplace practices and ready to integrate with your teams.
  • Strong communication: Our global software talent is fully bilingual and practiced at communicating seamlessly across borders. In addition, remote teaming is their first language, allowing for effective continuous development cycles.
  • Time zone compatibility: Based in Latin America, our SDaaS talent has overlapping workday hours with the U.S. Our specialists are well-positioned to establish real-time collaboration with your teams.
  • Rapid time-to-fill: We’re proud to ramp up your SDaaS needs as quickly as possible. Our average 7 days to hire means you’ll fill open roles rapidly and save on recruitment overall.

Leverage SDaaS Benefits With TECLA

SDaaS is an outstanding option to enjoy subscription-based software development. This model is powerful for accessing scalable, cost-effective software solutions on your own terms. Whether you’re a SaaS company, an SME or just need ongoing support, SDaaS may be the ideal way to handle your software requirements.

Supercharge your SDaaS teams with talent from TECLA. We have a top-tier pool of 50,000+ developers ready to meet your ambitious software objectives. Choose us to access SDaaS expertise on demand at half the cost of U.S. talent. Reach out to our nearshore talent specialists today!

What is Software Development as a Service (SDaaS)?
Software Development as a Service (SDaaS) is when you hire experts to handle your end-to-end development needs as an ongoing monthly subscription. In this way, you can make continual progress with your project while also keeping costs low.
How does SDaaS differ from traditional software development?
SDaaS organizes development as an ongoing service that you can scale up or down according to your priorities. It’s especially useful for receiving continuous software support or expanding into new phases of your software (such as during digital transformation). In contrast, traditional software development is usually a one-off project that ends at launch.
What are the benefits of using SDaaS?
SDaaS benefits are countless, starting with ongoing access to world-class expertise. This model is also incredibly cost-effective, as you have a subscription contract that sets the price for a certain number of developer hours. Overall, you’ll retain full control of your software budget, allowing you to scale up/down. In turn, you can speed up time-to-market and boost quality with dedicated specialists.
Which businesses should consider SDaaS?
Any business can benefit from SDaaS, though it’s most impactful for large-scale projects or ongoing software support. For example, it’s in high demand for companies undergoing digital transformation, which is typically completed in multiyear stages. SDaaS is also right for startups, and SMEs that are running on limited resources and want to keep costs low.
How can TECLA help with SDaaS projects?
TECLA is your go-to partner to connect with technology specialists in Latin America. We’ll handle recruiting and onboarding the best SDaaS experts for your business, so you can establish a winning team for your ongoing needs.
Gino Ferrand
By 
Gino Ferrand
Gino Ferrand
Gino is an expert in global recruitment having spent the last 10 years leading TECLA and helping world-class tech companies in the U.S. hire top talent in Latin America.
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