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Factors that decide the cost to build a SaaS Application
Factors that decide the cost to build a SaaS Application

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Building SaaS applications at an affordable price is the need of the hour for all aspiring start-ups. If you are planning to build a software product with a minimal budget, this article is here to help you with the best insights.

Various factors influence the budget required to build a particular SaaS application with desired features. While project complexity, team, and development stages are a few among the many challenges during cost management, we are here to guide you in understanding the reality during the budgeting process.

| According to Statista, the SaaS market is predicted to reach more than $208 billion by 2023.

The competition is only getting higher, as studies show that more than 17,000 SaaS development companies are serving nearly 60 billion customers worldwide with their best offers. Hence, it is important to be smart when calculating a project's overall cost to lead a successful and profitable business.

Important Factors that Affect the Budget of a SaaS Application

Below are the factors that contribute to the cost estimation before building a complete SaaS application.

Important Factors affecting SaaS App Costs
1. Scope of the Project

The first and foremost factor to consider is the scope of the project you are about to work on. Know whether your application is going to be a platform or a tool, as this affects the functionalities of the product. By being aware of the scope, you can estimate the time required to develop the product, and platforms can also be finalized with conviction.

On one hand, the scope is limited when building tools, but they can manage critical functions. The best example of a SaaS tool is Buffer. On the other hand, the scope for building platforms becomes broader as each function solves different issues. The scope of an application is a major factor that determines the time, cost, and effort required to build a product.

2. Platform

Finalizing the platform on which the end product is going to run can also help in finding the cost. For instance, if you are building a product that is going to have end-users or clients who predominantly use laptops or desktops, you might have to come up with a web application. In contrast, if your end-users prefer to use a mobile application, then it is best to satisfy them with a product that is easy to operate on a smartphone.

Though the core idea or solution remains the same in both cases of building a web app or a mobile app, the UI/UX designs and other requirements change a bit, and this can affect the cost of building a SaaS application.

3. Feature Requirements

The core feature requirements in an application have a major impact on the budget when building a SaaS product. Each element built inside an application comes with its complexity, which reflects in the time taken and money spent on the project. Moreover, when the initial versions of the app come back with reviews from customers' validation, there can be several features needed to make the app satisfactory.

The total number of features and the types of features are also important to estimate a budget. The common features found in a SaaS application include security, communication, analytical tools, and billing. When working on special projects, the features expected from the client can be more, and the cost will differ according to their needs.

4. API Integration

API integration is a critical component of SaaS application development, allowing applications to communicate and share data with other software systems. Identifying the API that you need for your SaaS application will help you know what functionalities and tools have to be created with the API, and this can provide you with an understanding of the associated expenses.

Once your application's needs are sorted, you can work with the API provider to develop the integration, either by writing custom code or using pre-built integration tools. This clarity of resources and requirements is a great bonus when it comes to fixing costs for SaaS application development.

5. Resources     

You or your enterprise has three options when it comes to choosing the right team to build a SaaS application. Firstly, you can hire and use an in-house development team that can deliver good performance. Secondly, you can choose a SaaS development company that will work as a partner towards your goals. The third option is to hire a team of freelancers who will work together to develop the product.

All three ways have a significant role in determining the cost of SaaS app development for obvious reasons. Having an in-house team is always advantageous as they would easily understand the requirements and deliver quality outputs. Though hiring freelancers is the cheapest option you have, you should be prepared to compromise on the quality of the end product. With respect to outsourcing a partner company, it depends on your ability to choose a flexible team that can build secure applications at an affordable rate.

6. Expenses after the App Release

It would be a complete miscalculation if you think there will be no expenses once you launch the final version of your SaaS application. You should regularly update your application with security features and other tools that are required according to the trends.

Apart from this, there are several overhead costs such as licensing, subscriptions, support, and other updates that will require a separate amount for the overall success of the SaaS application.

How much does it actually cost?

Having mentioned the common factors that affect the cost of building a SaaS application, we would like you to know the approximate budget required to build an application with certain features. If you are new to developing a SaaS application and inspired by top successful applications, then the following information will be very helpful.

Actual costs of SaaS App
Conclusion

Every SaaS application development process is unique, and you might have to face a different set of challenges concerning the app you build. Likewise, the cost varies according to the project's magnitude and complexity. Though it is tough to make a precise calculation to determine the cost of SaaS development, it is still possible to arrive at a number that will be profitable. By considering the factors mentioned in this article, you can predict the costs better and make the development process easier with the right SaaS development company that will bring you success.


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