Custom SaaS Development: A Comprehensive Guide for Businesses

Not long ago, our primary data storage sources were floppy disks, DVDs, and CDs. The internet was less widespread than today and was just beginning to kick off. If you wanted to watch a movie or install software, you had to do that via a CD or DVD. These discs were a big part of our lives. They served us so well. 

But things began to change with the advent of the internet. The world became more connected.. Gradually, pen drives and memory cards replaced CDs and DVDs because they were portable and could store much more data.

As people became more comfortable using the internet, they didn’t need these discs or pen drives to copy software setups. This led to a new way of delivering software, Software as a Service, or SaaS.

Businesses turned to custom SaaS solutions for more flexibility, cost savings, and reliability that traditional software delivery methods can’t provide. 

In this blog, we will examine custom SaaS development, consider its benefits and drawbacks, and discuss some critical factors organizations should consider when developing their own custom SaaS applications.

What is Custom SaaS Development?

What comes to mind when you hear the word “bespoke”? You may imagine a suit that fits perfectly but costs quite a bit.

The idea is similar when it comes to software. Bespoke, or custom software as a service, is designed to meet your business’s unique needs..

However, unlike a tailored suit, custom software as a service isn’t just a luxury. For many companies, standing out in the market is essential and plays a significant role in their success.

Custom software is creating software that’s specifically designed for a company and is accessed over the internet.

Benefits of Custom SaaS Development

Considering the variety and affordability of many ready-made options, you might wonder why a company would still choose a custom SaaS development. Though not immediately apparent, the answer is that there are several good reasons for this.

1. Seamless integration with existing software

Custom software is a good choice if you want all your business tools to work well together. Most companies don’t rely on just one software. On average, they use around 254 different apps.

The problem is that many of these ready-made software solutions don’t offer many options for integrating with other tools. You often can’t change the software to fit it into your work processes.

This means you must manually switch between different apps and move data yourself. As you can guess, this can take time and lead to mistakes. However, with custom software, you can integrate it with any software you need. This can automate parts of your business operations and boost your productivity.

For instance, a custom ERP system can connect the software used by different departments, making it easier to manage everything from one place. This can make your business run more efficiently.

2. Long-term cost savings

It might sound surprising, but spending a thousand dollars on custom software can be more affordable in the long run than paying US$10 monthly for a US $60 commercial software.

At first glance, custom SaaS development may seem more expensive compared to buying a ready-made solution, but when you look at the bigger picture, it often turns out to be more cost-effective over time.

Why is this the case? Custom software generally involves a one-time upfront payment, with only a tiny amount needed for maintenance.

On the other hand, monthly fees as you add more users can quickly add up.

Custom software is more like an investment that pays off the longer you stick with it.

3. Having a solution tailored to your needs

Custom SaaS solutions are developed to meet your business needs. Developers can include features and functions that your business requires. Instead of changing how your business operates to fit into pre-made software, the software is tailored to suit your business.

Challenges of Custom SaaS Development

1. Finding the right developers for the project

Building custom software is tough, and finding the right team to tackle these challenges is more complicated. A 2023 survey by Infragistics found that over 37.5% of respondents struggled to find the right talent for their projects, a global issue. The hiring process is time-consuming and expensive, often taking months and involving costs beyond just salaries. 

A bad hire can cost a company around $14,900, and getting new employees fully productive takes time, slowing down projects. Many companies are now partnering with external development teams to find the right talent more efficiently to avoid these challenges.

2. Choosing the right tech stack

Choosing the right tech stack—such as programming languages, libraries, frameworks, and databases—is crucial for success when working on a custom software project. Getting this choice wrong can lead to significant issues, even with a tremendous software-as-a-service idea.

A notable example is the Healthcare.gov website in 2013, which struggled due to an inadequate tech stack. The Java middleware could only handle 1,000 users at a time, causing significant performance problems when the site faced high traffic.

This highlights the importance of selecting a tech stack that fits your project’s needs. Consulting with experienced software developers can help ensure you make the right choice.

3. Managing changing requirements

Project requirements are crucial as they define what needs to be done, the time required, and the cost. Without precise requirements, managing a software project becomes challenging, with 39% of projects failing due to this issue. Frequent changes to requirements, whether due to market shifts or poor planning, can complicate matters further.

To avoid this, agreeing on and documenting requirements in a software requirements specification (SRS) before starting is essential. An SRS clarifies what needs to be done, helping all team members understand their roles and tasks. This reduces confusion and allows for smoother project management.

Key Considerations for Custom SaaS Development

1. Conduct market research and establish your target audience

Market research serves several purposes. First, it helps you understand whether your project has a good chance of succeeding by pointing out the opportunities you might take advantage of and the challenges you might face.

It also gives you helpful information if you’re trying to improve an existing product, mainly when the updates are based on a careful look at data. Market research can also help you understand how the people you want to reach might react to your project. 

There are different ways to approach market research, and the method you choose usually depends on what you’re trying to achieve and the industry you’re in. Generally, market research falls into two main categories: primary and secondary.

Primary research involves gathering new information directly from your target audience, such as your potential customers. This might mean running surveys, conducting interviews, or holding focus groups designed to cover the specific details you’re interested in.

On the other hand, secondary research is about looking at data that’s already out there. This could include industry reports, market statistics, published articles, or sales figures from other companies. Secondary research is beneficial when you want to understand what your competitors are doing and their position in the market.

Since it’s unlikely that everyone will like a product the same way, a well-thought-out market research plan can help you determine which groups of people and which parts of the market are most likely to be interested in or want to use your product.

2. Choose the Right Technology Stack

When working on a project, one of the most important things you can do for your project and your team is to choose the right technologies, programming languages, frameworks, and tools for developing your application.

It’s not an exaggeration to say that every part of software development, from performance to maintenance and even budgeting, relies heavily on your choices about the tech stack. Since building a software application is quite a complex task, it’s worth looking at different aspects of its creation and use when considering optimising your tech stack.

Creating the app is only one part of the whole process. Keeping your product up-to-date, making changes, adding new features, and expanding the project can be challenging if your technologies aren’t well-supported.

Technologies that are widely used usually come with detailed documentation, regular updates, and good tech support from their creators. This makes it easier for developers to work with them. It’s crucial to pick technologies that work well together to add new features and functions quickly and without problems.

3. Focus on User Experience

Using a SaaS app is quite different from using regular software. With regular software, you usually pay a one-time fee and have access to it forever. However, with SaaS apps, the people who make them must get paid regularly because their business model is based on subscriptions.

For instance, think about Netflix. If you’re unhappy with Netflix today, you can easily cancel your subscription and stop using it. Similarly, if a SaaS app has a great design and is easy to use, people will keep paying for it monthly. 

On the other hand, if the design is terrible, users might quickly switch to another app that works better for them. So, how well a SaaS app is designed can make or break it. The SaaS market is very competitive, and users’ expectations keep changing, so staying on top of these expectations is crucial.

What matters more than just success or failure is how usable the SaaS app is. Developers want their apps to be helpful and to make it easier for users to reach their goals. If a SaaS app doesn’t offer a smooth and intuitive experience, it won’t meet users’ needs effectively.

Best Practices for Custom SaaS Development

1. Define what your long-term goals are

Before planning custom software, consider whether it aligns with your company’s long-term goals. Custom SaaS development is a significant investment, so ensuring it offers lasting value, not just a temporary fix, is essential. Start by defining the problem or goal you’re addressing.

Understand the core issue and explore potential solutions. Consider the time frame for development since it typically takes several months.

Also, check if existing software can meet your needs before opting for a custom solution. Careful planning will help ensure your custom software investment is wise and practical.

2. Determine what your budget is

One crucial step before seeking a development team is setting a clear budget, which can be tricky, especially early on. Estimations often go wrong—sometimes by up to 400%, according to Praxent. Costs vary widely based on factors like the complexity of the software, design needs, integration challenges, data migration, and the team’s location.

For instance, adding advanced security or custom design can significantly raise expenses. Additionally, choosing between fixed pricing and time-based billing affects your budget. To stay safe, consider adding a 25% buffer to manage unexpected costs and keep the project on track.

3. Have a detailed software development plan

Having a solid software development plan guides your team through the project. This plan should outline the timeline, highlight milestones and deadlines, and specify what needs to be delivered at each stage. It also prioritises tasks, ensuring that critical features are developed first.

The plan assigns tasks to team members, ensuring everyone knows their role. Additionally, it includes details about the budget, risk management, testing, and quality standards. Without such a plan, the project could quickly go off course, leading to missed deadlines and unmet goals.

How to Choose the Right Custom SaaS Development Company

Here’s a step-by-step guide to choosing the right SaaS development team for your custom software project:

Step 1: Understand Your Project Needs

Before anything else, define your project’s requirements. Identify the expertise, experience, and technology needed to bring your concept to life.

Step 2: Look for Relevant Experience

Search for teams that have experience in your specific industry or project type. For example, if you’re developing a FinTech product, prioritize teams that have worked on FinTech projects before. Their experience will be more valuable than just a solid general reputation.

Step 3: Review Their Portfolio and Case Studies

Examine the team’s portfolio and any available case studies. This will help you understand how they have handled similar projects in the past, how they approach challenges, and whether their experience aligns with your needs.

Step 4: Check Client Reviews

Read reviews about the team, especially on third-party websites like Clutch. Pay attention to both positive and negative feedback. Good reviews are reassuring, but negative reviews can reveal potential issues affecting your project.

Step 5: Evaluate Their Technology Stack

Make sure the team is proficient in the technologies your project requires. Different projects need specific tools and libraries, so the team must be skilled in the right ones.

Step 6: Assess Their Security Practices

Ask about the team’s approach to cybersecurity. Given the increasing number of hacks and breaches, they must have solid security practices. If they have certifications in cybersecurity, that’s a bonus.

Step 7: Understand Their Methodology

Learn about the team’s project management methodology. A suitable methodology ensures the project stays on track and allows regular updates and feedback. This is important for keeping the project aligned with your expectations.

Step 8: Evaluate Communication Protocols

Consider how the team plans to communicate with you throughout the project. Good communication is critical to a smooth collaboration, so ensure effective communication protocols.

Step 9: Consider Their Pricing Model

Look into how the team prices their services. Do they offer flexible pricing options like time and materials? Ensure they are transparent with their costs to avoid any surprises later on.

Step 10: Make Your Decision

After going through these steps, take the time to assess everything. This might seem like a lot of work, but ensuring you choose a custom SaaS development team that meets all your needs and that you feel confident working with is worth it.

Conclusion

Our tips will help you have a smooth experience with custom software as a service development. But this can only happen if you choose the right team to work with from the start.

ScaleupAlly could be that team for you.

We have completed many successful projects, and our team includes over 100 skilled software professionals who know the right tools and technologies to make your project successful.Feel free to reach out if you’re considering working with us. We’d love to chat and see how we can help!