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3 min read

Why 40% of SaaS Companies Are Doubling Down on Outsourcing for Software Development

Software Development 3 min read
3,124
Why 40% of SaaS Companies Are Doubling Down on Outsourcing for Software Development
[Source: Designli]
Article by Ilze-Mari GründlingIlze-Mari Gründling
Published Feb 27 2025
|
Updated May 01 2025
Share

While some companies are bringing software development back in-house, 40% of Deloitte survey respondents still plan to invest in more outsourcing.

Outsourcing gives SMB SaaS founders access to specialized talent for custom platforms and customer-facing apps — without long hiring cycles.

The key lies in finding a partner that excels in technical skills, approach, and collaboration.

That’s why software development agencies like Designli take a hands-on, team-based approach to act as an extension of their clients' businesses rather than just a vendor.

Maximizing the Benefits of Outsourced Teams

External, third-party teams come in many sizes and responsibilities — including for one-off projects and ongoing support — allowing in-house teams to focus on their core responsibilities without spreading themselves too thin.

 
 
 
 
 
View this post on Instagram
 
 
 
 
 
 
 
 
 
 
 

A post shared by Designli (@designlico)

The best part is that these teams can still benefit from the skills and expertise of a dedicated development team:

  • Highly Skilled Talent Pool: Access to a large pool of qualified professionals often with strong educational backgrounds.
  • Speed: An external team can start faster and focus entirely on the project, reducing the time to launch.
  • Cost efficiency: Outsourcing saves benefits, training, or additional office space costs.
  • Business focus: By delegating development and technical work, leadership can focus on business development goals without distractions.
  • Flexibility: Outsourced teams can easily scale up or down based on project needs, providing more flexibility than an in-house team.

Designli’s CEO Keith Shields said SMBs can stay competitive, and agile and address resource constraints with the help of outsourced teams.

“One SaaS company we worked with struggled to scale their product due to limited in-house resources. Outsourcing with Designli gave them access to specialized expertise without the overhead of building a larger internal team. This allowed them to launch new features faster, reduce development costs, and stay focused on their core business.”
 
 
 
 
 
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A post shared by Designli (@designlico)

However, outsourcing isn’t a one-size-fits-all solution as it can pose challenges like communication gaps, project fit, and less direct control.

SMB SaaS founders should focus on alignment, communication, and trust when it comes to long-term partnership success with a software development partner, Shields adds.

“A strong partnership goes beyond just getting the job done; it’s about working together to understand business goals, adapting to changes, and tackling challenges as a team.
Founders should look for partners who are invested in their success and can provide flexibility as their product evolves. This kind of collaboration is key to creating sustainable growth and delivering a product that truly resonates with users.”

Keys to Successful Outsourcing Partnerships

Businesses need a clear plan to maximize outsourcing. Finding the right software development partner is just the first step.

Success depends on setting clear goals, choosing the right engagement model, and ensuring seamless collaboration. Here are the guidelines Designli recommends:

  • Experience: You must be confident in the team's ability to produce a functional, effective, well-designed software product.
  • Positive feedback: Use case studies, positive reviews from previous clients, and testimonials to validate your potential partner’s claims.
  • Schedule, cultural, and language differences: Language and cultural compatibility aids collaboration and communication when schedules, cultures, and languages are aligned.
  • Security: Always ask about processes and procedures around managing your IP, and whether your potential partner has protocols to keep company or customer data safe.

However, Shields cautions against prioritizing cost over quality and expertise when selecting an outsourcing partner.

“While staying within budget is important, a low-cost partner may not bring the experience and skill necessary to meet your needs.
Another mistake is selecting a partner without aligning on long-term goals — your partner should understand your vision and be able to grow with you.
Finally, ensure transparency in every aspect of the collaboration. Partners who are clear and communicative about timelines, expectations, and progress are essential for building a strong, lasting relationship.”


For SMB SaaS founders, finding the right development partner is just the first step — ensuring long-term success requires strategic planning and technical alignment. That’s why Designli created Impact Week, a structured, no-obligation, free product audit to assess your software’s foundation and set a clear path for improvement.

Impact Week is designed to help SaaS founders navigate common challenges like missed deadlines, buggy code, and product inconsistencies by aligning business goals, user needs, and technical strategy before development even begins.

Outsourcing helps businesses scale efficiently, stay competitive, and focus on their strengths while tapping into expert talent to drive innovation.

However, outsourcing is only as effective as the team behind it, and the right development partner can make the difference between a seamless build and a costly misstep.

👍👎💗🤯
Tags:
designli 
Ilze-Mari Gründling
Ilze-Mari Gründling
Senior B2B Reporter

Ilze-Mari brings a decade of publishing experience to DesignRush, writing news, interviews, case studies, ghostwritten bylines, editorials, and press releases distributed by Reuters, AP, Dow Jones, and others. She was previously Digital Copywriter for CapeTown ETC and an in-house writer for African Decisions, a respected corporate and government journal in Africa, and Johannesburg Stock Exchange Quarterly (JSE) Magazine, the flagship publication of Africa’s largest stock exchange.

Follow on: LinkedIn Send email: ilze@designrush.com

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