What Are The Factors That Affect The SaaS App Development Cost?


Share on LinkedIn

In today’s age, more and more SaaS Development Services providers are entering the market, and this is surely good news. As the Saas market keeps growing, the competition is getting fierce too. Every SaaS Development Company and the individual developer is offering SaaS Development Services at competitive rates. More and more SaaS applications are getting launched and using cloud service.

However, if you are a business, what do you think of the most before investing in any app development process? What are your criteria to find the best suitable SaaS application for your business? Is there any checklist that you follow? Are there any crucial factors that you can’t do without in your SaaS solution?

Here we will talk about two things: Firstly, the list of factors that your developer must consider while developing a SaaS-based application for you and secondly.

Factors that might be adding to the cost of the SaaS development process:

SaaS application development normally offers services for overseeing information for various customers. Hence, security is a big concern. Due to this, SaaS applications have to be built in such a way that they can mandatorily make users go through a robust authentication process and verification filters before accessing any confidential or critical resources. Such robust security filters have to be developed from scratch so that no unwanted user has any access to the confidential data of your company.

It is important that your hired React Native App Development Company makes sure that every SaaS app development platform must serve all the needs of a wide user base of individuals and organisations even if they belong to the “one-size-fits-all” category. Here, a developer has to build a high configurability right from the initial stage of development. This way, the system will adjust to certain demands and needs of your businesses. A successful configurability demands highly agile & flexible dashboards. Configurability in such cases spread to areas like field labelling.

Scalability and strength
Every SaaS Development Company usually makes a promise that can take care of the scalability and robustness of the app. They assure positive capacity management features. This is done to let clients feel that it can increase the user base of the application and extend the services. However, to make this promise a reality, developers have to think of multiple factors way in advance of the actual development process before the system is in the phase of architecting. Developers have to have clarity on the following issues:

Can SaaS application accommodate extra storage capacity?

How will applications handle an increase in usage?

How to add additional connectivity to the SaaS application?

What if the app fails to do all the above? Is there any solution in such a case?

When a developer has answers to all the questions mentioned above, right from the initial stage of development, a painful process of updates can be avoided in the later stage. This must have made you understand how critical every step is in the SaaS application development process.

SaaS application is open to customization and can be connected to any other system, and this is one of the core benefits of undertaking SaaS application development through SaaS Development Services. This means the developer can take his/her time to design the API’s that have to be visible to a third-party developer who is looking forward to expanding the SaaS platform’s capabilities. This can be done during the process of integration of the SaaS platform with other systems. This adds to the use and value of SaaS applications. However, developers have to take care of many security factors at their end to ensure no security issue makes the customer API vulnerable, this might put the entire organisation at risk.

Addressing such issues from the initial stage will save your business and app development process from many issues. Efforts, time and resources will be saved to a great extent.

Why is it costly to undertake the SaaS application development process?

To understand the budget of application development, you will have to calculate the ownership expenses first. Ownership expenses are calculated on the basis of training, cost of licensing, updates, technical support, cost of a subscription, etc. You must be confident that you are in a position to bear the Cost of Ownership even after sustaining in the market for the first few years. You also have to add the cost of opportunity here as you might not be able to invest your resources and capital in other business areas. This applies especially to those businesses that invest in apps in advance. The question of SaaS app development can stretch from a couple of months to a year, you should be ready monetarily to sustain for that long.

Make a list of must-have features and wishlist features separately. Complex application features will demand more time and cost as compared to simple app features. You can reduce the cost of development by reducing the use of complex features in your app provided that the features you chose to remove from the app do not cost you app value and quality. Your hired SaaS Development Company must produce a user-friendly app that boasts high-end quality and user experience. You can choose solutions as per your objectives.

As far as the launching of the application is concerned, if you launch it on cross platforms then it will cost you more. If you launch it on a single platform, the cost will be reduced. However, it is observed that applications that are launched in cross platforms enjoy more success.

Apart from the above factors, here are a couple of more factors that add to the cost of SaaS app development. One is the API integration and another is overhead costs.

API Integration
Many of the SaaS applications have backend functionality. You make a decision on whether you want to develop these features right from the initial development stage or through API integration. If you go for API integration, the cost is lesser; while the expenses of developing the backend features from scratch are more. API integration allows you to scale your business quickly. Also, the time of development is reduced as many tasks are not performed from the scratch.

Overhead Cost
Last but not least is overhead costs. There are multiple overhead costs when it comes to SaaS app development. These costs are No One-time Cost, legal cost and accounting cost.

No One-time Cost
App development cost is not a one time cost as once your app is developed and ready for launch you have to take care of other tasks like marketing the app, spending on an advertisement, etc.

Legal Costs
Your app must comply with local and national laws and for that business has to incur certain costs in terms of filling certain forms, getting permitting or license, etc

Accounting Cost
As the user base increases, subscription increases. And as the volume of monthly subscriptions increases, bookkeeping costs ought to increase. Plus, you might also need help from a tax consultant or auditor, etc.

Amit Agrawal
As the Founder and COO at Cyber Infrastructure Inc, it is my aspiration to drive our global clients ahead in the competitive technology world by enabling them to receive huge financial and operational benefits in web development through my years of experience and extensive expertise as technology adviser and strategist. In my current position at CIS, I spearhead management of various technology initiatives, expansion of our technology capabilities, and delivery of quality excellence to our clients.


Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here