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What is Software Developments as a Service and How it different from IT Outsourcing?

Software Developments as a Service vs IT Outsourcing? What are the differences?

You might have heard of the term “SaaS” - “Software as a Service”, referring to a software licensing and delivery model. How about “Software Developments as a Service” - “SDaaS”? - a term for software development and licensing model, which can be highly beneficial for your company if you consider streamlining or outsourcing your software development process.

In this article, we will look at both SDaaS and IT Outsourcing and investigate their differences.

1. What is IT Outsourcing?

IT Outsourcing is an agreement in which the principal company outsources their IT and software development projects to outsiders, often agencies or freelancers. IT Outsourcing development company helps organizations to minimize expenses and focus their human resources on their expertise while handing in the IT parts to the seasoned developers. Nevertheless, IT outsourcing exposes enterprises to risks of low-quality software, especially when the agents are only responsible for one-time projects.

2. What is Software Developments as a Service?

SDaaS, on the other hand, is an on-demand and flexible software development service with predictable ongoing costs. SDaaS contract is designed to guarantee consistent maintenance and support to the launched website, just as an in-house development team would carry out the work. SDaaS allows businesses to reduce costs and risks related to their IT systems maintenance and enhancement whilst still ensuring their systems are always of the highest quality and adaptable to new environmental changes.

3. What are The Differences Between IT Outsourcing and SDaaS at SotaTek? How is SDaaS Offer More Benefits?

a. System Monitoring and Communication

Communication in Outsourcing IT development can suffer serious lapses. The long-pending time between problems and answers can lead to irreversible consequences and be troublesome for the principal company. Simultaneously, IT Outsourcing Agents are only available to complete the required work in a specified time. Software Development as a Service's team is always “on”. SotaTek SDaaS teams carry out daily system operational checks and data quality checks, which help to ensure the systems you rely on are consistently fit-for-purpose. This, in turn, reduces costly downtime and the dependency on internal resources or contracted suppliers.

b. Quick Updates and Easily Scaled Enhancements

When it comes to updating and adding new features, Software Development as a Service allows your company to flexibly and quickly employ new enhancements or develop proofs-of-concept. As SDaaS is built as a long-term partnership contract between SotaTek and your firm, deliverables can start quickly and add high value instead of one-off project service.

c. Maintenance and Support of Post-launched Software

Depending on the contract and the supplier you choose, software warranty and maintenance can cover 3 to 6 months of post-launch. Afterward, you would have to pay extra expenses and go through different contracting procedures for any maintenance and support.

Nevertheless, with SotaTek’s Software Developments as a Service, your business is fully understood. As our team accompanies you along the whole development and launching process, we can provide high quality and in-time maintenance.

d. Predictable Costs and Reduced IT Spend  

While IT Outsourcing with one-off projects might look more cost-effective on the papers, there might be future and hidden costs, which are hard to predict. SDaaS’ long-term partnership model allows more accurate cost projections and long-term growth.

Read more: Offshore Development vs. Outsourcing - Which is the Best Fit for your business?

Flexibility Maintenance Development Speed Cost
SDaaS One of the primary goals of SDaaS providers is to minimize the risks and costs of each particular project. Thus, such services often offer lots of flexibility in all stages of collaboration. Since SDaaS is a long-term partnership, it often implies ongoing maintenance for your product after they are launched. Development as a service often brings clients quick deliverables. Also, since it is an ongoing partnership, SDaaS providers can ensure quick and flexible updates and add-ons for your product. As was mentioned earlier, SDaaS is often provided on a monthly subscription basis. Therefore, the cost of such services is more predictable. And, thanks to its ongoing partnership model, it can help clients save lots of money on development in the long run.
IT Outsourcing Outsourcing solutions are often tied to a specific project, as well as methods, milestones, and deadlines set by the client in advance. Thus, there is not much space left for flexibility. Depending on the chosen outsourcing agency, you can get between 3 and 6 months of post-project maintenance. When this period runs out, you will have to pay for further maintenance. One-off project outsourcing is less flexible in terms of development speed. As a rule, an outsourced specialist or team will complete their work within well-defined deadlines, and when it comes to additional updates, these might come at an extra cost. Unlike SDaaS, IT outsourcing is project-based and, typically, implies an hourly, performance-based, or profit-sharing pricing model. Sometimes, it can be more cost-effective for one-off projects. But, there might be additional and hidden costs.

4. How does Software Development as a Services work?

Software Development as a Service (SDaaS) works by providing businesses with third-party software development resources, tools, and expertise over the internet, typically on a subscription or pay-per-use basis. Instead of maintaining an in-house team and infrastructure, companies can outsource part or all of the software development process - from ideation and planning to development, testing, maintenance, and upgrades - to the service provider.

a. Requirement Gathering

  • Client Input: The client defines their project requirements, such as the type of software (e.g., web app, mobile app, enterprise solution), features, timeline, and budget.
  • Consultation: The SDaaS provider assigns a project manager or consultant to analyze the client’s needs, refine requirements, and propose a development plan.
  • Outcome: A clear project scope, technical specifications, and a roadmap are established.

b. Team Allocation

  • Resource Assignment: The provider assembles a dedicated or shared team of developers, designers, QA engineers, and other specialists based on the project’s needs.
  • Scalability: The team size can scale up or down depending on the project phase or client requirements, offering flexibility.
  • Expertise: Providers often have professionals skilled in various technologies (e.g., Python, Java, React, AWS) to match the project’s tech stack.

c. Development Environment Setup

  • Cloud-Based Tools: The provider sets up cloud-based development environments, including IDEs, version control systems (e.g., Git), CI/CD pipelines, and testing frameworks.
  • Collaboration Platforms: Tools like Jira, Trello, or Slack are used for project management and communication between the client and the development team.
  • Access: Clients may have access to these environments for real-time monitoring or feedback.

d. Development Process

  • Agile Methodology: Most SDaaS providers follow agile practices (e.g., Scrum or Kanban), breaking the project into sprints for iterative development.
  • Custom Development: The team builds the software based on the agreed specifications, integrating features, APIs, and third-party services as needed.
  • Regular Updates: Clients receive progress updates, demos, or prototypes at the end of each sprint for feedback and iteration.

e. Testing and Quality Assurance

  • Automated and Manual Testing: The provider conducts unit testing, integration testing, and performance testing to ensure the software is bug-free and meets quality standards.
  • Security: Security audits and compliance checks (e.g., GDPR, HIPAA) are performed if required.
  • Client Review: Clients can test the software in staging environments and provide feedback.

f. Deployment and Maintenance

  • Deployment: The software is deployed to production environments, often on cloud platforms like AWS, Azure, or Google Cloud.
  • Ongoing Support: SDaaS providers offer maintenance, updates, and technical support post-launch to ensure the software remains functional and up-to-date.
  • Scalability: The provider can adjust resources to handle increased user loads or new feature requests.

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When it comes to software for businesses, your companies should seek reliable partners to guarantee that your system stays stable, secured, and always of the best quality. Here at SotaTek, our SDaaS developers will not only build and maintain your system today but also accelerate your future growth and provide your firm with the best support. Our long-term collaborative model aims to maximize your software's operational efficiency and benefits, allowing you to free up internal resources and focus on strategic priories.

If you would like to discuss our Software Developments as a Service plans or find out more about supporting your existing system, don’t hesitate to get in touch!

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SotaTek IT team
SotaTek IT team
With over 1,300 talented employees, we bridge technology and business, uniting our diverse talents with a shared goal – empowering businesses worldwide to thrive with State of the Art technology.