Oct 11, 2023

Which Factors Decide the Cost of Building a SaaS App?

Which Factors Decide the Cost of Building a SaaS App?

If your company wants to develop a SaaS app, one of the first questions will be about the cost. A deeper look at SaaS app development shows that there are several factors that you can examine to get a better idea of what the overall SaaS app development costs will be. Here are the 6 factors that decide the cost of building a SaaS App.

Features and Functionality

The features and functionality of a SaaS app play a significant role in determining the cost of development. The more complex the features and functionality, the higher the development cost.

This is why you should decide on the features and special functionality that you want to include, before starting the production process. That way, you can estimate the costs of developing all of the different components, then adjust your project planning to match those estimates. 

The best way to determine the features and functionality is to prioritize them based on your business requirements and the needs of your target market. If your wants exceed your budget estimates, then you need to trim some of the features from the plan to make sure that you can meet your basic needs first. Many companies fail to do this, which leads to scope creep to finish the project. 

Technology Stack and Infrastructure

The technology stack and infrastructure that you use for development can greatly change the costs of software development.

These include the:

  • programming languages
  • frameworks
  • libraries
  • servers 
  • Databases
  • other tools used to host and manage the SaaS app

The technology stack and infrastructure can significantly affect the performance, scalability, and security of the SaaS app, which means you need to invest in the right tools for your situation. 

Third-Party Integrations

Additionally, third-party resources that you integrate into the project can drastically change the costs. Third-party integrations are necessary for many SaaS apps because they allow users to connect with other applications and services.

For example, a CRM SaaS app may need to integrate with email marketing software, accounting software, and other business tools. Integrating with third-party services can make your SaaS app more valuable to users. However, the cost of those integrations can be higher than expected, especially if they change over time. 

User Interface and User Experience Design

The user interface (UI) and user experience (UX) design of a SaaS app can significantly affect its success. The UI and UX design determine how users interact with the SaaS app and how easy it is to use. A well-designed UI and UX can increase user engagement and satisfaction. However, designing a UI and UX can be challenging and time-consuming.

The cost of UI and UX design depends on the complexity of the SaaS app, specifically interface for users. The more complex the UI is, the more difficult it is to use, and it will be more likely that the experience is not optimal for end users. This is why companies spend a lot of time trying to create the simplest UI and smoothest UX that they can, since it has a direct impact on sales. This may mean that you have to spend more time on your UI and UX than expected, raising the costs.

Customization and Scalability

Customization and scalability are also essential factors that determine the cost of SaaS app development. 

Customization allows users to personalize the SaaS app to their specific needs. Scalability allows the SaaS app to handle a growing number of users and data. Customization and scalability are essential for the long-term success of a SaaS app.

Taking steps to make your app customizable can increase development costs because it takes more time. However, scalability is an investment worth making if you think that your app can outgrow the initial user base. It will pay for itself over time if this happens since you won’t have to go back and do more development to expand the capabilities and overall scale of the app. 

Project Management and Development Team

The project management and development team are also essential factors that determine the cost of SaaS app development. Project management involves planning, organizing, and controlling the development process. The development team consists of developers, designers, and other professionals who work together to build the SaaS app.

The cost of project management and development team depends on the size and complexity of the SaaS app. A simple SaaS app may require a small development team, while a complex app may require a larger team. Therefore, it is essential to determine the size and complexity of your SaaS app before hiring a development team. You should also consider the cost of project management and the development team when budgeting for your SaaS app development.

Offset the Costs By Working with KitelyTech

SaaS app development costs can make it difficult for a company of any size to get the project started. However, you can offset some of those costs by working with a skilled development team with a lot of experience, like the SaaS development team at KitelyTech. We work with companies to develop SaaS apps and other resources to thrive in an online e-commerce-driven economy. Call us at (800) 274-2908 to discuss your next SaaS app development project.