Fitness Tracker App Development: Features, Costs, and Best Practices

Forbes claims the global nearshore software development services market could exceed $425 billion by 2026. Meanwhile, Forrester reveals that 39% of technology leaders are set to boost their nearshore spending, tapping into cost savings, expert skills, and geographic advantages. 

The message is clear: nearshoring is here to stay. To break it down, we've outlined what nearshore software development means, its key benefits, and the signs that indicate it's time to make the switch. Let's dive in.

What is Nearshore Development Services? 

Nearshore software development is an outsourcing model where companies contract app developers in a nearby country for their software projects to a third-party team in nearby countries, i.e., a country within 1-4 time zones. 

How Does Nearshore Outsourcing Work?

Nearshore software outsourcing kicks off with evaluating your business processes. This allows you to spot tasks that could benefit from external expertise. After these functions are precise, set specific and measurable goals for your outsourcing project. It will guide you in finding a nearshore partner in a neighboring country. 

Pick a nearby country that meets your project needs. Focus on cultural fit, language abilities, and needed technical skills. Consider the reputation, client reviews, and ability to deliver high-quality nearshore software development services. Try Clutch or Goodfirms, get referrals from your industry peers, or attend IT events to find potential vendors of nearshore development.

After you've picked the right partner, work out a detailed contract. It must outline the scope of work, timelines, deliverables, and performance metrics. 

Then comes a careful transition. It features knowledge transfer and system integration, which helps ensure a smooth handover of responsibilities. Collaboration stays strong with practical communication tools and regular performance reviews. This approach fine-tunes the process and boosts strategic efficiency. 

Finally, check on the completed project being delivered on schedule. It should meet the specifications and quality standards you discussed from the start, reflecting the collaboration you've built.

Advantages of Nearshore Software Development Outsourcing

Nearshore outsourcing delivers world-class software development without offshore complications. Shared time zones, cultural alignment, and easy access make it a no-brainer for businesses that want speed and agility. Read on below for more benefits of this outsourcing model:

Cost-Effectiveness

While nearshore software outsourcing may come with a higher price tag than offshore options, it offers superior quality at a reasonable cost. This model reduces travel expenses for meetings and minimizes time zone coordination costs.

For example, in healthcare, nearshore teams develop compliance-driven software without incurring the high costs typical of local development, while in manufacturing, cost-efficient nearshore solutions enhance automation and streamline supply chain management.

Cultural and Time Zone Alignment

Nearshore development teams often share similar work ethics and legal frameworks with their clients, which is particularly beneficial in industries like banking. This alignment ensures smoother regulatory compliance when handling sensitive financial transactions. 

In retail, understanding regional consumer behavior is crucial for developing user-friendly e-commerce platforms. Overall, this model naturally boosts better communication and more efficient collaboration. 

Access to Skilled Talent

Nearshore hubs offer a rich talent pool with expertise in niche technologies. In fintech, developers ensure secure payment processing, while gaming benefits from advanced AI and graphics specialists. Strong STEM education and digital infrastructure in Latin America and Eastern Europe produce skilled developers who bring fresh perspectives and cutting-edge solutions.

Faster Time to Market 

Nearshore software outsourcing shortens development cycles and accelerates time to market. Startups launch MVPs faster while telecom firms roll out software updates seamlessly. Shared time zones enable real-time feedback and problem-solving, keeping development agile and release cycles efficient.

Increased Security & IP Protection

Nearshore outsourcing provides greater legal protection compared to offshore options. In biotech and pharmaceuticals, it ensures data security when handling sensitive research information. In cybersecurity, nearshore teams enhance compliance with local data protection laws.

Nearshore vs. Other Software Development Models

Nearshore software development involves collaborating with teams in neighboring countries, usually within the same or similar time zones. 

On the other hand, offshore software development is when companies hire development teams from other countries. These teams are usually located in different time zones. This model often results in lower labor costs, so it's a great choice for businesses aiming to save money. 

And lastly, onshore means outsourcing software development to teams in the same country. This approach makes communication easier and ensures a better cultural fit, but it often comes with higher costs than nearshore or offshore options.

This closeness leads to better communication and collaboration, resulting in quicker feedback and more efficient project management while being more cost-effective than local hiring. Here is a breakdown of the main differences: 

Nearshore vs Offshore vs Onshore: Key Differences

Key Services Offered in Nearshore Development

Looking for efficient and cost-effective software development? Nearshore teams provide top-tier services that capitalize on proximity, clear communication, and affordability, including:

Nearshore Application Development

This service focuses on developing mobile, web, or desktop applications. Nearshore developers can handle all stages of nearshore application development, from design to deployment, ensuring that applications are user-friendly and meet market demands.

Nearshore Product Development 

Nearshore teams can manage the entire software product development lifecycle, including conceptualization, design, coding, testing, and launch. This service is ideal for companies creating complex software products without extensive in-house resources.

Nearshore QA and Testing

Quality assurance and testing services delivered through nearshore teams provide comprehensive coverage across manual and automated testing needs. Nearshore development services include functional testing, performance testing, security testing, and test automation implementation. Nearshore QA teams work in parallel with development cycles, ensuring rapid feedback and issue resolution. The shared time zones facilitate real-time bug reporting and verification, leading to faster quality improvements.

Nearshore Custom Software Development

This involves creating tailored software solutions to meet specific business requirements. Nearshore teams can develop software from scratch or enhance existing systems to improve functionality and efficiency.

Nearshore App Development

Mobile development services through nearshore teams cover both iOS and Android platforms, delivering native and cross-platform solutions. Services include nearshore app development, app modernization, and mobile-first transformations. Teams specialize in creating responsive, user-friendly applications while ensuring optimal performance and security. The collaborative timezone allows for swift iterations based on user feedback and market demands.

Nearshore UI/UX Design

Nearshore design teams provide comprehensive UI/UX services aligned with current nearshore development market trends and user expectations. Services include user research, wireframing, prototyping, and interactive design implementation. The proximity enables regular design reviews and quick iterations based on stakeholder feedback. Teams work closely with developers to ensure design integrity throughout implementation.

Nearshore Maintenance and Support

Maintenance and support services through nearshore teams ensure continuous system reliability and performance. Services cover bug fixes, speed improvements, security patches, and new features. The shared time zone allows for responsive support during business hours and efficient handling critical issues. Teams provide both scheduled maintenance and emergency support to maintain system stability.

When Do You Need a Nearshore Development Company?

While nearshore outsourcing offers numerous benefits, the real question is: When is the right time to switch to nearshore outsourcing? Typically, organizations turn to nearshore in times of operational hurdles. But the reasons don't end here. 

Let's examine the situations that suggest your company might be ready for this transition.

Operational focus shifts away from core business needs.

As projects grow, your team may become overwhelmed, losing focus on core priorities. When that happens, it's time to reassess your strategy. This is where a nearshore software development partner can step in. For companies where software isn't a primary function, nearshore teams provide the support needed to maintain balance, ensuring that business goals and development demands align seamlessly.

Challenging resource allocation.

Finding the right software developers can be challenging if you don't have an in-house tech team. It's become even trickier when there isn't much local talent available. Some companies use freelancers or various outsourcing vendors to fill gaps. This is where nearshore development offers a better overall solution. 

You have budget constraints.

If building an in-house tech team is too costly, nearshore development offers a practical alternative. Companies can scale efficiently with access to skilled developers in cost-effective regions like Central & Eastern Europe or Latin America. A nearshore partner also ensures proper resource allocation, allowing you to integrate developers into your team while controlling costs seamlessly.

Your business is scaling fast.

Expanding into new markets, businesses often need additional resources at short notice. This is particularly true for startups experiencing rapid growth. A nearshore development partner provides an efficient way to scale, offering access to top-tier developers who can tackle rising workloads and pressing projects. With vast talent networks, nearshore teams ensure seamless expansion.

How to Choose the Best Nearshore Development Partner

Basically, when you choose a nearshore software development company, start with your project needs. Then, check the developer's skills and credentials. Also, consider their way of working, how well they fit your culture, and how they communicate. The steps to finding the best fit for the project don't end here. Below, we share a detailed overview of practical ways to find the right one:

1. Clarify Your Project Scope.

The truth is, there are no two businesses alike, even in the same niche. Yet, their challenges differ, too. Before reaching out to nearshore software development teams, define your project needs. 

To help vendors provide accurate proposals, include some deal-breaking questions in your Request for Proposal (RFP):

1. What is the scope of your project? (e.g., building from scratch or post-release support)
2. What specific tech stack does your project require?
3. Are you looking to hire an individual developer or an entire team?

2. Research Nearshore Developer Candidates.

Nearshore software developers are easy to find. Yet, without proper vetting, you risk delays, miscommunication, and subpar work. Do your homework. Find candidates with the right skills, experience, and work style to fit seamlessly into your team.

You can find potential nearshore software developers by:

1. Google Search. Search for "software developers" + [specific country] to find potential candidates. Then, review their websites to assess their IT services, expertise, and past projects.
2. Specialized Directories. Clutch features company profiles, service offerings, and client reviews, while GoodFirms highlights vendor portfolios with visuals.
3. LinkedIn. Search for nearshore development services, then narrow down by region and sector.
4. Professional Networks. Seek referrals from trusted peers and leverage proven partnerships.
5. IT Events. Join international or regional tech events to network with nearshore developers.

3. Verify the Developer's Credentials.

Never skip due diligence when hiring a developer. First, check their portfolio—real expertise is backed by real work—if it's missing, move on. Next, scan reviews on Clutch. Delays, misaligned projects, or budget overruns are red flags. A history of satisfied clients points to a dependable vendor.

4. Evaluate Collaboration Methods.

Nearshore outsourcing relies on structured workflows, not just shared time zones. Ask vendors how they communicate and track progress. Many use Trello, Slack, or Jira to update clients and gather feedback, but tools alone aren't enough. A solid workflow ensures efficiency and adaptability. Plus, discuss how they measure progress and refine products. A clear process minimizes miscommunication and keeps your project on track.

5. Check On Cultural Fit and Communication.

Nearshoring often offers cultural and language similarities, but there are some exceptions. Even neighboring countries can have unique work styles and languages.

For instance, Australia is 3 hours ahead of China. So, China could be a good nearshoring choice. Yet, there's a catch: many Chinese developers lack fluency in English, and their working methods can differ significantly. Therefore, for Australian clients, turning to European software companies proves to be a smarter choice, promoting smoother communication and a collaborative spirit.

6. Interview the Software Developer.

Communication can derail your project even with shared language, time zones, and culture. Therefore, an in-person interview is critical. It allows you to assess the project manager's or business lead's responses, revealing potential red flags.

Treat this interview as a deep dive into the nearshore developer's expertise. Extract insights before committing. Hiring is a long-term investment; mitigating risks upfront is essential.

These questions will help you determine if the candidate is the right fit:

1. What development methods do you use?
2. How do you keep communication clear with clients?
3. What tech stack and tools does your team specialize in?
4. How do you find and fix issues during development?
5. What roles and skills are needed when assembling a team for my project?

Best Nearshore Locations

Below is an overview of the best nearshore software outsourcing locations across Latin America (LATAM), Eastern Europe, and Asia, including descriptions, hourly rates, and relevant statistics.

Best Nearshore Locations in LATAM

LATAM offers skilled, cost-effective outsourcing with convenient time zones. Here is a list of top nearshore LATAM destinations:

1. Mexico

Known as North America's nearshore powerhouse, Mexico offers proximity to the U.S., cultural alignment, and a large talent pool of 220,000 tech professionals. Its bilingual workforce and growing IT sector make it a top choice for nearshore software development and IT outsourcing.

2. Brazil

Brazil is LATAM's largest economy and a leader in AI, fintech, and cloud computing. With over 500,000 developers, it is ideal for companies seeking expertise in advanced technologies.

3. Argentina

Argentina excels in English proficiency (ranked #1 in LATAM) and has a strong remote work culture. It is a cost-effective option for high-quality software development.

4. Colombia

Colombia is a rapidly growing IT outsourcing hub with government investments in STEM education. It specializes in nearshore app development, data analysis, and cybersecurity.

Best Nearshore Locations in Eastern Europe

Skilled talent, low costs, and tech expertise make this region a prime outsourcing hub. Here is the list of nearshore destinations in Eastern Europe:

1. Ukraine

Ukraine remains a strong outsourcing hub, and offers expertise in web nearshore development, mobile apps, AI, and blockchain.

2. Poland

Poland is recognized for its high-quality tech talent and strong English proficiency (ranked #16 globally). It offers robust expertise in software engineering and financial technology.

3. Moldova

Moldova is an emerging outsourcing destination with affordable rates and a growing reputation in web nearshore development and cross-platform mobile apps. Its Digital Moldova 2030 strategy supports IT growth.

4. Baltic States (Estonia, Latvia, Lithuania)

Estonia:

Known as the "Digital Society Architect," Estonia excels in secure digital systems and e-governance solutions.

Latvia:

Specializes in data engineering services with a startup-friendly ecosystem.

Lithuania:

A FinTech hub with expertise in blockchain and semiconductor manufacturing.

Best Nearshore Locations in Asia

With strong English proficiency, diverse talent pools, and growing innovation hubs, Asia remains a top choice for businesses seeking efficiency and scalability. Read on for the top nearshore locations in Asia.

India

Offers the most vast talent pool and expertise in advanced technologies like AI, blockchain, IoT, and cloud computing. Cities like Bangalore, Hyderabad, and Pune are renowned IT hubs with strong infrastructure and government support for foreign investors.

Philippines

The Philippines is home to over 1,000 IT-BPO companies and ranks highly for cultural alignment with Western businesses. It excels in customer service outsourcing and mobile app development. Its high English proficiency (ranked #2 in Asia) ensures seamless communication with Western clients. Manila is a top global outsourcing hub.

Vietnam

Vietnam's IT sector grows by over 25% annually, supported by government incentives for digital transformation. It specializes in nearshore software development, mobile apps, and e-commerce solutions. Cities like Ho Chi Minh City and Hanoi are tech hubs with growing infrastructure.

China

First, China leads globally in R&D investments and is home to major tech hubs like Shenzhen and Beijing. Moreover, it has a highly skilled workforce with expertise in AI research and hardware development but faces language barriers for Western clients. While language barriers may exist, China remains a top choice for advanced technical projects.

How to Establish a Nearshore Development Center For Long-Term Success

First, set clear, measurable goals and a detailed roadmap outlining growth and scalability for robust, long-term success. Choose a location that provides a rich pool of skilled professionals and aligns with your cultural and operational needs. Invest in state-of-the-art technology and agile project management tools to facilitate continuous feedback and iterative improvement. 

By building a flexible framework that can adjust to evolving project demands and industry trends, your nearshore development center will become your organization's sustainable, high-performance extension.

Choosing the Right Nearshore Software Development Outsourcing Partner

Selecting the right outsourcing partner can make or break your project's success. Look for a partner with a strong track record in delivering custom software solutions and proven expertise in your industry. 

Key factors include cultural and communication alignment, transparent processes, and a commitment to quality and security standards. 

A reliable partner should offer scalable solutions, regular performance reporting, and robust security certifications to protect sensitive data.

You can secure a partner whose technical capabilities and business values align with your long-term objectives by conducting thorough due diligence and engaging in meaningful discussions.

Managing a Nearshore Software Engineering Team Effectively

Establish clear communication channels using collaboration tools like Trello, Jira, or Slack, and schedule regular check-ins to maintain alignment across all teams. Encourage an open environment where feedback is welcomed, and team members feel comfortable sharing insights and challenges. 

Regular performance reviews and agile adjustment strategies help maintain high productivity and quality standards. By setting clear expectations and monitoring key performance indicators, you can integrate your nearshore team seamlessly with your in-house staff, driving consistent, exceptional results.

Nearshore Agile Development: The Key to Success

When it comes to "what is agile software development," it refers to a flexible, iterative approach to software development that focuses on collaboration, adaptability, and continuous improvement.

Unlike traditional development methodologies, which follow a linear and rigid process, agile methodologies prioritize frequent customer collaboration, iterative development cycles, and the ability to respond quickly to changes and new requirements.

Key components of nearshore agile development are:

• Individuals and interactions over processes and tools.
• Working software over comprehensive documentation.
• Customer collaboration over contract negotiation.
• Responding to change by following a plan.

These principles emphasize the importance of communication, flexibility, and customer satisfaction throughout development.

Key Benefits of Nearshore Agile Software Development

Outsourcing software development brings clear benefits to businesses—faster time to market, cost optimization, and streamlined process management. But why should you choose nearshore Agile software development specifically? Let's look at four main advantages of this approach:

Adaptability

Agile development turns change into opportunity, refining products through constant iteration. Nearshore teams shift priorities instantly, adapting to market and regulatory needs while keeping development on track.

Cost-effectiveness

Nearshore Agile development helps businesses save money while delivering quality software. Short iterations ensure efficient spending, early feedback prevents costly fixes, and outsourcing cuts infrastructure and HR costs. Companies gain flexibility without unnecessary overhead.

Risks Mitigation

Traditional development risks costly missteps due to changing markets and regulations. Agile nearshoring prevents this with adaptive cycles, continuous testing, and early issue detection, ensuring smoother project execution.

Incremental Delivery

Instead of waiting months for a launch, nearshore Agile teams ship updates continuously. Microreleases and feature toggles ensure that businesses stay responsive, test features live, and quickly improve software.

Darly Solutions' Expertise in Nearshore Development

Using nearshore software development teams has its upsides and downsides. By evaluating them carefully and, most importantly, picking the right partner and nearshore development center, companies can maximize the benefits while tackling the challenges, guaranteeing successful nearshore software development.

That is where Darly Solutions comes into play.  We offer a comprehensive suite of custom software nearshore development services, from medical device software to mobile healthcare apps. Enhance operational efficiency, improve patient outcomes, and gain a competitive edge—we are a trusted leader in nearshore software development. 

Moreover, we leverage an agile approach combined with robust project management and transparent communication.

This ensures the seamless integration of our team with your in-house strategies. Client testimonials frequently cite our ability to deliver high-quality, cost-effective digital solutions that align with long-term business goals.

Conclusion

No doubt, nearshore software development is ideal for businesses seeking cost efficiency without compromising quality or collaboration. By understanding the key differences between outsourcing models and following best practices for setting up and managing a nearshore team, you can unlock new opportunities for growth and innovation.

Partnering with an experienced provider like Darly Solutions ensures that you have the right expertise and support every step of the way. Embrace the nearshoring model today to stay competitive in the software development landscape tomorrow!

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The medical field has been developing for ages, but over the past twenty years, we’ve seen the flourishing of healthtech. And it’s not surprising: this technology is a game-changer for patient care, workflow, and life-saving. 

The healthcare industry includes producing portable devices to monitor vital signs and online medical consultations provided by modern digital health solutions. And, similarly, every private clinic should have a top-notch website where patients can book an appointment with a doctor. 

What are the roles of a medical site?

1. A communication tool with patients. A site can be easily googled. Also, it contains information about available services and specialists. Thus, it makes it much easier for clients to reach out to you.
2. A communicational channel. Internet marketing is one of the most effective tools for attracting customers, but you need a web resource to use it. Thanks to a site, you will be able to find customers among users of search engines and social networks.
3. An image-maker of your organization. You need to give a good impression to make others want to collaborate. 
4. A source of getting feedback and statistical data. Thanks to analytics systems, you can track changes in behavioral factors, perform A/B tests, and monitor the effectiveness of various traffic channels.

So, a medical website must be very comprehensive, secure, and accessible at all hours. To achieve this, it’s important to involve specialists responsible for different aspects of the work at each stage of the healthcare website development. 

Key Considerations When Hiring

Before you hire a health tech development company, it’s essential to ensure their team has the necessary hard and soft skills. The task of the dev team will be to make the site appealing to users and customize traffic channels. In turn, the site owner should provide the essential information and approve tasks in time to avoid excess of the final healthcare website development cost and pauses in the work process.

What should you bear in mind while searching web development companies for healthcare?

• Relevant experience. The more projects related to medicine they have, the better. 
• Technical knowledge. Find out if the developers know the required programming languages. 
• Communication skills. Website development is a team effort not just for the performers but also for the customers, so soft skills are vital here.
• Ability to comply with regulatory requirements. The company must know about HIPAA compliance and other legal provisions. 

Experience in HeathTech

The company you want to hire must understand your business. That’s why your healthtech development company must be experienced with medical data and technology. Look for the company that has previously worked on similar projects. They could have a background in developing electronic health record systems, medical visualization software, remote care platforms, or other products related to healthtech website development. Companies with extensive experience in this field are well prepared to meet the specific demands of healthcare software development.

Technical Expertise 

The company’s tech team should have certain skills required for medical website development. First of all, they need to ensure the security of the medical website. Secondly, it must be able to scale. This will allow you to upgrade a site following current changes like adding new services, functions, categories, or sections. It will also increase functionality and optimize it based on customer requests and company interests.

Another important aspect is defining the right tech stack. The developers must be able to choose a health tech website development programming language that meets business needs. The most popular ones are HTML/CSS, PHP, Python, JavaScript, Java, Ruby, and Swift. The final choice of one or another development tool must be made according to the goal of creating responsive web design and providing a brilliant user experience. The company should also have a skilled designer who can transfer your brand identity into the website’s UX/UI design. 

Regulatory Compliance 

A team working on a health tech site must guarantee its security as patients leave their personal data there – this can be ensured by its knowledge of how to create a secure website for healthcare providers. Specifically, such websites must meet HIPAA regulations and other confidentiality rules in health care, such as GDPR and PCI-DSS. Make sure the company is aware of these norms and can perform HIPAA-compliant website development. 

Communication and Collaboration

Healthcare website development requires ongoing communication between the client and the contractor. For example, in the beginning, you and the tech team will negotiate on choosing the right CMS for the website. Consider hiring only those who are accessible, transparent, and timely. If there are no meetings or any other forms of communication, move on to the next candidates.

Partner’s Reliability

Make sure the chosen company is trustworthy. It must be present on social media and have its website with a portfolio. Seek for clients' feedback on special resources, forums, and social networks. This way, you’ll quickly see what prior customers have said about a company's service delivery. And, if some field-specific media have published case studies about the company’s work, it’s a very good sign. 

Compliance with Your Request for Proposal 

Once you decide on a candidate, it’s time to write a project proposal. Health tech website development proposals include stating the project’s objective, target audience, budget, and other features specific to your project. This way, the potential company will understand your business needs better and be able to provide an individual proposal. 

Impression After Personal Interviewing

A key to successful collaboration lies in communication. Interviewing health tech web developers will allow you to test their understanding of your specific demands and the concept of the website. 

Crucial moments to clarify during interviews: 

1. Ask for details about their experience. Get candidates to talk about a project related to health tech they have participated in. Go into detail to assess their role and expertise.
2. Ask about the development process. Give them thorough questions to test their technical knowledge and figure out the workflow. You can also provide them with a test task to evaluate their skills firsthand.  
3. Uncover their management style. Ask if the team has worked on any cross-functional projects. Look for leadership qualities like guiding, empowering others to succeed, and handling conflicts constructively.
4. Find out the team membership. Alongside those who are usually present in the technical team, such as engineers, QA testers, and tech leads, there should also be a UX designer. 
5. Ask who will own the code. It’s much better for you if the web development companies for healthcare offer a total handover. Yet, the agreement may include a clause that allows the contractor to keep the code. The worst thing that can happen might be that the company charges you more money because of the constant glitches they fix. 
6. Question what happens if the team fails to meet the deadline. Find out how the company can repay for the lost time.

Portfolio 

Ask companies included in a shortlist to demonstrate their previous projects. A voluminous portfolio is usually a sign of a company that has extensive experience. This way, you’ll wind out what they’re capable of. The portfolio will show you if the team can manage challenging projects and meet high regulatory standards. Also, it will show how good and user-friendly their software is. And, naturally, pay strong attention to websites related to the medical field.

Conclusion

Ideally, a website solves several problems of a healthcare business at once. First, it is one of the most effective tools for attracting new clients. It also acts as a channel of communication with existing patients, forms the image of your organization, and allows you to get feedback and collect your customers’ data. All this is possible if the site is developed by the pros. That’s why you should be very picky when you want to hire a health tech development company. Follow the recommendations listed above to find the perfect fit. 

What is a SaaS product?

SaaS (Software as a service) is a software distribution model in which a cloud provider hosts applications and makes them available to end users over the Internet. Therefore, SaaS applications are not set up and maintained by companies. A monthly subscription fee gives users access to the ready-to-use software. To make an analogy, the SaaS using process is like renting a vehicle, for which the lessor pays the price and uses it on demand. Nowadays, SaaS presents not as a service but as a necessary element at the center of the functioning of every second business.

Here are some statistics referring to SaaS software:

• The global SaaS market was valued at $237.48 billion in 2022, with projections to reach $908 billion by 2030, growing at a CAGR of 18.7%.
• Over the last seven years, the SaaS industry's size has increased by approximately 500%.
• The U.S. SaaS market is expected to grow at a CAGR of 5.64% from 2023 to 2028, reaching over $186 billion by 2028.
• By 2026, it's anticipated that public cloud spending will constitute over 45% of total enterprise IT expenditure.
• Large companies (with over 1000 employees) use about 150 different SaaS products, comprising 70% of their total software usage.

Top Industries

Leading industries in SaaS adoption include healthcare, financial services, manufacturing, and retail.  This trend highlights the importance of cloud-based solutions in driving business efficiency and innovation.

• Manufacturing: Projected to surpass $19 billion in SaaS market value by 2026, with increased adoption of cloud solutions for supply chain, inventory, and production planning driving growth.
• Web and Video Conferencing: Expected to reach $7 billion by 2026, driven by remote work practices and advancements in IoT, AI, and video compression.
• The healthcare SaaS market: Is projected to grow at a CAGR of 19.5% by 2028, driven by ongoing digitalization efforts, including the adoption of electronic health records (EHRs) and telehealth solutions.
• CRM (Customer Relationship Management): Expected to grow at a CAGR of 13.43%, reaching $59.4 billion by 2027, driven by higher adoption among SMEs, cloud-based solutions, and a focus on customer engagement.
• EdTech (Educational Technology): Projected to grow at a CAGR of 19.1% through 2028, spurred by increased demand for virtual learning platforms and educational content.
• HR (Human Resources): Anticipated to expand at a CAGR of 15.8% up to 2028, with growth fueled by the need for efficient management systems, talent acquisition tools, and advanced analytics.
• Property Management: Expected to see a CAGR of 15.5% until 2028, driven by demands for automated rental management and enhanced tenant experiences.

Top Players

To get a clearer idea of what a SaaS product is, here is a list of the biggest SaaS companies known around the world:

• Microsoft Corporation;
• Adobe Inc.;
• Figma;
• HubSpot;
• Trello;
• Zoom;
• Slack.

Suppose you have experience using one of the above products. In that case, you can imagine how it works, why it is convenient, and how important it is to implement such SaaS platforms in your business.

Our company also deals with similar SaaS development services. We implemented the latest technology to build an innovative financial CRM system and booking beauty appointment platform, according to SaaS approach.

Benefits of using SaaS products

So, what are the benefits of this system for you? If you clearly understand what function SaaS products perform and your business purpose, you can formulate precise requirements for the end result of using this service. This section will list the main things that SaaS providers can offer for B2B and B2C businesses.

• You pay only for the resources and functionality that the company actually uses. There is no need to pay for the full range of services that a SaaS provider offers you. You're free to choose the necessary and critical features for your business and pay only for them.

• Economic benefit. This point can be viewed from two angles. First, you know exactly how much you'll have to pay for the subscription period, and you won't have surprises with the increased cost of the resources you've already paid. Second, you won't risk your investment in such a subscription. If your business needs a more powerful or extensive platform to deploy your capacity. You'll end your subscription to one product and switch to another without losing money.

• Accessibility to your team from anywhere. Any device your employees use - PC, laptop, mobile phone, tablet - can use the SaaS product.

• Shared use of the software by the entire team. There is no need to buy a subscription for each user within the same company; the only exception may be the limit of connected users.

• Centralized software updates. There is also no need to worry about updating the paid platform manually; the providers will do everything for the customer.

Business prospects with SaaS products

Enterprises incorporating SaaS products into their business concept are uniquely positioned to benefit from this growing trend. Here are some key business prospects with SaaS products, supported by statistics and numbers:

• Cost savings: SaaS service reduces businesses' need to invest in expensive hardware and software, which leads to cost savings. As a result, companies can save up to 20-30% of their IT costs.

• Scalability: According to 68% of companies, scalability is one of the main benefits of using SaaS. Therefore, a company can quickly increase or decrease its use of software as needed. 

• Security: SaaS products offer enterprises advanced security features to reduce the risk of data breaches, including encryption and multifactor authentication. 94% of enterprises report a noticeable increase in security after implementing SaaS.

• Competitive Advantage: 74% of companies claim SaaS gives them an advantage through the quick and cost-effective deployment of innovative software.

Summary

As you have already understood, SaaS products are not only an opportunity to effectively manage business processes and business as a whole but also a practical necessity, without which it will be easy to optimize work processes and implement large-scale projects without a platform for necessary control. 

By understanding what working principles SaaS is based on, you can maximize the potential of SaaS in your business and achieve greater success by 2030 and beyond.