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Build a successful SaaS product by using a nearshore service provider

Updated: Jul 28, 2023

So you’re excited about building an online SaaS product - the one you have been thinking about for a while now? But now you are not sure how to start and what to do next.

Don’t worry, you are not the only one. Here we will help you understand the common pitfalls and how to navigate through them.

In this blog post we will discuss why you should consider using a nearshore service provider for your SaaS project, examples of companies that offer SaaS, and how to find the best service provider for your needs.

Building a successful Software as a Service (SaaS) product can be a challenging but rewarding venture. So much so that companies like Amazon, Google, and Microsoft have made it their own, with over 150 billion dollars invested in SaaS in 2016 alone!

To build your SaaS product successfully, you need to outsource as much of the work as possible; things will go smoother if you leave the nitty-gritty work to specialists.

A nearshore service provider is a company that operates in your region from a neighboring country and can assist you at lower costs than hiring an in-house or local team.

Many entrepreneurs still believe in misconceptions about working with a service provider and doubt to entrust the whole product development into someone else’s hands. In fact, the opposite is true.

Tech startups fail before they get to market

Building a new technology company is not easy, and that's why it's crucial to use nearshore service providers. Entrepreneurs often underestimate the complexity of what it takes to build a technology company from the ground up. At this stage, you'll have no viable product or market, you'll need to raise money, and you'll need to find a way to get customers on board.

One of the main reasons many startups fail before they get to market is because investors sometimes don't recognize the project as having long-term potential. For this reason, you should consider using nearshore service providers early on in your startup journey. A trusted provider can provide critical expertise that will allow your startup to scale more quickly than if you were building everything in-house.

Why are nearshore software development agencies a better option than in-house teams

When you’re building a SaaS product, there are so many things that need to be taken into account. There is the technical side of things, such as coding, designing interfaces and flow; then there’s the business side of things, including sales and marketing, legal, financial management, and customer support. It can be overwhelming for someone to manage all of these aspects on their own. That’s why outsourcing your software development project to a service provider is the best option. They will have the skills necessary to handle all of the different parts of the process so that you can focus on what you do best – running your business and selling your awesome product!

You should consider using a nearshore team because they have expertise that you may lack in-house. With a nearshore team, you will have access to experts who know more about their industry than anyone else. Additionally, they offer competitive prices and provide services at a faster pace than an in-house team while maintaining high quality. You can also contact them when needed with quick response times and quick turn-around time on work orders.

Nearshore software development helps tech startup founders get to market quickly

One of the most important aspects of a successful tech startup is the ability to get to market quickly. If you want to build and launch your SaaS product in a timely manner, outsourcing software development can help with that goal. With a nearshore service provider, you’ll have access to scalable teams of experts who stay up-to-date with industry trends. These companies will allow you to scale as your company grows and they’ll provide support as needed.

Mexico is the best option for outsourcing software development

One of the most popular countries for outsourcing software development is Mexico. The cost to hire an offshore team there is much lower than other countries like the USA and Canada. On the other hand the time zone and cultural similarities bring more convenience compared with India, China, and the Philippines. This creates a more equitable market for service providers in Mexico and lowers your costs overall. For example, you can expect to pay approximately $37 per hour for a developer in Mexico.

If you’re hiring a software development company though, you need to know that they are compatible with your project. To find out if your company is compatible with a Mexican service provider, you should ask them about what kind of projects they’ve worked on before, their experience levels in different languages, and any certifications so that your project is done correctly.

There are many companies that offer Software Development as a Service (SDaaS) abroad. You can find a verified one through a website like The Manifest which gives you rankings of agencies by location or language in order to find service providers who match your needs best.

Why is Mexico better than India for US businesses?

SaaS products are a growing trend and many companies are building software from scratch. In the past, it was common for companies to build their software in India but as the complexity of SaaS tools has increased, companies have begun outsourcing to Mexico for better quality and convenience. Mexico is cheaper than the USA when it comes to labor costs, regulations, and infrastructure.

Mexico is also in the same time zone as the US so communication is much more direct and immediate compared with India. Additionally, whenever there is a need to meet in person Mexico is a same-day round trip away, while India does come with a heavy jet-lag.

It may cost some time and money up-front but Mexico is a great option for US businesses looking to save money.


Before hiring a nearshore service provider, make sure you present them the main idea and vision of your project.

Learning how to write a software development brief is essential in order to get the best proposals for your business needs.

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