The Importance of Contract Developers & the Need to Streamline Global Payouts to Support Them

Every company is a software company – in some way, shape or form.

Consequently, in the expanding universe of Software-as-a-Service (SaaS) – and the never ending reliance on software – the use of contract development talent has become a critical success factor. This strategy allows firms to access a diverse range of skills, reduce fixed overheads, and rapidly adapt to changing – often volatile – market conditions. According to research conducted by Forrester Research, Inc. (2022), contract developers now account for nearly 45% of the total development workforce in the SaaS space. Simultaneously, The Future of Work report by McKinsey Global Institute (2023) states that 40% of these contract developers are based outside the home country of the company, significantly diversifying the talent pool.

Contract developers – whether individuals or third-party organizations – present unique challenges when it comes to issuing payments. Managing payouts to different countries, in various currencies, tied to varying stages of multiple projects, is a herculean task. This process gets even more complicated when considering the preferences of contract developers in different locales. Global payouts require local preferences. A one-size-fits-all solution isn't feasible. 

Companies reliant on top-level developers must prioritize implementing a comprehensive, adaptable, and efficient global payout orchestration platform.

The Payout Problem

The global nature of contract developers’ work means that payments must be executed in a timely manner and in multiple currencies – including alternative and crypto payouts. Don’t forget the fact that each country has its own set of regulatory requirements and tax laws which need to be adhered to. Navigating this complex matrix can be time-consuming. Manual processes are prone to errors, potentially disrupting the development workflow and product / feature release cycles.

Complicating matters further, contract developers may be at different stages of multiple projects, each of which might have different payout terms. Some could be milestone-based, some might be time-bound, and others could have a different structure entirely. Keeping track of all these variables and ensuring timely and accurate payments is under appreciated and difficult.

Lastly, consider the developers' local preferences. Some may prefer direct bank transfers, others might opt for digital wallets, and an increasing number are choosing crypto payouts. The need to cater to these varying preferences while ensuring compliance and security, places an even greater burden on the finance and HR teams.

MassPay: Your Solution for Global Payout Orchestration

That's where MassPay comes into play. Designed to simplify complex global payouts, our platform offers a single solution for SaaS companies to orchestrate their worldwide payouts, regardless of complexity.

MassPay allows for seamless integration with your existing workflow systems. The platform supports payouts in multiple currencies, ensuring compliance with local laws and regulations. It offers a dynamic payment schedule, allowing for the easy adjustment of payment terms based on project timelines and milestones. We also support tax management for 1099 and 1042-S payees so you have all aspects of your contractor payout management accounted for with one partner – and one API.

Recognizing the diverse payout preferences of contract developers, MassPay supports a multitude of payout methods, including direct bank transfers, digital wallets, and even cryptocurrency payments. This flexibility ensures that your contract workforce's unique preferences are respected, fostering a more satisfied and productive workforce.

Moreover, MassPay's robust and transparent reporting feature provides real-time insights into your payout processes. This way, you can monitor, analyze, and optimize your global payouts in one place, thereby saving time, reducing errors, and maintaining a healthy cash flow.

Take the Next Step

With the contract developer talent pool poised to expand further, the challenges of managing global payouts will only grow. Therefore, it's critical for SaaS companies to prepare and adapt to this new norm.

Partnering with MassPay provides a comprehensive and efficient solution to simplify the complex process of global payouts. By doing so, SaaS executives can focus more on strategic growth and less on administrative hurdles.

To learn more about how MassPay can help you orchestrate your global payouts, reach out to our team for a personalized demo.

Let's simplify your global payout processes and empower your contract developers today!