IT Outsourcing How to Choose the Right Software Development Company
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By: Diana Fajardo - September 26th, 2021

Enterprises of all sizes outsource their technological needs and expect their technology partners to help streamline business processes and increase revenue. Using technology as a competitive advantage has become common, yet choosing an appropriate software solution may prove a more daunting challenge than expected.

Software outsourcing is generally cost-effective and will speed up time-to-market for businesses. Business owners sometimes need help selecting an ideal outsourcing partner, frequently opting for providers who provide standardized set services without in-depth knowledge of customer business and product goals.

With each passing year, we have witnessed an exponentially rising rise of IT consulting services offering unique plans and offerings for project management. Given such wide-ranging options, businesses must select an ideal outsourcing partner to succeed.

No one wants to work with a company they don’t trust or that lacks the appropriate expertise or passion, making integrity one of the key aspects of any successful business. Trust, love and integrity can’t always be measured but will ultimately make or break your venture’s long-term success.

Steps for Selecting the Appropriate Software Development Company

Our following guide outlines ten steps that will enable you to find a software development company best suited to your project:

Define project objectives and timeframe

Before emailing custom software development companies, clearly define your project objectives and timeframe requirements. You need to know exactly what you want built to ensure time is recovered by both parties developing it.

Don’t expect everything to be fully defined, but you should at least have an outline plan. A basic list of requirements, mock-ups, diagrams, or workflows are great places to begin. Additionally, it allows you to assess which technical skills will be needed in the project.

Taking time in this stage will help prevent trying to explain an abstract concept to development teams and potentially misinterpreting your vision, leading them to provide inaccurate budget and timeline estimates. Take care in taking this stage seriously before moving forward.

Find software development companies

Once you’ve established the objectives, timeline, and skills required for your project, it’s time to find software development companies. There are several sources where you can locate potential software development firms:

  • Use Google to search for software development companies:Both paid and organic results can be helpful when looking for software development firms. You can gather more information from individual custom software development company websites on their software development services, industries they serve, past clients they have done and work processes used.
  • Examine software development review and rankings websites:A popular example is Clutch, where search results can be organized by location, minimum project size, average hourly rate, industry focus and more.

As you explore company websites, gather as much information as possible. Look out for:

  • Company size and structure
  • Focus and strategy
  • The experience with similar projects
  • Hourly rate + any additional overhead charges
  • Workflows and business practices
  • Technology expertise
  • Services Available

You won’t find all this information online, but company websites are a good place to begin searching. When you discover a suitable one, add it to your long list and start your investigation.

Once you have your long list, email developers directly and request their portfolios, brochures, or information packs.

Check their Portfolio and Experience in Your Domain

A good starting point when comparing software development companies is to review their portfolio, both from within their firm and from customer reviews. This serves multiple purposes – checking it can indicate experience in your field and future developments.

  • Do a background check to see if a software company has done similar work to what you require
  • gauge their level of experience
  • understand if they can handle your task successfully.

Before selecting an outsourcing partner, they must demonstrate relevant experience. An outsourcing partner should understand your industry, market and business process well enough for you to feel comfortable outsourcing any given process or task to them. Be wary if a software development firm claims they have conducted similar projects but won’t disclose information.

Due to non-disclosure agreements, outsourcing companies may not always be able to disclose all their past projects; however, they should still be able to give you a general idea of their previous initiatives, how they were implemented and their impact on clients.

Make sure they act as your true partner

Knowledge of specific technologies, tools, and programming languages is required for creating an impressive software product. However, more than this alone will be needed – the ideal custom software development services should act more like an extended arm than simply an agency.

Any good outsourcing firm must fully comprehend your business requirements beyond simply understanding product functionality. Their involvement during development must align closely with your end goals so they can make better decisions as the project unfolds.

Ideal partners should enlist business analysts’ aid in creating requirements that ensure a successful software product. If your potential software development partner takes little time during sales to understand your needs thoroughly, we advise against choosing them.

Locate an Organization That Meets Your Requirements

Most software development firms specialize in certain technologies and build apps/solutions using them, so take some time to investigate if any companies meet your criteria before selecting one to work with. Our recommendation would be:

  • Select a software development company that keeps up with technological advancements:Staying ahead of changes to the technology stack is vitally important, so your chosen development company should be eager to stay abreast of any alterations or updates to its technology stack.
  • Please pay Attention to Their Software Developers’ Expertise:You’ll gain insight into their technical knowledge and competency by asking technical questions.
  • Locate a provider specializing in what you require:It’s best to steer clear of companies offering multiple specializations; experts must be more knowledgeable in all subjects. For instance, if your solution requires Node.js development services, evaluate providers specializing in Node.js solutions, as these will likely offer more value.

Assess Partner Communication Style

Software development is a complicated endeavour that presents many communication-related obstacles, from gathering requirements and understanding stakeholder and user feedback to defining requirements and meeting those demands.

Good communication skills are crucial to creating a satisfying end software product and working relationship. Being able to share, discuss, and clarify ideas throughout the development process is invaluable – this way, you and the development team always know they’re on the same page!

Be mindful of how the team communicates via email and on initial phone or video calls since this may indicate if their communication style meets your expectations.

Check Their Development Method

Does the company utilize Scrum, another Agile approach, or another development methodology entirely? A properly documented and executed project development process will increase efficiency while helping teams overcome unexpected hurdles.

Development methodologies must include adaptive planning, early delivery, frequent project updates and modern communication tools to keep project stakeholders up-to-date throughout development. Doing this will allow them to stay informed throughout all stages of project evolution.

Request Their Security Practices

Collaborating with IT services and consulting companies means providing sensitive information, so you must ask what security practices they have to ensure your idea, products and confidential materials don’t get mishandled by anyone in their team.

Before developing any solution, you must consider how it can be secured. Ask the development team whether they have established appropriate security practices and determine an acceptable security level – Not all development agencies handle security matters in an equal fashion – make sure to ask detailed questions in this regard.

Examine Company Structure and Team Dynamics

You must understand a company’s business structure and team dynamics. It would help if you had an idea of how it operates, the roles different team members occupy and their working relationship with each other.

Advice should be taken against doing business with custom software development companies that lack formal team structures. When an organization has delineated roles and working dynamics are optimized more efficiently, doing business with such an outfit would save on unnecessary overhead from working with an unorganized team.

Ask about testing and software maintenance

Before signing any software development contract, it’s advisable to understand their policy on testing. Inquire as to how testing is carried out throughout all stages of development.

Consider whether the original contract will include backup services, support, and maintenance. Avoid being told later on there won’t be support available or be faced with unexpected maintenance bills for your project; ensure all these details have been addressed before deciding on a company.


Outsourcing is an effective way to increase productivity and let experts manage your business efficiently. By choosing the ideal partner for your technology needs, you can ensure real and measurable results from this decision. In particular, expertise, experience, cost and cultural fit all play an integral part in producing prompt, high-quality software deliverables.

Working with a software development company is an effective way to balance cost, time-to-market and talent accessibility. Many start-ups have found great success outsourcing their project needs to software development vendors; I have guided them in selecting an ideal partner while outlining potential hurdles.

Finding the experienced IT consultants for your project can be like searching for a needle in a haystack. You must understand the differences and significance of key outsourcing regions to determine which location offers quality service at an economical cost, high expertise levels and an ample talent pool.

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