How to Choose the Right Software Development Company and Succeed

How to choose a software development company? This is a question you've probably asked yourself when planning to build a digital solution for your business or modernize legacy software. Choosing a software development company is a critical step for the success of your project, so it is important to pay enough attention to it. In this article, we will tell you how to find a development partner and give you valuable tips on selecting the best one.

How to choose custom software development company? This process is quite complicated and responsible, as the success of your project depends on your choice. In this section, we will present you with the main 11 consecutive steps that will help you select a software vendor for your business.

Before choosing a software company, it's essential for you to have a clear understanding of your project’s goals and requirements. Whether you're focusing on a digital startup, streamlining business operations improvement, or integrating new technologies into your current solution, a well-defined vision will set the stage for success.

Establish specific, measurable objectives and adhere to strict timelines to facilitate effective planning and resource management. Thoughtful project planning not only helps control development costs but also enhances overall efficiency. Additionally, you should define beforehands what platforms you want to develop your solution for, and what your software is aimed for. When evaluating potential development teams, prioritize those that align with your goals and can deliver high-quality outcomes.

Consider various collaboration options, from working with local companies to outsourcing. Determine which format of work best suits your needs. Local companies may be more accessible to organize cooperation due to the similarity of mentality and the same time zone, but their services are typically much more expensive.

Consider the benefits of outsourcing, such as cost savings, access to global expertise, and faster project launch. Outsourcing services are differentiated by various parameters (e.g., location, relationships, project-based). We’ll look through one of such classifications of types of outsourcing models by location for you to gain insight and choose the cooperation model that suits you the best:

• Onshore software development — your vendor is in the same region as yours (e.g., you and your vendor are both from US)
• Nearshore software development — provider’s location is in the adjacent country (e.g., you from Estonia apply to an UK provider)
• Offshore software development — the vendor is situated far away from you (e.g., your US company contacts the vendor from Central/Eastern Europe)

Analyze the market and create a list of potential vendors to choose a software development company among them. Consider factors such as industry expertise, project scope, and specific technology requirements. Identify companies that align with your business domain, ensuring they have experience in your field.

This process allows you to have a broad overview of available vendors and facilitates a more informed decision-making process. The list will serve as a foundation for evaluating and selecting a software development company that best suits your needs and objectives.

When choosing software development company, you should ensure they know common issues, regulatory requirements, and best practices for your industry. It is specifically relevant to domains like Healthcare or FinTech, where stringent laws apply, requiring a team that brings experience from working in such domains. So, if you’re considering software development outsourcing, prioritize companies that adhere to industry standards and offer skilled professionals.

Reviewing the vendor’s portfolio is equally as important for you to measure their technical prowess and past success. Looking through past projects provides insight into whether they have completed similar work, which will inform whether they are capable of addressing your specific needs. For example, if they have previously built a fitness app, they probably have prior experience integrating features like GPS tracking. While this can help save money if you develop offshore, if you would like to make sure that is fine, look at past projects to ensure you are getting quality and reliability.

Make sure to hire software developers with the technical skills that fit your project when choosing the best software development company. Evaluate their technology stack, programming languages, and tools, and ensure their capabilities are capable of managing the types of software your business needs. The top engineers work with cutting-edge innovations such as AI, blockchain, and AR/VR.

Selecting the right technologies is a critical step in building a successful software solution, making it essential to assess the tech stack of any app development company you consider. Understanding their expertise allows you to determine whether they align with your project requirements and the best approach to achieving your goals.

For instance, if you plan to create an iOS-based mobile app, you should ensure they know how to develop solutions with the help of Swift and Objective-C as well as they can work with platform-specific libraries and frameworks (e.g., ReactiveCocoa, Alamofire, Moya, etc.). Since development costs can vary depending on the technologies used, discussing your options in advance is a smart strategy.

Partnering with an experienced team proficient in cutting-edge technologies, like Cleveroad, ensures the creation of scalable and efficient solutions.

Ensuring data security is a critical aspect. Choosing the right software development company includes clarifying what specific security measures the vendor has in place to protect your sensitive information. This may consist of using encryption, security practices in the application, and data processes. There's never too much security, especially when working with details like users' payment or personal data.

A reliable IT vendor sets an official security policy to monitor all the operations with the help of the following security handling instruments:

• Non-Disclosure Agreement (NDA) can be signed per your demand to protect the uniqueness of your app concept, and your company confidential data
• Access to data for developers working on your project. They don't need access to the entire database; if you like, you may merely share an anonymized copy of it.
• Secure Socket Layer (SSL) certificates can be used to verify the identity of contracted developers you work with.

Cleveroad has successfully obtained ISO 27001:2013 certification, ensuring the secure management of information in our projects.

Prior to engaging with a software development company, visit the reviews page on their sites to get an idea of their reputation. Search for more than testimonials on the professional website: Clutch, GoodFirms, or Upwork can give you verified reviews.

Make sure the company has effective communication policies to ensure smooth collaboration as well:

• Language proficiency. It is better to have a team with good English skills to avoid misunderstandings.
• Stable infrastructure. Look for reliable Internet and modern communication tools (e.g., Zoom, Jira, Google Meet).
• Transparency. Open project management provides insight into the work being done.
• Availability. Be sure to know if the company is readily available when it’s needed.

Underlying good communication and positive customer reviews show a trusted vendor.

Tenured vendors typically provide several cooperation models. When you choose the best software development company, make sure that you will be able to cooperate according to a model that suits you. For example, we at Cleveroad offer such cooperation models:

• IT staff augmentation: IT staff augmentation services involve temporarily provisioning specialists to augment your existing team to perform specific tasks. This model is also perfect for when you don't need a full team and allows for easy scalability depending on your needs. The vendor provides the necessary skills, while oversight and management remain in your hands.
• Dedicated development team: Dedicated development team services imply assembling a separate team to work exclusively on your project in this model. This provides more flexibility and control over the process from your side.
• Project-Based (Fixed and Time & Material): The model is based on executing a specific project with a fixed budget (fixed) or paying for actual time spent (time & material). The former involves setting the price for the project, and the latter consists of paying for each hour of work.

Understanding the Software Development Life Cycle (SDLC) of a company is crucial for effective collaboration. Familiarize yourself with the vendor's approach to SDLC, encompassing planning, development, testing, deployment, and maintenance stages. This insight ensures alignment with your project expectations and facilitates smoother communication and coordination throughout the software development process.

We practice Agile SDLC here at Cleveroad, which means we are flexible, receive constant feedback and introduce improvements in short time. With this approach, we help our clients adapt fast to ever-changing requirements, ensuring faster time-to-market with exact, meaningful, high-quality software.

It is important to clarify whether the team provides Discovery Phase services, as not all IT companies offer it. Why is it so critical? The Discovery Phase is a preliminary phase where the team defines the requirements and objectives of the project. A team providing Discovery Phase services helps you get a clearer picture of the project, strategize, and avoid potential problems in the future. Completing this phase will allow you to speed up development and reduce costs, so consider choosing software development company that provides such services.

Project estimation involves the vendor's methods and criteria to determine the budget and timeline. It may include a detailed analysis of requirements, task complexity, scope of work, and technologies used.

Clarity in software project estimation helps avoid misunderstandings and provides transparency in financial matters. Making up a brief helps you to describe your request and task to the developers clearly. It’s desirable to receive a cost estimate in return even before the cooperation agreement, which will clarify your expenditures. Thus, such a reply evidences two positive things:

• A company is eager for cooperation and ready to provide you with all the essential data even before working together
• The team actually took your project into consideration and calculated the cost of the requested task so that the price may be precise. Rough cost estimation prevents overpaying and naming a random price so you can see what in particular you pay for.

When you plan your own software development project, you want it to be successful and profitable. How to accomplish the best results with it? You can look for an IT vendor that is experienced in creating apps, has a solid portfolio, and offers qualitative results to boost your business profitability, performance, and workflow efficiency.

We’ll give you some valuable tips to choose a software development company:

Examine the vendor's website to gain insights into their services, expertise, and portfolio. So, when choosing a software company, look for a clear presentation of their offerings, key technologies they work with, and examples of past projects.

Check for client testimonials or case studies to understand their track record. Ensure that the website provides reliable contact information, including an email address or a contact form. Evaluate any blog or resources section to gauge their industry knowledge and commitment to sharing insights. A well-structured and informative website is often indicative of a professional software vendor.

There are many resources you can search for a software development vendor. Clutch is one of the most trustworthy platforms for finding verified IT companies. The service provides a wide range of possibilities for anyone looking for a software development firm, starting with a category of interest. For instance, there are more than 27,000 businesses from all over the world listed under the category of bespoke software development organizations.

This is what Hans J Skovgaard, CTO at Penneo, writes about collaboration with us:

Moreover, Clutch provides information about the company's services, hourly rates, required project budget, location, personnel count, and contact details.

In addition to professional platforms (e.g., Clutch, ITFirms, Glassdoor, GoodFirms), leverage Google search to broaden your options and gather more information about potential software development vendors. Use relevant keywords, explore company websites, and assess online presence to make informed decisions.

How to choose the best software development company to work on your project? You can always request referrals. There's a good chance that someone in your professional network can recommend a reputable individual. However, this approach needs a huge network of business contacts. Your chances of finding and contacting a trusted vendor increase the more individuals in the business you know.

A regularly updated blog or publications on social media can tell that the firm is proficient enough to provide the users with additional info. Moreover, social media accounts allow you to evaluate the proficiency and experience of the company. But it’s not necessary to check their every blog post thoroughly, just look through the titles and topics. And pay attention to the publication date – new content should appear regularly.

As for social networks, the most popular platform for B2B companies is LinkedIn. If you're choosing a software development company, you’d want to gather as much info as you can. And their LinkedIn page helps you find the firm's description, location, number of employees, and lots of other details.

Github is a collaborative code hosting platform and a company's portfolio of code. Developers use it to show their coding skills, create code repositories, and manage their work. On Github, you'll see whether the team delivers reusable, laconic, and easy-readable code, how often it's updated, and so on.

Check out the company's profile on Dribbble, an interactive designer platform. Here, they showcase their creative projects, which will help you evaluate their design skills and work style. High-quality designs and activity on Dribbble indicate the company's experience and creativity. This tool will help you make a more informed decision when choosing a software development company.

Agile model in SDLC is a point of reference. It's based on customizable planning, fast delivery, development flow updates, and communication instruments. This means you'll keep up with each stage of project building if choosing a software company with such a development methodology.

But even if the company works in agile, ask what’s your role in it. Every organization implies agile methods in its own way, so clarify everything beforehand. This basic information about choice of a software development methodology will help you to conduct the primary assessment of the software development company’s level.

Choosing a software company to work with has its own challenges and impacts both on the cost, reliability, trust, and overall success of your project. Knowing obstacles like these enables you to make more informed decisions and avoid costly mistakes. Here are some pivotal points to keep in mind — and how to deal with them.

There are many companies that cannot even give you an overview of how much your software development project will cost, so your budgeting is difficult. However, without a starting amount, you run the risk of experiencing unknown costs and extended projects.

Cleveroad solution: We assess your software development needs upfront to provide a clear-cut, rough estimate. It ensures financial clarity before the start as well as avoids financial exceedings. Our experts make 2 types of rough estimates: Solution Design Workshop (which is free of charge) and Discovery Phase estimate.

Without verifiable feedback from clients, you can never miss the credibility of a vendor. When choosing a software company to collaborate with, kindly note that an IT partner with few public reviews or testimonials might be inexperienced or cover up poor performance.

Cleveroad solution: Our software developer’s portfolio shows successful works, while Clutch reviews also confirm the satisfaction of our clients. With verified references, you can be sure you’re working with a reputable provider.

Missed deadlines can delay product launches and increase costs. A vendor without a defined workflow or delivery milestones fails to call on expectations. It costs productivity and revenue to the team.

Cleveroad solution: We set clear deadlines and follow Agile methodologies to speed up the process. Moreover, we have experienced software teams that deliver high-quality solutions, keeping a check on deadlines. Our company also offers you a robust PM office for strict control of your software development projects.

When it comes to effective collaboration, complex ideas need to be communicated clearly. This is essential because miscommunication leads to misinterpretation, slow decisions, and the quality of your software development projects.

Cleveroad solution: As professional software developers with decent English to communicate on project matters, we can talk to the point and dodge unnecessary processes to complete the project smoothly and satisfy your needs. Clear communication reduces confusion and increases the pace of progress of your product development.

Choosing the right software development company involves due diligence. You need to evaluate pricing, trustworthiness, processes, and availability in order to make the best decisions for your business. Successful outcomes happen at the intersection of transparency and technical expertise, so the best software developers understand this concept to create a successful work environment.

Let's summarize everything we discussed and find an explicit algorithm for choosing a software development company for your project. Use this checklist to succeed.

First, gather a list of potential partners from which you can choose a software development company. To do this, check out professional platforms such as Clutch, ITFirms, GoodFirms, and Glassdoor. Also, use Google search to expand your ability to find the right software development agency. You can also ask for referrals to find a verified company.

Choose software development company that has experience in your industry, since it is the critical part of success. Understanding the business domain will ensure better communication and successful project development. Explore the company's website to understand what industries they work in and what business domains they have experience with.

Thoroughly research the software development vendor's technology stack, tools, and programming languages. Choose a software development company whose technical skills match the requirements of your project. For example, if you plan to build mobile application, ensure that the selected vendor provides mobile app development services.

When choosing a software development company, finding out what security measures the vendor can offer to protect your data is critical. Ask if they use industry-standard data encryption, secure practices in the application, and adhere to data handling processes.

Research customer reviews on Clutch, GoodFirms, and other platforms. This will give you an idea of the company's previous projects' satisfaction level and success rate. Choose the best software development company with the most positive reviews.

Evaluate how information sharing and communication are organized during the project. Clear communication plays a vital role in a successful collaboration. Choose a software development company that can communicate effectively with your team.

Take a closer look at the team's approach to work. Analyze their involvement in the upcoming project and their level of proactivity. These factors are essential to ensure effective collaboration and successful project development and implementation.

Cleveroad is a software development company with R&D centers in Estonia, Poland, and Ukraine and representative offices in the US and Norway. Since 2011, we've been helping startups and small, medium, and large-scale businesses automate processes, increase client engagement, and improve efficiency with robust software solutions.

Our team has experience in software development for various industries, including Healthcare, FinTech, Logistics, Education, Retail, Travel, etc. The Cleveroad team has expertise with modern and emerging technologies, such as cloud development, blockchain, smart contracts, Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), etc.

We have 280+ in-house software engineers on board, 64% of whom are senior and middle level experts. Since 2023, Cleveroad team has completed certifications for two international standards: ISO 9001:2015 (quality management) and ISO/IEC 27001:2013 (information security management). Additionally, we have achieved the status of Amazon Web Services (AWS) Select Tier Partner within the AWS Partner Network (APN).

We guarantee our clients transparency in projects and effective communication, ensuring openness and understanding of each stage of development. For this purpose, we stay in constant contact with the client, respond promptly to changes in the project, and hold scheduled meetings with the client to discuss the project's progress. For the convenience of our clients, we offer flexible cooperation models depending on your needs:

• Staff Augmentation
• Dedicated Team
• Project-Based model

Our experts are passionate about every project, getting involved, and working hard for a successful release. If you are looking for a software development company that can fulfill your business needs - Cleveroad is an excellent choice, so don’t hesitate to contact us to talk about your software idea!

See what Hans Jørgen Skovgaard tells about their cooperation with Cleveroad software development company. Hans is a CTO at Penneo company having about 3000 clients within various industries, including Audit and Accounting, Finance and Banking, Real Estate. They also had cooperation with such well-known companies as Deloitte, KPMG, Jyske Bar and others.