7 Mistakes You Need to Avoid While Choosing a Software Development Company

January 16, 2020
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If you want your project to be successful, you need to put much effort into selecting the right software development company. With outsourcing, you can save money and time, derive from the knowledge of experts, and receive an excellent product. However, there’s one condition: you need to choose well. In this article, we will explore:

  • Introduction: Choosing a software house like that can ruin your project
  • Mistake 1: Choosing the cheapest solution
  • Mistake 2: Not conducting profound research
  • Mistake 3: Not paying attention to the skills and technologies needed for your particular project
  • Mistake 4: Presenting your vision clearly enough
  • Mistake 5: Not checking how they organize work and how they will communicate with you
  • Mistake 6: Not feeling comfortable with the outsourcing provider and choosing them anyway
  • Mistake 7: Not checking who owns the codebase

Introduction: Choosing a Software House Like That Can Ruin Your Project

Outsourcing can be very beneficial, but it can also end up as a total disaster. History has seen a few examples of companies that lost millions because of choosing the wrong IT outsourcing provider. Fortunately for you, they made a few mistakes that are easy to avoid if you approach the process reasonably and carefully. Below we present 6 common mistakes that you need to avoid if you want your software outsourcing project to end up successfully.

Mistake 1: Choosing the cheapest solution (which means you prioritize low price above quality)

Developers that already worked on various projects and have some international experience, offer higher rates. The value costs more. Although these professionals know how to organize the whole process. They use the newest technologies and hardware. That way, your app will be finished faster. You will avoid possible delays, a lot of bug fixing or in the worst-case scenario – transferring a ruined project to another vendor.

If you decide for a software house that offers the lowest rate, it doesn’t mean you will pay the lowest overall cost. The lowest price per hour may be tempting, but it doesn’t include the length of a project. And it’s highly possible that the cheapest developers are not so experienced, skilled and do not manage projects properly.

If you seek for reasonable price combined with knowledge and high quality, check companies from Eastern Europe. For example, Polish developers are known for their excellent work quality and skills, while they offer a relatively low price.

Mistake 2: Not conducting profound research and relying only on acquaintances recommendations

Every project is different, so it needs a different approach and skills. Asking friends and family for their recommendations is a good idea. But you should’t base your decision on that only. Before you choose, you should always perform research among software development companies. How to do it?

There are various reviewing platforms that gather data about developers, along with feedback and opinions from real customers. The most famous B2B reviewing site is Clutch. You will find there a description of each project, details about cooperation and project management and assessment of each element. This is how a Clutch profile looks.

There are a few other similar websites, like, for example, Appfutura, but Clutch is the most popular one. What is more, there are also companies that hire specialists to perform profound research about existing software houses. After that, they place them in various top lists. For example, you may want to check the list of Top Software Development Companies in the World by TechReviewer or Best Developers in Poland by Top App Development Companies.

Mistake 3: Not paying attention to the skills and technologies needed for your particular project

You have two solutions. The first one is to do the research by yourself or settle with your CTO what technologies and approaches you want to use for this project. And then, look carefully for a software house that is the best in a particular field. The second solution is to look for a development company that will advise you on the best technology stack for your case. You want to look for experienced and knowledgeable developers to do it.

The best software development company should be able to advise you on the technology stack for your project. During the selection process, pay attention to their skills and technologies they use. You don’t want to be stuck with the company that uses obsolete solutions.

Mistake 4: Not presenting your vision clearly enough, so they don’t understand you well

With outsourcing, you not only want to save time, money and be able to focus on the core mission of your company. You also want to derive from the knowledge of experts. Although to be able to do it, you need to find a company that understands your business needs and vision. Moreover, they have to be experienced and knowledgeable enough to advise you. That way, you will get helpful feedback about your product, ways it can expand and its features. You want the company that delivers value to their clients and helps them grow their business.

Also, it may seem that describing your ideas is enough, but you may want some experts to help to work out your vision. Look for the companies that offer Design Sprints and Product Workshops. In case of Design Sprint, during five days you analyze your product, look for problems and solutions. Finally, you create a prototype and test it on real users.

It demonstrates the quality of a software house when they do not only take your idea and do their job without getting deeper into specifics. If you find a company that cares about your product’s success, your app development is in the right hands.

Mistake 5: Not checking how they organize work and how they will communicate with you

It’s essential to check how the company organizes work. They should have a person responsible for managing the project. That way, it will run smoothly and will be finished on time. You don’t want to entrust the development to a vendor that doesn’t know how to organize a project.

What is more, you also want a company that works according to the Agile methodology. The agile method proposes a Scrum framework to organize the project. That way, Project Manager prepares the backlog where they gather everything that needs to be done. Then, they divide the backlog into sprints. Each sprint lasts one or two weeks, and each developer has particular tasks to do during that time. At the end of each sprint, they present you the progress and new features with live demo. Seems to be a highly organized process, don’t you think? And that’s what it is. Choosing Agile development, you will be able to keep on top of it.

Although there’s one more thing. You should also settle what will be your part during the process and how will you communicate. Many tools allow a client to track the progress and interact with a development team daily. For example, at Appstronauts, we use Jira for tracking the progress and Slack for easy communication.

With proper project management and transparent communication, you can be sure that everything goes in the right direction, and the project will be finished on time. You are also able to ask for any amendments easily. 

Mistake 6: Not feeling comfortable with the outsourcing provider but choosing them anyway

While reading reviews on Clutch, you will see that happy clients often write that “they treated us like a partner”, “we felt like they were part of our team”, “they cared about our success”. And you also want to find a vendor that engages in your success entirely. A company that is as excited as you about your future product. With that kind of vendor, you will feel comfortable. You will know that you can count on them; you will trust them.

There are many dedicated companies, and you want to aim for the ones that follow the rules of partnership, commitment and engagement. Engaged developers will deliver the best possible solution for you. And if you don’t feel comfortable with them and your communication is not open, your project can end up as a disaster.

Mistake 7: Not checking who owns the codebase

Even if you are highly convinced that you found the best company for your project, before signing the agreement, check out one more thing: who owns the codebase. And, briefly speaking, you should be the owner.

The owner of the code can use it and modify it according to his needs. So imagine what the consequences could be if it weren’t you. However, the ownership of the code should be clearly stated in your agreement with a software house. Otherwise, your outsourcing partner could claim his rights to it. You also should own the documentation and all the assets. Therefore, after the project ends, you will receive all these materials.

Remember to protect your Intellectual Property rights carefully and include that section in the agreement before you sign it. Avoiding the mistakes mentioned above, you should be able to find the best and most suitable software development company for your project. The best IT outsourcing providers will also offer you proper protection and include special clauses in the contract. Read more about protecting your business in case of any delays or failures to respect the agreement.

At Appstronauts, we pay a lot of attention to making our clients feel safe and comfortable. We think that trust and open communication are crucial for the project’s success.


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