A comprehensive guide on selecting a software development company that aligns with your needs, business model, and budget. Additionally, we offer some advice to help you steer clear of poor choices and effectively negotiate with your partner. Let’s allow Sphinx to lead you through the process.
1. Step to choose & evaluate your partner
1.1. Research and collate your list of potential partners
You have a clear vision for what you need from a software company and have thoroughly documented your requirements. This preparation will make it significantly easier to identify companies that are well-suited to meet your needs. So, how do we go about finding a software development company?
- Search Engines: With just a click, Google can reveal the top software development companies.
- Listing Sites: Platforms like Clutch and GoodFirms feature companies from around the globe, allowing you to filter them by ratings, reviews, and other criteria to find the ideal match.
- Top List Blogs: While Clutch, GoodFirms, and Google provide extensive results that can be overwhelming, top-listing blogs offer concise and informative options based on location, industry, and other factors. For example: Top SAP consultant 2024 on Clutch, Top Software Development Companies 2024 on GoodFirms
- LinkedIn: This rapidly growing platform is excellent for finding software development partners. You can explore their social presence, understand their company culture, learn about their team members, and communicate directly with them.
1.2. Make the first research by looking through their references
Assuming you’ve identified 10 to 20 companies in the initial step, the next move is to review their previous clients and the types of projects they’ve handled:
- It allows you to verify if they have completed projects similar to what you need.
- It evaluates the company’s experience level.
- It helps you gauge the extent of the company’s past work and their ability to manage your task.
You can typically find it on their website, social media profiles, or their Clutch profile. We advise against reaching out to their teams during this initial screening, as sales teams can sometimes be overly persistent. Additionally, it’s not practical to engage with 15 to 20 companies simultaneously. After completing this step, aim to narrow down your list to around 10 companies, or even 5 if possible.
Tips: Clutch is an excellent platform for finding a partner. It provides everything you need, from location, language, and working hours to tech stack, client reviews, and price range, all without needing to speak to a sales representative.
1.3. Evaluate & Compare the Chosen Consultants
When choosing consultants, it’s crucial to evaluate their suitability for your requirements. Essentially, determine if they meet your criteria.
Remember that acquiring relevant information for comparison, including services provided, fees, development strategies, and application technologies, may not be simple online. The best way forward is to contact them directly to request detailed information about their services.
Tips: However, this information is not readily available on the Internet. At this stage, it is advisable to reach out to them for a portfolio and a detailed description.
1.4. Arrange a meeting for a more in-depth analysis
Most software development companies will encourage you to schedule a meeting (either in person or online) following a few initial conversations. This approach makes discussions more straightforward.
The consultant will probably seek to understand your requirements and the project scope more clearly. They will ask numerous questions about it. Ensure that you develop a clear approach and share any ideas you have.
Additionally, you should gather information about their work process, engagement models, estimated costs, technology stack, communication methods, and team culture.
- If the vendor does not meet your needs, politely decline and conclude the conversation.
- If they do meet your needs, proceed by asking them to submit a proposal with a suggested solution and estimated price.
1.5. Assess their proposed solution
- The selected technologies and frameworks: Discover the reasons behind their recommendations for these programming languages, technologies, and frameworks for your project.
- The operational approaches: Numerous software development methodologies are available for use. Each one can influence the project’s progress, cost, outcome quality, adherence to timelines, your level of involvement, and communication with your partner.
- Team Structure: How many individuals will be involved in your project? The makeup of the team will influence both the cost and the pace of the work. Identify their specific responsibilities and ensure that all necessary roles are filled.
- The collaboration model: This will determine the management approach and the roles of each party involved. You should select the most effective strategy to supervise and co-manage the project remotely.
- Price: While the price might exceed your budget, the suggested solution could be superior to other options. Additionally, a lower price doesn’t necessarily equate to lower quality. It’s crucial to strike a balance between quality and expense to stay within your financial limits.
1.6. The ultimate choice: Weighing cost against quality
It’s clear that cost doesn’t necessarily reflect quality. Lower prices don’t always equate to a better deal. Even well-known brands can experience projects that go over budget and fail. Delays, unexpected expenses, lack of transparency, and other risks associated with outsourcing can occur, no matter the brand or price.
Tips: Exercise caution when making estimates. The further out the project timeline, the less reliable the predictions become. It’s common for costs to exceed the budget, while falling under budget is unusual. I recommend setting aside an extra 10-25% as a contingency to ensure you’re prepared for any surprises. For instance, if the project is projected to last 10 months, planning for an additional 2 months as a buffer is wise.
1.7. Sign the contract
The crucial first step before initiating a partnership is to draft and finalize a contract. This software outsourcing agreement will contain essential details. Additionally, ensure that all discussions with the chosen vendor are thoroughly completed before the contract is signed. To prevent any misunderstandings or miscommunications during the development phase, it’s vital that both parties fully understand and agree on all terms.
2. Some Tips to avoid the pitfalls during selection process
2.1. Exercise Caution When Choosing Partners
- Your likelihood of finding a reliable software development partner will improve by considering the following points during your evaluation:
- Avoid partnering with companies that are significantly larger than your own.
- Be skeptical of partners who offer services at extremely low or one-time-only prices. Affordable does not mean cheap. Services that are too cheap may compromise on quality and lack the expertise needed for your project.
- Steer clear of partners who claim to specialize in every technology. A partner who advertises themselves as a jack of all trades may lack true expertise in any one area.
- Be wary of partners with poorly designed websites, generic testimonials, and vague portfolios. These signs could indicate that the company is not as experienced as they claim to be.
2.2. Evaluate their longevity in the industry
If a development company has been operating for several years and remains in business, it indicates there is a demand for their services, which can be reassuring.
However, the fact that an agency is new does not necessarily mean it is subpar. Assessing the quality of their software development outsourcing requires a more nuanced approach. If you’re considering a new agency, try Googling the founder’s name. If the founder is well-regarded and has extensive experience in the industry, that is a positive sign.
2.3. Create a detailed request for proposal
Hurrying through this process can lead to misunderstandings and selecting an unsuitable partner. Take the time to develop this document clearly and accurately, ensuring that your potential partner comprehends your needs and can offer an appropriate solution.
2.4. Avoid being lured by low prices and focus on negotiation
While price plays a crucial role in choosing a development partner, it shouldn’t be the sole determinant.
Rather than immediately opting for someone with a high price assuming it guarantees top quality, or someone with a low price to cut costs, it’s wiser to negotiate. This way, you can arrive at a fair price that ensures you achieve the desired outcome.
Final Thoughts
Situated in Vietnam, we are a rapidly expanding custom software development firm in the area, acknowledged by Clutch and GoodFirms!
Our goal is to be your strategic ally, handling your product development and digital transformation needs so you can concentrate on growing your business.
With an expert team boasting over 10 years of experience, collaborating with 100+ clients world wide, SPHINX offers IT outsourcing services in diverse domains, ranging from SAP, ERP & CRM solutions, Custom Software Development, Web & Mobile Apps, to Blockchain and AI. SPHINX sets a clear vision to become a leading SAP solution provider and custom software development enterprise in Southeast Asia.
CEO - Son Le
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