How to Choose a Software Development Vendor?

Businesses are constantly hunting to get the best software development provider for their in-house services. But this process of hunting the right source is not easy, you need to sieve out one from tons of companies. You can’t keep hopping from one company to another and hence if you are looking for one they should be fully equipped to offer the latest leading-edge technologies. Hence, choosing the right software development vendor needs the right plan and how do we achieve it? Well, this blog will walk you through all the points of consideration in the process of hiring a software development team. This can either be offshore outsourcing, onshore outsourcing, or could even onshore outsourcing.

For enterprises that effectively outsource custom software development, understand that determining how to select the best software development company should begin with a consideration of what are the requirements and how the outsourcing vendor will be able to help you accomplish that.

1. Align Business Needs with Service Offerings

The first and foremost check for any business owner is to understand their business objectives and form a strategy on how to achieve them. When you consider a vendor for custom software outsourcing it is imperative to check if the business demands meet the outsourcing company’s service offerings. Start with defining your software development needs and then discover if the contracted vendor can stand up to your expectations or not.

Explore deeper into the service offerings like the technology stack, tools they use, the current or latest version of the software, or framework used. If your business is looking for end-to-end development, ask for what all services their application development encompasses from front-end, UI/UX, DevOps, QA, backend services, and other application development needs. Simply comprehending the required services in end-to-end development will give the business a bigger and better picture of the vendor’s service offerings. If your needs are to employ a team of proficient developers who would take care of everything from ideation to deployment then this should be efficiently conveyed to your potential vendor.

The initial and primary step is to enlist all the customized software development needs and communicate efficiently to the vendor. In case, it is something that the vendor has not done in the past but ensures to know about practically implementing it, go ahead and ask for similar work portfolios where they have tried new technologies and have successfully implemented them. 

2. Business Portfolio Analysis

When a business is outsourcing its work to another business, it is the trust that keeps them moving. To establish trust between two businesses it is important to showcase demonstrated work and achievements. It is always advisable for businesses to see past work which could add some brownie points in selecting a vendor partner for your custom outsourcing business. Checking on the credibility of work is another perspective of looking into business portfolios. During this analysis of selecting a software outsourcing company, you can look for contributing aspects such as

  • Geographies areas covered by the agile development partner
  • Type of businesses the company has worked for like small, medium, or enterprise level
  • Offshoring experience
  • Industries they cater their business services 
  • Employee strength and business expertise
  • Customer testimonials

These are some of the essential factors which will help businesses analyze a good vendor for their custom software development needs. For more clarity on the service offering, you can contact past clients and ask them to share their experiences about how the service the quality of service and timeliness, and the track record of the development team.

3. Domain Expertise & Technology Proficiency

A shift in technology is occurring at an alarming speed and every business has to adapt to these changes. While you search for a custom software outsourcing partner, it is immensely important to consider their domain expertise and technology proficiency in mind. With countless options available in the market to sieve out the best company, you must consider their technical proficiency while deciding to outsource your work to them.

When you approach a custom software development company, they have a variety of software options available like COTS and custom to cater to your needs. If you identify their potential and area of expertise then some of the unforeseen barriers in the development phase can be easily avoided. Learn and understand your potential vendor, to which industries it offers services, and gauge from their past works whether they will be able to fulfill your requirements or not.

4. Enterprise Scalability

The flexibility of outsourcing business is one of the major aspects when you consider a custom software development company for your needs. Considering the development of tailor-made products for business is vital to support the needs of various industries and streamline most of their business workflows. Custom software development enables businesses to expand and boost profitability while focusing on the fundamentals of business. No business would ever invest in a software solution that is not scalable and sustainable in the fullness of time. Thus, during the search for a custom software development company, look for a scalable business partner who would appreciate a change in ideas as per changing technologies and would foresee the upcoming acceptability of the developed software.

5. Security and IP Policies

The developed software comes with specific user rights. In the software development industry, it is called intellectual property rights which is the heart of the software development business. Every associated property right is an asset on its own and shares ownership for the complete software development project. The laws might change based on different rules of ownership and type. For any developed software, you can always demand four types of intellectual property rights ranging from patents, copyrights, trade secrets, and trademarks. For data security, I always prefer to sign a software agreement with a custom software development firm.

When choosing a software outsourcing partner, inquire about the underlying security rights, like IP address or software user rights. If you put across this point during the vendor selection then after development disputes on the security and property rights can be settled beforehand. 

6. Hiring policies

This point of consideration in selecting a custom software development company may seem vague at first but is effective and significant. Not all companies would consider this in the recruitment process while deciding to outsource to a custom software company. The recruitment policy directly impacts the quality of work. You might be wondering how? Your requirements for software development are in the hands of the developers hired by the contracted custom software development company. So if the hiring policies are strict and they hire top software developers then high productivity and qualitative apps are guaranteed.

7. Support & Maintenance

Not all businesses are the same but some can stick to specific rules that say no special service offering after the contract is over. It is always advisable to discuss all the aspects of business initially when you decide to partner with a custom software development company. For any issues prevailing after software deployment, the contracted custom software development company should cater to all business needs for the developed software even after the contract expires. The in-house team uses the software but the expertise lies in the hands of the contracted software development company so it is necessary to provide support and maintenance services post-sales support services and maintenance services.

8. Online Reviews and References

Can you boil it down to a single company without viewing the given options? No, until you see all the options, you cannot select one company from the countless choices available. One of the essential parameters is to check online reviews and ratings from trusted websites like the clutch, design rush, tech reviewer, and similar. These websites will provide a holistic view to businesses on rates and reviews and will also testify with the client’s recommendation statements.

9. Performance Metrics

Undoubtedly, the developed application performance is the prime focus of development but meeting the performance benchmarks is equally significant. Defining KPIs and aligning them to what custom software development companies offer will be a sure-shot method to measure the performance of the business. Businesses must check whether the features and functions developed are as per the requirements or not. If a custom software development outsourcing company has developed your product, most businesses provide a live demo of developed software or application to testify and do a small Proof Of Concept (POC).

10. Software Vendor Financials

Last but very essential factor that can influence the decision of collaborating with a better custom software development company. It is the financial stature of a business that is equally important when selecting a custom software development firm. Check for the past financial records of the custom software company or else you can also check out some other aggregator websites like DesignRush. Their business should be stable with minimum debts and a progressive outlook. The financial stability of any business is extremely important while contracting with a company for business.

11. Before drilling down to one Software development vendor

Apart from budgetary reasons, the other major influential factors responsible for choosing a custom software outsourcing company are explained in this blog. Do not partner with a low-budgeted software outsourcing company just to save a few dollars, this might turn your business upside down, instead choose wisely. If the above-mentioned points are taken into account, businesses can easily screen out the best from the lot. Partnering with a reliable and high-skilled custom software service provider can help you develop a multi-functional application at an affordable cost with quality services and expected outcomes.

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


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    1. Jenny Gandhi

      Selection of any custom software provider depends on your requirements and needs. This article can be a helpful guide to select a custom software company. It mentioned all important metrics which we need to consider while selecting any provider. At last compare and evaluate all your available options.