How To Choose a Software Development Company (2023 Guide)

Software Development
How To Choose a Software Development Company (2023 Guide)
Article by Sumana Ganguly
Last Updated: December 09, 2022

Businesses, both large and small, have seen the importance of integrating digital solutions into their daily operations. In 2022, 98% of small businesses had a website, an increase from 71% in 2021.

Moreover, when it comes to websites, it's not just about having one—performance is essential, too. Partnering with the best tech support companies for optimal results has become more crucial now than ever. 

This highlights the importance of knowing how to choose a software development company that meets your business needs, and we'll help you find them!

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What Does a Software Development Company Do?

The job of a software development company includes designing, developing, programming, testing, documenting, and bug-fixing software and applications for businesses. After releasing the product, a software development company may also be responsible for ongoing maintenance and support to maintain the product's optimal functionality.

Each company has its unique development methodology and process for working with clients, so it's important to know the specifics before signing a contract.

Steps on How to Choose a Custom Software Development Company

The custom software development market was valued at $24.46 billion in 2021. With so many agencies in the US alone, it can be a daunting task to find a software development company that fits the needs of your business.

You're investing your time and resources into the project, so you'd naturally want to work with the best. It may take time, but it'll be worth it once you learn how to choose a software development company that understands your goals.

1. Determine Objectives and Timeframe

This is the first and arguably most important step if you want to learn how to choose a software development company effectively. Having a clear idea of your goals and what you want to build will help reduce wasted time and resources.

You don't need to iron out all the details at this point, but you do need to have a decent outline of your objectives and timeframe. Start with a list of requirements, workflows, or mockups. You can also determine what technical skills you need your software developers to have.

2. Make a List of Potential Companies

After outlining what you want to build and achieve, you can start building your list of potential candidates to work with. You can search Google for the top software development companies and visit individual company websites, where you'll find out what industries they work with and what their work processes are.

You can also find more information about a company on review websites, such as Clutch. Here is some information you should look out for:

  • Company size
  • Company strategy
  • Company structure
  • Average rates
  • Business practices
  • Available services
  • Experience and familiarity with similar projects

Once you've built a decent list of potential software development companies, you can begin reaching out. Ask for a brochure or portfolio to gain vital information about them.

3. Check Their Credentials and Portfolio

Doing this will help you narrow down the companies on your list. Sources for this information include company brochures and portfolios, customer reviews, and company review websites.

Reviewing a company's portfolio allows you to see if they have participated in a similar project to ensure a seamless project workflow. In understanding how to choose a custom software development company, you should also keep in mind that your outsourcing partner should not only be an expert in their field, but they should also understand the nuances of the industry you're in.

You should also find out if they've done projects of a similar scale to see if they can handle yours with fewer hiccups. Ask them to give you an outline of previous relevant projects, their development process, and how it benefited the clients.

4. Make Sure They Fit Your Business Needs

In learning how to choose a software development company, you should keep in mind that this process goes beyond product functionality. You need them to fully understand what you need and be truly aligned with your goals so that they can make good decisions that will benefit your business.

In this regard, you may want to avoid companies that claim to be an expert on everything because, chances are, they're not. You should look for companies that are experts in the software development tools your company uses. For example, if you need your software to be built on Python, look for companies that focus on that.

5. Clarify Their Development Methodology

What software development methodology does the company utilize, and does it align with your goals? Ironing out this detail will improve efficiency, ensure the proper execution of the project, and prepare the team for any challenges that may come along.

A suitable development methodology should include effective communication tools, timely delivery, frequent updates, flexible budgeting, and adaptive planning.

6. Ask About Their Security Practices

Considering that about 2,200 cyberattacks occur daily, clarifying security measures is an important step in choosing a software development company for your business.

Since you'll work closely with the company, they'll handle sensitive information. You have the right to know how this information is being kept to maintain its confidentiality. Are their security practices adequate for your needs? If not, what additional measures have to be adopted?

Get connected with the right software development agency for your project.

7. Be Clear on After-Development Support

Any reputable software development company offers post-development support like maintenance and backups. You should ask about the extent of support provided and how long these services will be rendered.

Moreover, you should double-check that these things are included in the contract. Iron out the details before committing to any company. You don't want to be done with the project only to find out that no support will be provided or that you'll have to pay unexpected maintenance bills to get the software fixed.

Mistakes to Avoid When Choosing a Software Development Company

In addition to knowing the proper steps on how to choose a custom software development company for your business, you should also be wary of the common mistakes other businesses make so you don't replicate them.

The back-end work involved before the development process begins is crucial to the project's overall success.

Choosing the Cheapest Option

Nearly 70% of companies who outsource do so to cut costs. While this is a valid aspect of outsourcing, this shouldn't be the sole focus. Searching for cost-effective options is important in discovering how to choose a software development company, but not if it compromises quality.

In fact, a company that offers ridiculously cheap services likely doesn't understand the complexity of the project at hand. That's why you should also assess important areas like relevant experience, knowledge of the latest technologies, and maintaining effective communication.

Not Involving a Tech-Savvy Manager

Building exceptional software requires a team led by a tech-savvy captain who can ensure that the desired results are achieved. You can hire a tech-savvy project manager or CTO to manage the project through its entire life cycle from your end.

If your project manager isn't well-averse to software development, they may not be able to communicate your goals with the team clearly. As a result, this will delay the process and negatively impact quality.

Focusing Only on Local Companies

One of the biggest advantages of outsourcing software development is that you can access top talent from around the world. If businesses focus only on hiring companies within their vicinity, they miss out on the value that offshore companies can provide.

The Benefits of Choosing a Software Development Company That Suits Your Needs

Digitizing your business can mean lower operational costs, higher revenue and productivity, streamlined processes, better customer support, and improved employee morale.

For example, in the lending industry, loan management systems help lenders process more loans with little to no errors by automating specific steps of the loan application process. This results in increased revenue and allows employees to focus on more crucial parts of the business that require human attention.

Outsourcing your software development needs has its upsides.

Reduced Costs

Having an in-house team for software development can be costly. You pay more than their wages; you pay for their benefits and holidays as well.

When you outsource to an agency, you significantly reduce your software development costs since you can offload some of it to another company. Somebody else—in this case, the agency—will be responsible for paying for the benefits and holiday packages.

Increased Flexibility

Many variables affect the length and cost of a software development project. Having the flexibility to scale the project to fit your needs and budget is so underrated. When working with software development agencies, you can add or remove members to suit the needs of your project.

A software development agency can also maximize resources by considering your budget, company size, and goals when planning for the project. This is one of the most rewarding yet overlooked benefits of hiring a software development company.

Saved Time

Aside from saving money, outsourcing your software development projects also helps you save time. The average hiring process in the US lasts around 23.8 days. With outsourced teams, the hiring is already done by someone else.

You no longer have to spend countless hours reviewing CVs, calling candidates, and arranging interviews, all in the hope of onboarding the right person for the job. Now, you can just enjoy the benefits and spend a minimal amount of time.

Focusing on Core Business Operations

Having the privilege to focus on what your business is truly about is the icing on the cake. This is what outsourcing your software development can do, particularly for small businesses where owners tend to do everything themselves. You can focus more on improving your business since nothing distracts you from your ideas.

The Best Software Development Companies To Trust in 2023

1. Altoros Labs

  • Location: 2827 Avenida Federico Lacroze, Buenos Aires, C1426, Argentina
  • Average Hourly Rate: $50/hr
  • Expertise: Software Development, Software Testing, Enterprise Software Development, Mobile App Development...

With over 20 years of experience, Altoros is a trusted enterprise development consultancy for Global 2000 organizations seeking expert support for digital transformation.

From technology stack selection to complex development and legacy systems modernization, Altoros has the skills and expertise to help your business thrive in the digital age. They specialize in creating customized software solutions for mobile banking, accounting, financial planning, insurance, and more.

Trusted for their results-oriented development and technical expertise, Altoros has worked with prominent names in the industry, including Samsung, Toyota, Hitachi and Siemens.

2. Radency

  • Location: Khimichna St., Lviv, 79000, Ukraine
  • Average Hourly Rate: $42
  • Expertise: Mobile App Development, Product Design, UI/UX Design, Software Development, Outsourcing Software Development, Fintech Software Development...

Radency builds an expert team around each project. The team is solely dedicated to one product and works directly with a client. Working with their engineers is exactly the same as working with your own team: direct communication, full accountability, transparency, and shared goals.

With their agile process, you’ll see progress earlier, collaborate with our team tightly, achieve a quick time to market, and enjoy high development ROI.

3. Intetics

  • Location: 10001 Tamiami Trail N, Suite 114, Naples, Florida 34108, United States
  • Average Hourly Rate: $50
  • Expertise: Real Estate Software Development, Offshore Software Development, Educational Software Development, Software Development...

Based on proprietary pioneering business models of Offshore Dedicated Team® and Remote In-Sourcing®, an advanced Technical Debt Reduction Platform (TETRA™), and measurable SLAs for software engineering, Intetics helps innovative organizations capitalize on global talent with in-depth engineering expertise based on Predictive Software Engineering framework.

Intetics' core strength lies in the design of software products in conditions of incomplete specifications. They have extensive industry expertise in Education, Healthcare, Logistics, Life Sciences, Finance, Insurance, Communications, and custom ERP, CRM, Intelligent Automation, and Geospatial solutions.

4. Intetics

  • Location: 10001 Tamiami Trail N, Suite 114, Naples, Florida 34108, United States
  • Average Hourly Rate: $50
  • Expertise: Offshore Software Development, eCommerce Development, Real Estate Software Development, Educational Software Development...

Based on proprietary pioneering business models of Offshore Dedicated Team® and Remote In-Sourcing®, an advanced Technical Debt Reduction Platform (TETRA™), and measurable SLAs for software engineering, Intetics helps innovative organizations capitalize on global talent with our in-depth engineering expertise based on our Predictive Software Engineering framework.

Intetics' core strength lies in the design of software products in conditions of incomplete specifications. We have extensive industry expertise in Education, Healthcare, Logistics, Life Sciences, Finance, Insurance, Communications, and custom ERP, CRM, Intelligent Automation, and Geospatial solutions.

Our advanced software engineering background and outstanding quality management platform, along with an unparalleled methodology for talent acquisition, team building, and talent retention, guarantee that our clients receive exceptional results for their projects. At Intetics, our outcomes do not just meet clients' expectations, they have been exceeding them for a quarter of a century.


  • Location: 73 Heroiv UPA str., building 10, Lviv, 79041, Ukraine
  • Average Hourly Rate: $35
  • Expertise: Software Development, Outsourcing Software Development, UI/UX Design, Web Design

ElifTech is an ambitious and trusted global technology service company that designs, builds and implements effective software technology solutions supplying the needs of your business.

They cover all aspects of software product development using the latest technologies and frameworks, and quickly adjust to customer’s demands. Their approach combines research, design, and development to rapidly solve problems, create and test prototypes and launch a product into the market in an iterative way. They create intelligent applications that connect people, systems, devices, and data.

6. RNDpoint LTD

  • Location: UK 128 Kemp House, City Road, London, EC1V 2NX, United Kingdom
  • Average Hourly Rate: $49
  • Expertise: Software Development, Node.js Development, Enterprise Software Development, Fintech Software Development...

RNDpoint is a global FinTech development services provider. They are a trusted partner of FinTech SMBs and startups, delivering full-cycle assistance with innovative finance projects. Their experts possess in-depth domain-specific expertise, enabling them to lead clients through the FinTech startup pipeline without friction and with fewer risks.

7. Bigscal Technologies Pvt. Ltd.

  • Location: 1st Floor, B Millenium Point, Opp. Gabani Kidney Hospital, Lal Darwaja Station Rd,, Surat, 395003, India
  • Average Hourly Rate: $30
  • Expertise: Software Development, Offshore Software Development, Outsourcing Software Development, Node.js Development...

Bigscal is a offshore software development company that specializes in affordable custom software development and software solutions for business. Mobile app developement, SaaS systems, sophisticated web portals, applications, and business processes automation are offered to the customers worldwide.

Their software development center is prime for turning clients' IT vision into reality. Backed by nearly a decade of working with the international networking industry, and with clients from the United States and all over the European Union and Australia they are well equipped to work with clients in attaining their business goals, regardless of industry. 

8. NEX Softsys

  • Location: 477 Madison Avenue, 6th floor NEW YORK - 10022, New York City, New York 10022, United States
  • Average Hourly Rate: $25
  • Expertise: Software Development, Java Development...

NEX Softsys has been offering several digital services and web development services since 2003. They are an award-wining software development company and have completed a lot of projects within the due date. They have our offices in different parts in the world, including USA, India, and Canada.

9. Startbit IT Solutions Pvt. Ltd.

  • Location: C-6/82, Sector 6, Chitrakoot, Vaishali Nagar, Jaipur, 302021, India
  • Average Hourly Rate: $25
  • Expertise: Small Business eCommerce Development, Software Development, Enterprise Software Development, Web Design...

Startbit IT Solutions Pvt. Ltd. an ISO 9001 and 27001 certified company, is a Global IT Services provider company with expertise in outsourced product development and custom software development focusing on web app development, mobile app development, and tailor-made solutions, etc. They consistently deliver offshore outsourcing solutions, quality software products, and solutions to start-ups, mid-size and large enterprises worldwide.

The agency has 1400+ satisfied clients worldwide and develops web, windows, and mobile applications using all the latest technologies i.e. Microsoft Technologies (ASP.Net, C#, VB.Net, Azure, Entity/MVC framework, SSRS, Crystal Reports, etc.), MEAN Stack, Front-end, PHP, Laravel, React, MERN, WordPress, CodeIgniter, Shopify, Ruby on Rails, Android Development, iPhone development, Hybrid mobile app, etc.

10. RootQuotient

  • Location: 177, Jameson Avenue, Downtown, Ontario, Toronto, M6K 2Y7, Canada
  • Average Hourly Rate: $40
  • Expertise: Educational Software Development, Mobile App Development, Blockchain Development...

The vision of the company is to be the pioneer in digital strategy, consulting & implementation in Industry 4.0, with their core area of focus in the following.

  • Web & Mobile
  • Machine Learning
  • Blockchain
  • Internet of Things (IoT)

Their services:

11. SoluteLabs

  • Location: A1-104, Palladium, Corporate Road, Behind Divya Bhaskar, Prahlad Nagar, Ahmedabad, 380015, India
  • Average Hourly Rate: Inquire
  • Expertise: Software Development, Mobile App Development, Healthcare Software Development...

SoluteLabs is a high-performance team focused on mobile and web design and development; they have produced top #10 chart-topping applications on Android and iOS app stores, graphics that have gone viral and applications with Millions of downloads.

They understand clients' needs and walk an extra mile; clients recommend them for their thorough understanding, communication, ownership of the work, quality and adherence to timelines. Clients are located in the USA, East/North Europe, Australia and other parts of the world.

12. LiftUp Solutions

  • Location: Remote, Austin, Texas 78737, United States
  • Average Hourly Rate: Inquire
  • Expertise: Software Development, eCommerce Development, Mobile App Development, Website Development…

Founded in 2016, LiftUp Solutions is an international IT consultancy based in the US and Romania, specializing in digital product development and team augmentation.

The agency uses a combination of technology and recruiting expertise to empower customers to overcome the global IT skills gap and achieve their goals through the use of next-generation tech. LiftUp Solutions undergoes a meticulous process to choose talented engineers, developers, UI/UX designers and scrum masters to work as part of a client's team.

Their solutions architects offer guidance for development projects of new applications or the transition from legacy technologies to next-generation technologies such as AI, IoT and blockchain.

13. Infowind Technologies

  • Location: Remote, Austin, Texas 78737, United States
  • Average Hourly Rate: Inquire
  • Expertise: Software Development, eCommerce Development, Mobile App Development, Website Development…

Infowind Technologies is a development company based in India, focused on delivering world-class products and helping clients generate the best results through scalable technology.

The company's crafted solutions have helped clients achieve success and gain a competitive edge in their respective industries. Their services are designed to enable enterprise growth and are provided by a team of experts in various development technologies, frameworks and platforms, including PHP, Reactjs, Laravel, Shopify, Magento, Android and iOS.

Infowind has been a strategic partner to over 100 clients, from startups to small and mid-sized businesses, who have benefitted from the software solutions they deliver.

How to Choose a Software Development Company: Key Takeaways

When learning how to choose a custom software development company for your business, the primary things to consider are familiarity with the industry you're in, security practices, and after-development support.

Finding the best software development company that fits the needs of your business may be tedious, but the benefits you'll reap from it will be well worth the trouble. Let us guide you on your search for a software development company that complements your business needs and style!

We’ll find qualified software development agencies for your project, for free.
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