How to Choose a Software Development Company That Won’t Let You Down

Choosing a software development company can be overwhelming, especially if you’ve had a negative experience in the past. Once you’ve been disappointed, the idea of trusting another provider may feel daunting. The fear of wasted time, money, or another failed project seems to be too much for many. However, if you’re prepared to take that step again, this article aims to guide you through the process of making a smarter choice this time.

In this guide, you’ll find information on best practices while choosing a software development service provider, red flags, and real-life stories from our clients. 

A Quick Overview of Software Development Market

The software development outsourcing market has grown rapidly in recent years, reflecting businesses’ increasing reliance on global talent pools. 

In 2023, companies worldwide spent approximately $585.5 billion on software outsourcing, and this is projected to grow to $897.9 billion by 2031. That’s an average annual increase of about $39 billion, fueled by a steady growth rate of 5.5%. 

This trend is fueled by companies seeking cost-effective custom software development, access to specialized skills, and faster time to market. Maybe your competitors are among them, planning to launch new software products and boost their market share by increasing their investment each year.

However, with such growth comes an overwhelming number of service providers, making it difficult for businesses to choose the right one. Thousands of companies offer outsourcing services worldwide, especially in regions like India, Eastern Europe, and Southeast Asia, where competitive pricing and strong technical expertise are highly valued.

Benefits of Hiring a Software Development Company

Hiring a software development company brings specialized skills, streamlined processes, and cost efficiency, enabling businesses to deliver high-quality, scalable solutions quickly and stay competitive in dynamic markets. Among the most significant benefits of hiring a software development company are:

• Cost savings: Outsourcing can reduce development costs by as much as 70% due to lower labor costs in key regions.
• Access to talent: Outsourcing offers access to highly skilled developers worldwide, without the limitations of local hiring.
• Focus on business goals: Outsourcing allows businesses to focus on their core operations while the development team handles the technical side.

Outsourcing continues to be a strategic choice for companies aiming to innovate while optimizing costs and development timelines.

How to Choose the Right Software Development Company: 9 Best Practices

Finding and selecting the right software development company can make or break your project. According to a 2022 survey conducted by MobiDev among our existing and potential clients (48 respondents), recommendations, LinkedIn networks and Google search are the leading ways for finding a development team, with platforms such as Upwork, Clutch and others being used more frequently.  

Around 80% of the respondents chose technology expertise as the key factor in their selection. Additionally, 63% of respondents highlighted pricing policy as important, while only 15% considered time zone differences and having a local sales office as essential factors. Around 70% of respondents selected ease of working with the vendor as an important factor. 

So, what to pay attention to while planning to work with a software company? To ensure that the company is a reliable and capable provider, there are several best practices to follow when evaluating potential candidates.

1. Evaluate the project portfolio

   The first step in assessing any software development company is reviewing its project portfolio. This gives you a clear idea of their expertise, style, and experience. A diverse portfolio, especially the one featuring projects similar to yours, indicates the company’s ability to handle different challenges and deliver high-quality results. Check for industry-specific experience to see how well they understand the unique demands of your field.

2. Check out client testimonials and case studies

   Client testimonials and case studies provide insights into the company’s working relationship, their ability to meet deadlines and the overall quality of their work. Look for detailed case studies that explain the challenges faced and how the company approached the solution.

3. Pay attention to referrals and recommendations

   Ask for referrals from their past clients. Speaking directly with companies who have worked with your potential provider can offer a clearer picture of their communication style, adherence to timelines, and any challenges they may have faced during development. Honest, unbiased feedback will help you avoid making the same mistakes.

4. Assess communication and collaboration skills

   Clear and consistent communication is key to the success of any project. Evaluate how responsive the team is during initial consultations, whether they ask insightful questions, and if they demonstrate a strong interest in understanding your business needs. This shows whether they adopt a consultative approach rather than just following directives. Companies that invest time in understanding your business are more likely to deliver tech solutions that truly support your objectives.

5. Pay attention to critical thinking and problem-solving

   Look for a development service provider that doesn’t just follow instructions but can also critically evaluate your requirements. The best companies act as problem solvers, ensuring that the solutions they build are not only functional but also aligned with your strategic goals.

   For example, if you’re developing an eCommerce platform, the team should suggest features that enhance user experience and drive sales, not just meet the basic functionality.

6. Assess company size and flexibility

   While larger companies might offer a broad skill set and resources, smaller firms often deliver more personalized service and greater flexibility. Consider the company size relative to your project’s needs. A smaller company may be more agile and responsive, whereas a larger firm might offer more stability and a wider range of expertise.

7. Security protocols are a key

   In today’s digital world, security cannot be overlooked. Check what security measures the company has in place, including compliance with data privacy regulations like GDPR or HIPAA if necessary. Ensure they employ the best practices for secure software development, such as regular code reviews and security audits.

8. Ask about the development process and methodology

   Understanding the company’s software development process and methodology (such as Agile or Waterfall) will help you determine how adaptable they are to change, how often you’ll receive updates, and how involved you can be during the development. A well-defined process helps ensure that the project stays on track and delivers timely results.

9. Consider intellectual property rights

   Ensure the contract outlines who will own the final product, the source code, and any related intellectual property. You want to make sure that you retain full ownership of the project upon completion, so it’s essential to clarify software IP rights protection before development begins.

Overall, you must look at their track record, communication skills, problem-solving approach, and how they align with your business goals. 

Questions to Ask When Hiring a Custom Software Development Company

When hiring for the first time or switching to a new development team, asking the right questions is crucial to ensure you’re making the best choice for your project. Below are some essential questions to ask, along with examples of how MobiDev handles these aspects to give you an idea of what to expect.

1. Will there be a specific contact person?

This is important for streamlined communication and project management.

MobiDev’s approach: At MobiDev, we assign a dedicated Account Manager to each project. This person acts as a central point of contact, facilitating smooth and clear communication between you and the development team. This ensures transparency and quick resolution of any issues that may arise.

2. What experience do you have in our industry?

Industry-specific expertise can be a game changer, especially for specialized sectors like healthcare or fintech.

MobiDev’s approach: We have extensive experience across various industries, from retail  to fitness or manufacturing. Our portfolio includes diverse projects, ensuring we understand unique industry challenges and requirements.

3. What is your development process?

Understanding the company’s development methodology can help you assess how involved you can be and how flexible the process is.

MobiDev’s approach: MobiDev follows a flexible Agile development methodology, which allows for iterative development and close collaboration with clients. This approach provides regular updates and opportunities for feedback, ensuring that the product aligns with your expectations and goals throughout the process.

4. How do you ensure the security of the software?

Security is important, especially when dealing with sensitive data.

MobiDev’s approach: We follow best practices in secure software development, including regular audits, code reviews, and compliance with data protection regulations such as GDPR and HIPAA. For example, in our healthcare projects, we ensure that all patient data is encrypted and handled according to strict privacy protocols.

5. How do you handle intellectual property rights?

You need to ensure that you will own the final product, including the source code.

MobiDev’s approach: At MobiDev, we make it clear from the start that the client retains full ownership of the project, including the source code and all related intellectual property. This is written into the contract to protect your rights.

6. What is your policy on project management and reporting?

This will help you understand how often you will receive updates on the project’s progress.

MobiDev’s approach: We provide regular project updates through our Agile-based sprint cycles. Each sprint is followed by a review session where the development team presents progress, collects feedback, and discusses the next steps. This ensures that the project stays on track, and any potential issues are addressed early.

These questions, when addressed properly, provide a strong foundation for a successful collaboration with a software development company. For more insight into how MobiDev approaches software product development, you can review case studies and client testimonials to see how we’ve helped businesses like yours succeed.

Discover what our clients find valuable about working with MobiDev

10 Red Flags to Remember When Deciding on a Software Development Service Provider

When choosing a software development service provider, it’s crucial to be aware of red flags that can indicate potential problems down the road. Here are some key signs to watch out for:

1. Lack of transparency: If the company is not clear about its processes, pricing structure, or project timelines, this could mean they are hiding potential costs or delivery delays. Ensure they provide detailed, clear contracts.
2. Poor communication: If it’s difficult to reach the team, or you’re experiencing slow or incomplete responses, it’s a sign of future communication breakdowns. Effective communication is essential for keeping projects on track.
3. Limited portfolio: A small or unimpressive portfolio may suggest a lack of experience or expertise in delivering high-quality projects. Look for a track record of success in projects similar to yours. However, keep in mind that working in sensitive business domains, such as healthcare or govtech, often involves strict NDAs that limit public portfolio showcases. In such cases, you can ask for recommendations from existing clients if a company claims experience in this domain.  
4. Negative client reviews: Consistent negative feedback from previous clients can indicate underlying issues like missed deadlines, poor project management, or subpar quality work. Do thorough research into client testimonials or third-party reviews.
5. Unclear project scope: If the provider cannot define the project scope or requirements clearly, you might face issues like scope creep, which can increase costs and delay timelines. An inability to clearly outline the scope often indicates disorganization.
6. High employee turnover: Frequent team changes can disrupt project continuity, leading to inconsistencies in quality and longer delivery times. Stability within the team is essential for smooth progress.
7. No established development process: A lack of defined development methodologies, such as Agile or Scrum, might lead to chaotic project management. A company without a structured process often delivers inconsistent results.
8. Pressure tactics: If a company is pushing for quick decisions or rushing you into signing a contract, this can indicate a lack of confidence in their ability to deliver. Take your time to review contracts and details thoroughly.
9. Inflexibility: If the service provider is unwilling to adapt their solutions to your specific needs or is resistant to change during the project, it’s a major red flag. Flexibility is crucial for meeting evolving project requirements.
10. Overpromising results: Be wary of companies that guarantee unrealistic timelines or outcomes without a clear, achievable plan. Promising the impossible often leads to disappointment or rushed, low-quality work.

These red flags can help guide you in choosing a trustworthy and capable software development service provider. Always investigate thoroughly, ask the right questions, and review portfolios, recommendations, and proposals carefully.

5 Reasons to Hire MobiDev as a Software Development Company 

Here are five reasons to consider MobiDev as your software development service provider, addressing common red flags in the industry:

1. Global presence & strong infrastructure
   With development centers in Poland and Ukraine, MobiDev has a geographically distributed team, ensuring business continuity and flexibility. With legal entities registered in the USA, UK, and EU, our global presence helps mitigate risks associated with relying on a single location for your product development.
2. Vast experience since 2009
   Having been in business for over a decade, MobiDev brings extensive experience in various industries with a broad portfolio of successful deliveries for companies of different types, from startups to established SM enterprises. This long-term expertise ensures stable processes and seasoned engineering teams — essential for delivering successful projects.
3. In-house expertise & low employee turnover
   With an average employee tenure of 5.5 years, MobiDev’s team stability ensures that you won’t experience disruptions caused by frequent changes in team members. This contrasts with companies that have high turnover rates, which often lead to project delays or quality issues.
4. Long-term client relationships
   Over 50% of our clients have worked with MobiDev for more than 8 years. Their commitment to long-term collaboration shows that they focus on client satisfaction and value-building trust over time. Clients can expect consistency, a deep understanding of their business needs, and a proactive approach to project success.
5. Consulting + engineering approach
   MobiDev combines consulting expertise with hands-on engineering skills, providing end-to-end development tailored to your business needs. This consulting-driven approach ensures that the tech solutions they provide genuinely align with your business objectives without the risk of overpromising and underdelivering.

Check a few testimonials from our clients below: 

We tried several developers and they didn’t quite work out. We started working with MobiDev and then we actually reached the full capacity of what’s the whole Okadabooks idea could be. The design aspect was great, the project management and communication were efficient. They worked with us even though we’re working between three different time zones. 

Ofili Okechukwu

CEO, Okadabook

Read more about the project:

Designing an Award-Winning Digital Content Platform

Read more about the project:

AR Consulting & Development For Home Renovation Software Product

MobiDev understands the frustration of working with unreliable providers and offers clear, transparent communication and processes to ensure you’re never left in the dark. This approach helps businesses that have faced setbacks with previous developers regain confidence and move forward successfully.