What to look for in a software development company, the questions to ask, red flags to avoid and how to compare proposals before you commit.
In this article
To choose a software development partner, define what you need first, shortlist a few suppliers with relevant experience, and then test them with specific questions about how they plan, communicate, test, secure and support their work. Ask to speak with past clients, check that you will own what is built, and compare proposals on scope and approach as well as price. The best partner is rarely the cheapest or the biggest. It is the one who understands your problem, tells you honest things when they are uncomfortable, and will still be available to support the software after launch.
Before you start looking
Good partners cannot rescue a project that nobody has defined. Spend a little time on your own side first:
- Write a one-page brief: the problem, the users, the main outcomes you want, key integrations and any deadlines.
- Decide your rough budget range and who has authority to approve it.
- Name one person on your side who will be the day-to-day contact.
- List constraints: data protection needs, existing systems, preferred hosting.
If you are still working out the scope, read how to plan a custom software project first, and consider whether off-the-shelf software might already meet the need.
What to evaluate
| Area | What good looks like |
|---|---|
| Relevant experience | Has built systems of a similar kind and can explain the lessons, not just show screenshots |
| Understanding of your business | Asks searching questions about your process before quoting |
| Process | Clear stages from requirements to deployment, with visible progress |
| Communication | Named contact, agreed cadence, plain language, quick answers |
| Technical approach | Explains choices and trade-offs; uses mainstream, well-supported technology |
| Quality and testing | Automated testing and review are normal, not extras |
| Security and data protection | Treats security as part of design; understands GDPR obligations |
| Support after launch | Offers maintenance and a clear way to report issues |
| Commercial terms | Transparent pricing, clear ownership, sensible exit terms |
Questions to ask a software development company
About their work
- Which projects have you delivered that are most similar to ours, and what went wrong on them?
- Can we speak to one or two past clients?
- Who exactly would work on our project, and will they be there throughout?
About process and communication
- How do you gather and document requirements?
- How will we see progress: demos, a task board, reports? How often?
- How do you handle changes to scope, and how are they priced?
- What do you need from us, and how quickly?
About quality and security
- What testing do you do, and is it automated? (See software testing types explained.)
- How do you release software? Do you use automated pipelines? (See what CI/CD is.)
- How do you handle security, access to our data and personal data under GDPR?
- How is the code reviewed and documented?
About commercial terms and the long term
- Who owns the source code and intellectual property on payment?
- What happens if we want to move to another supplier? Will we get the code, documentation and environment access?
- What support and maintenance do you offer after launch, and how is it priced?
- What are the main risks you see in our project?
The last question is a good test. A partner who says there are no risks is either inexperienced or not being straight with you.
How to compare proposals
Put proposals side by side and check:
- Scope: is it clear what is included and excluded? A cheaper proposal may simply leave things out.
- Assumptions: does it state what the estimate depends on?
- Approach: does it show understanding of your problem, or is it a template with your name inserted?
- Timeline and milestones: are there checkpoints where you can see working results?
- Team and responsibilities: including what you must provide.
- Pricing model: fixed, time and materials, or a hybrid, and how overruns are handled.
- Warranty and support: what happens to bugs found after launch.
If quotes differ by a large amount, ask each supplier to explain their assumptions. Often the difference reveals a genuine misunderstanding that is better caught now.
Contract points to get right
- Intellectual property and source code ownership.
- Acceptance criteria and how acceptance happens.
- Payment tied to milestones rather than all upfront.
- Confidentiality and data processing terms, including a data processing agreement where personal data is involved.
- Change control procedure.
- Termination and handover provisions.
Have a solicitor review the contract. This article is general information and not legal advice.
Red flags
- A firm price without asking any questions about your needs.
- Pressure to sign quickly or a discount that expires tomorrow.
- Reluctance to put ownership, handover or pricing in writing.
- No references, or references that cannot be contacted.
- Vague answers on testing, security or support.
- Promises that sound too good: everything included, no risks, done in half the time.
- Developers who are never introduced, or a different team from the one that pitched.
- Reliance on obscure or proprietary technology that only they can maintain.
Consider a small paid pilot
If the stakes are high, start with a short, paid discovery phase or a small first release. You learn how the team communicates and delivers at low risk, and you end up with a requirements document and plan you own, whichever supplier you go on with.
Common mistakes
- Choosing on price alone. Cheap and cheerful can turn costly if it needs redoing.
- Choosing on a polished pitch. Check delivery evidence, not just presentation.
- Handing over a vague brief and expecting miracles. The partner can only be as good as the clarity you give them.
- Not planning for life after launch. Hosting, updates and support continue for years.
- Being a hands-off client. Projects go better when someone on your side is engaged and decides quickly.
- Skipping the legal review. Ownership disputes are very hard to fix after the fact.
A simple scorecard
When you have two or three serious candidates, a scorecard helps keep the decision rational and lets several people on your side compare notes. Give each supplier a score from one to five on the following, weighting the ones that matter most to you:
- Understanding of our problem, shown in their questions and proposal.
- Relevant experience and quality of references.
- Clarity of process and communication.
- Technical approach and its reasoning.
- Testing, security and data protection practice.
- Support and maintenance arrangements.
- Commercial clarity: price, ownership and exit terms.
- Our gut feeling about working with them day to day.
The last item is legitimate. A long project depends on people working well together, and trust matters. Use the scorecard to challenge your instinct, not replace it. If your favourite scores poorly on something important, ask them about it directly before you decide.
Quick summary
- Prepare a clear brief and name your decision-maker before approaching suppliers.
- Test candidates with specific questions on process, testing, security, ownership and support.
- Compare proposals on scope and assumptions, not only price.
- Get ownership, handover and payment terms in writing, reviewed by a solicitor.
- Consider a small paid pilot before a large commitment.
Need a sounding board?
If you are comparing suppliers, or want a neutral view on a proposal you have received, our IT consulting and support service covers strategy planning, risk management and long-term technology support. And if you are ready to discuss a build, we would be glad to hear about it through our custom software development service. Tell us what you are trying to achieve and we will say honestly whether and how we can help.
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General educational information, not legal or professional advice for your specific situation.
