How to Choose a Software Development Company

Cover image
Written by
Scrums.com Editorial Team
Published on
August 8, 2025

Introduction: Why the Right Choice Makes All the Difference

Choosing a software development company isn’t just a box-checking exercise—it’s a decision that can make or break your project, productivity, and even your company’s growth curve. Whether you’re developing a mobile app, refactoring legacy systems, or launching an ambitious AI-powered platform, the stakes are high. The right partner delivers on time, on budget, and with expertise; the wrong one? Well, let’s just say you don’t want that story for your next leadership meeting.

 

We at Scrums.com might be a little biased about being your optimal choice—after all, building outstanding products is kind of our thing—but more on that later (you’ll see why).

 

Defining Your Needs

Before you even open LinkedIn or start Googling “best software development company,” get clear on your project’s heart and soul. According to the Standish Group’s CHAOS Report, most software project failures stem from issues like incomplete requirements, lack of user involvement, and misalignment between teams—rather than technical concerns like the chosen tech stack. Here’s how you can get clear on your project's heart and soul:

Ask yourself:

  • What problems are we solving? (Web platform, Mobile App, Enterprise Software, AI Integration, etc.)
  • What’s our “must-have” vs. “nice-to-have”?
  • Budget boundaries—or how far you’re willing to stretch for value.
  • Is speed of delivery the main driver, or do you want deep technical expertise?

Pro tip: Companies that ask detailed discovery questions upfront are usually more invested in your outcome (not just your invoice).

 

Company Types & Service Models

The vendor landscape is wild—let’s tame it:

  1. Boutique/Custom Software Companies:
    Niche expertise, more attention to detail, often pricier but higher quality.
  2. Large Agencies/Traditional Consultancies:
    Broad resources, big portfolios, but sometimes “one size fits all.”
  3. Freelancers & Micro-agencies:
    Budget-friendly; best for very well-scoped, smaller projects.
  4. Nearshore/Offshore Teams:
    Cost savings & round-the-clock talent, but vet for process rigor and communication.

At Scrums.com, we combine global agility with nearshore flexibility and the process rigor of top-tier boutiques—making us a trusted partner for complex, high-growth projects.

 

“Scrums.com’s flexibility has been a game-changer—adapting as our business needs changed."
—Ikue

How to Vet Companies (and Avoid Bad Outsourcing Horror Stories)

You deserve a company that walks the talk—not just a slick website and a slideshow.

Checklist:

  • Inspect their portfolio (case studies for both success and failure, if possible).
  • Ask for client references—and actually call them.
  • Review their process (Not just “we’re agile”—prove it!).
  • Assess culture fit and transparency—do you trust their team to tell you bad news fast?
  • Understand their talent: Are devs in-house, remote, or subcontracted?

If any company brags they’ve “never missed a deadline,” they’re either magical or not telling the whole story. Learn more about choosing the right custom software development company for your project.

 

For a broader perspective on the custom software development landscape, we recommend checking out Gartner Peer Insights for Custom Software Development Services. This resource features reviews and ratings from real-world clients, helping buyers benchmark providers and navigate the crowded market—even beyond the companies you may have on your shortlist.

 

Vendor Vetting Checklist

Process & Methodology

Want to avoid endless delays? Dig into their delivery process:

  • What project management style do they use? (Agile development, Kanban, Scrum, Waterfall…)
  • How will they handle requirement changes, revisions, or pivots?
  • Do they have proven onboarding, QA, and handover checklists?
  • What tools do they use (and will your team get visibility)?

Radical transparency is a must—at Scrums.com, clients watch live sprint progress, blocker reports, and QA dashboards. Always ask your short-listed vendors how they ensure visibility.

 

“Scrums.com’s proactive approach and clear communication ensured our project’s success. They consistently delivered enhancements beyond our expectations.”
—Volkswagen Financial Services

Security, Compliance & Risk

Critical but often skipped! Don’t let your IP or user data wind up in a breach headline.

  • What are their secure coding practices? (e.g., OWASP standards)
  • Do they run regular security audits/patching?
  • Are they experienced in compliance for your industry (GDPR, HIPAA, PCI, POPIA, etc.)?
  • How do they manage cloud credentials and sensitive data?
  • What’s their incident response plan?

Scrums.com has delivered platforms for fintech, health, and telco, providing compliance documentation as needed.

 

Measuring Success

How will you know your new partner is crushing it (or falling behind)?

  • What KPIs or milestones matter most to you? (Speed, cost, usability, uptime, code quality…)
  • Ask about their reporting cadence and how they surface risks (not just “good news”).
  • Can they show data/analytics dashboards or sample client reports?

Learn more about the importance of software maintenance and optimization.

 

KPI Examples for Measuring Outcomes with a Software Development Company

KPI Examples for Measuring Outcomes
KPI Name What It Measures Why It Matters
% Milestones Delivered on Schedule Tracks percentage of key project milestones completed on or before agreed dates Demonstrates the vendor's reliability, project pacing, and effective planning
Sprint Completion Rate How many planned sprints were finished as scheduled (vs. delayed/postponed) Shows consistency in delivery and transparency throughout Agile development
Post-Launch Critical Bugs (First 30/90 Days) Number of critical defects reported after go-live in key early phases Reveals product quality, thoroughness of QA/testing, and risk to user experience
Change Request Rate Number of out-of-scope or unplanned modifications during project lifecycle Indicates how well initial requirements were captured and managed, and vendor adaptability
End-User Satisfaction Score Rating or feedback from actual users/customers using the delivered solution Direct insight into real-world usability, adoption, and perceived product value
Stakeholder NPS (Net Promoter Score) Internal project sponsor/stakeholder willingness to recommend the vendor Captures overall satisfaction, communication, and the partnership dynamic
Velocity Improvement (for ongoing work/process) Comparison of features delivered or story points per sprint before and after vendor engagement Measures gains in productivity when working with the vendor
Uptime/Availability (for production systems) % of time the application is available to users post-launch Essential for mission-critical systems, and reflects operational excellence

 

Post-Project Support & Maintenance

Launching is just the starting line! Ask:

  • What does support/maturity/handover look like post-launch?
  • Who’s on call for bug fixes, scaling, or any “oh wow” emergencies?
  • Is there a formal SLA, and how quickly will they respond?

At Scrums.com, we believe “project complete” is just another word for “let’s keep collaborating.”

 

Conclusion / TL;DR

Your choice of a software development company will ripple through your roadmap, revenues, and even your team’s sanity. Vet carefully, ask tough questions, demand proof of process—and don’t shy away from partners who proactively offer ideas to grow and protect your business.

 

Final word:

We may be engineers, but we’re also human—Scrums.com is as obsessed with your wins as you are. Sure, we’re a bit biased, but if you want a partner, not just a vendor… Well, you know where to click.

 

What To Do Next

Ready to level up your digital products with a team you actually enjoy working with?

Book a discovery call with Scrums.com—or read about how we help companies develop software that drives business growth.

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