Pitfalls to Avoid While Hiring Custom Software Development Company

By / April 13, 2017 /

Outsourcing software development is on the rise as it helps organizations to get the software development work done quickly and hassle-free. Moreover, the cost is also on a lower side as compared to in-house development in most cases. However, taking a decision on hiring an appropriate software development company is the most crucial part. Though it is not rocket science, it requires careful planning and vigilant strategic thought throughout the whole process. A wrong decision here might cost you not just money but also has a potential to land your organization in a complete mess. Here are a few pitfalls that shall be avoided while taking a decision on hiring a software development firm:

A blurred vision of the goals and objectives

Having unclear goals based on lack of through market research is the worst thing that can happen. This has a negative effect on the returns. Unclear objectives imply that the interpretation of the scope of work by the service vendor will be different and it will result in nothing but an unsuccessful implementation. Thus, it is vital to have adequate control over crucial decisions and make the service vendor take care of the rest of the non-core things. If you are still thinking about whether or not to go for custom software development, you can read our post on “One size does not fit all! Go for Custom Software Development!”

Price is not everything

Organizations which base their decision on just price offered by the vendor make a big mistake, even though it is done unintentionally. Yes, price is important but it is not the only point of consideration. Prioritizing price quotes over skills set and other important factors may prove to be a completely wrong move. The adage holds very true in this scenario “If you are throwing peanuts, you will attract only monkeys”. A lower price quote might reflect in the work later and prove to be a headache for you.

Cultural connect

Cultural connect is one of the most important yet underrated aspect when it comes to finalizing a software service provider. Gestures, vocabulary, behavior, intonations, idioms, etc. vary across the globe. These variations affect the way things are communicated and understood and thus have a direct effect on the success or failure of the project.

Not signing an NDA

A non disclosure agreement safeguards your organization against all the mess that might happen at a later stage. You would never want your idea to be copied by competitors or ending up in a dispute with the software development company. Taking a precautionary measure and signing an NDA is better than regretting at a later stage. If your idea is out of the box, you must mention to take the ownership of the product developed.

Inappropriate Contractual Terms

Drafting detailed contractual terms is important as any loose end might result in an exceeded budget or a waste of resources or unexpected contingencies playing their role. An apt contract is one that goes to the minutest details in terms of safeguarding your interest and explaining everything possible under the sun that is related to the contract between you and the service provider.

Inadequate analysis of the providers operating model

It is important for you to identify and analyze the operating model of the service provider. The foremost cause of discrepancies in the actual return on investment and the anticipated result is the lack of analysis of the operating model of the software development service provider. It is important to analyze the operating model and the drive to innovate of the shortlisted software development service providers to finalize the best amongst the list.

Impracticable expectations

Having expectations that are unrealistic often makes the organization seeking help of a software development company left with choosing a firm that is looking at the short term benefit of getting paid for the project by saying yes to everything being asked blindly. Falling in such trap is the worst thing that can happen to the organization as it only leads to wastage of time, money and resources. Thus to have your expectations met, it is crucial to detail them as far as possible and have the shortlisted software development company identify each point and agree to its fulfillment.


Understanding and avoiding these common pitfalls can help the organization in not only choosing a good software development company but also ensuring the time, effort and resources do not go waste with a wrong decision.

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