In the modern business landscape, building bespoke software has become a necessity for organisations looking to stay competitive, optimise operational processes, or embark on new ventures. When the need arises for custom software development, two primary options emerge: building an in-house team or outsourcing the project to a specialised software development company. While hiring an in-house team might appear cost-effective at first glance, it comes with several challenges, including finding the right talent, managing the team, and dealing with potential turnover risks. On the other hand, outsourcing provides the advantage of not needing to build an in-house team from scratch. However, with thousands of software development companies across the globe, each offering seemingly similar services at different price points, finding the right partner can be a daunting task.

We recently held a webinar in which we took a much deeper dive into the essential considerations for bespoke software development, which you can watch here.

Outsourcing Options: Offshoring, Nearshoring, and Onshoring

When considering outsourcing options, three common approaches emerge: Offshoring, Nearshoring, and Onshoring.

Offshoring involves engaging a company located in a distant country with a lower cost of living, resulting in potentially lower fees for services. For example, businesses in the UK might outsource to companies in India or the Philippines. While cost savings might seem appealing, offshoring comes with challenges related to communication, quality control, and financial stability. Managing teams in different time zones can lead to communication gaps, and the inability to be physically present for critical discussions can hinder project progress. Moreover, ensuring the credibility and reliability of an offshore company becomes crucial to avoid potential project failures, financial losses, or intellectual property issues.

Nearshoring is a variation of offshoring, where companies choose outsourcing partners in neighbouring countries with slightly lower rates. Although this option may reduce communication challenges, it still carries similar risks as offshoring, such as potential quality issues and uncertain financial stability.

Onshoring involves partnering with a local company or a company in a country where financial stability can be verified more easily. This option eliminates communication barriers and allows for better oversight of the project. Choosing a reliable, local company offers the advantage of having a trusted partner for the long term.

Key Factors to Consider When Choosing a Software Development Company

Reviews and Social Proof

Utilise websites like Clutch, which ranks companies based on client reviews, quality, recognition, and pricing. Positive reviews reflect a company’s ability to deliver successful projects and maintain credibility. Companies with a proven track record of satisfied clients are more likely to provide a positive experience.

Size and Ability to Deliver

The size of a software development company is crucial in determining its capacity to handle fluctuations in requirements and internal changes. Smaller firms with less than 10 developers may lack the resources to cope with unexpected challenges or staff turnover. Conversely, companies with 50 or more employees have the resources but may face financial instability due to high overheads. The ideal choice is a company with around 80 or more employees, demonstrating financial stability and the ability to manage successful projects.


Analysing a software development company’s portfolio provides insights into their expertise and commitment to delivering successful projects. A comprehensive collection of case studies demonstrates the company’s dedication to delivering quality software solutions. It is essential to assess the relevance of the case studies to your project, as well as their ability to handle projects in your industry or domain.


A company’s longevity in the market indicates its stability and reliability. A long-established company with over a decade of experience and a track record of successful project delivery is a safer choice for long-term partnerships.

Capability & Process

A large and established software development company is likely to have well-defined processes to ensure efficient project management and execution. While Agile development is preferred for its flexibility and iterative approach, it is essential to choose a company that has established processes beyond Agile to ensure successful project delivery. A reputable company should emphasise up-front planning and discovery time before the project begins to define project scope and budget accurately.

Developer Quality

A company’s developers and architects play a crucial role in the success of your project. Inquire about their skills, experience, and the company’s recruitment process. A reputable software development company will have a robust recruitment process and reject candidates that do not meet strict quality control standards.

Quality Assurance

Software development projects inevitably involve bugs. A good software development company will have a dedicated Quality Assurance (QA) department to ensure the software’s functionality, load, stress, and security meet high standards. Make sure the company emphasises its testing and QA procedures in its proposal and reviews.

Hidden Problems & Intellectual Property (IP) Ownership

Ensure the company’s policies regarding IP ownership are clear, and you retain full ownership of the software. Avoid companies that claim to have secret code libraries that “speed up” development but could create dependencies that hinder your control over the software.

Ongoing Support & Maintenance

A reputable software development company prioritises support and maintenance after the initial project is completed. Inquire about their procedures to ensure they can provide assistance when needed, whether for urgent fixes or adding new features.

Take Up References

Request references from past clients and talk to them about their experiences with the software development company. Ask all the relevant questions related to the company’s performance, communication, and adherence to project timelines and budgets.


While price is a crucial factor, it should not be the sole determinant of your decision. Focus on the company’s ability to meet your project requirements and provide reliable, high-quality services. A detailed and realistic proposal that takes all costs into account is a sign of a credible company.

To conclude…

Selecting the right software development company is a critical decision that can significantly impact your business or venture. Thoroughly evaluating factors such as credibility, capability, and reliability will help you make an informed choice. By choosing a reputable and experienced partner, you can ensure a successful collaboration and the delivery of a high-quality software solution that meets your business needs.