Key takeaways
- Software development is usually outsourced, especially by small startups
- Before looking for a development partner, finalize the project idea and define your budget and deadlines
- Criteria to focus on when choosing an agency: strong portfolio, relevant case studies, long-term experience of working with startups, reviews, media presence, employee expertise, and realistic estimations
- You should ask your future partner about the project’s timeline, budget, technology stack, and communication plans.
Why you shouldn’t hire in-house developers
Software development is usually outsourced, especially by small businesses and startups, as opposed to huge corporations. Small companies can still employ their engineers, but it won’t be cost-effective. Sometimes it can even compromise the end-product quality.
👉Here are the main pitfalls that startups face when building an in-house development team:
- Recruitment is costly. It requires a lot of time and effort to find a professional. Hiring a whole team of engineers might take months. Startups simply don’t have that much time: the market situation changes rapidly, and it’s hard to plan a release a year ahead. Moreover, in these few months, you’d have to check hundreds of resumes and conduct dozens of interviews. Alternatively — to hire a recruiter and delegate.
- It’s hard to assess qualifications of those who provide software development services if you are not an expert yourself. Business owners are not required to have a deep understanding of IT: superficial knowledge of the development process is enough when you work with an outsourced team. But once you decide to employ these engineers, you have to evaluate their skills and you need to be a developer to do so, otherwise you can run into newbies or scammers.
- Outsourced teams have their own manager while having an in-house team means you need to step in yourself or hire someone.
- A team needs time to get in sync. Even if you manage to put together a team of pros, it still takes time for them to get along. Onboarding can take up to a month or two. When people start working together for the first time, a few hitches are inevitable — and for a startup, this might mean a delay of the first release.
- Employees should have workstations: you’d have to rent an office, buy tables, chairs, and powerful computers. This is a significant cost item for a startup.
- In-house staff is entitled to a downtime allowance. The development process can stop for a while due to various technical reasons. For example, in order to fix a bug or connect a third-party service, such as a payment gateway. The downtime can take from a couple of hours to a couple of weeks. Agency developers often have multiple projects running simultaneously, but if you hire full-time employees, they will have to be paid regardless. So hiring in-house developers can end up being more expensive than working with an outsourced partner.
- Post-production support doesn’t require a team of engineers. After release, you’d have to decide what to do with your in-house developers. It doesn’t take as many people to maintain an app as it does to develop it, so you’d have to fire most of them. In the end, the time spent on recruitment and trial periods can easily outrun the time spent on the development itself: it usually takes at least two months to find a qualified engineer.
In most cases, in-house production turns out to be impractical and not worth it. And so it makes sense to look for a software development partner and to collaborate on a project basis.
Freelancer or agency: which one to choose
If you want to develop an application without hiring anyone full-time, you have two options for software development outsourcing — a development agency or a freelance developer. Let’s have a look at the differences between them.
Businesses often turn to freelancers because they usually charge less than agencies do. But nothing is perfect, there are risks involved:
- For someone, who’s not a developer, it’s difficult to evaluate a freelancer’s skills. You wouldn’t be able to check whether their solutions are relevant. And more often than not, it’s hard to make conclusions even based on a portfolio — you might fail to identify his past work’s weak points.
- Freelancers don’t have a strict client communication policy. A developer may suddenly disappear and come back after 3 weeks, or fail to meet some interim deadline. Besides, without a manager, there is a high chance that a freelancer won’t be able to keep you updated regularly and in an accessible way. Even good engineers often fail to translate IT talk to common English and explain their decisions.
- All the paperwork falls on your shoulders. You’d have to draw up a contract, a non-disclosure agreement, and other papers with high precision. Otherwise, there are risks that a freelancer simply won’t complete the project on time or will leak your idea to competitors.
- A single freelancer is hardly enough for a turnkey project: it requires design abilities, front-end and back-end development skills. Most likely, you’d need to hire several freelancers and manage them yourself.
It’s nice to work with a dev agency because all these risks are minimized. If you choose a software development partner with long-term experience and a decent reputation, it is likely they have credible employees, streamlined communication, and standard documents. Such mobile app development partnership might bring fruitful results.
However, an agency being a registered company is not a cure-all. Finding a reliable software development outsourcing partner who you can entrust with your development will take time and effort. You need to be prepared to talk everything through, remember to ask the key questions, and pay attention to the potential pros and cons of doing business with them.
What needs to be done before you go looking for a development partner
What is your project scope, budget, and timeline
Before searching for software development companies, you should see the full picture of three fundamental aspects: what your project will accomplish, how much money it will require, and how long it will take to complete.
First off, decide on your project goals and how you are going to achieve them. Ask yourself, what problems your future app solves. Once you clearly understand its value, find the way to approach it, set clear tasks and deliverables.
While choosing specific features to include, think not only about the technical part but about the logic behind the app’s functionality as well. Developers aren’t meant to understand the principles of some specific analysis in the field of real estate or telemedicine, for example. So it’s the client who provides the information, while developers are taking care of the app’s features.
Secondly, set a clear timeline for the project. Determine when you want the project to be completed and identify any critical milestones along the way. Consider potential factors that may affect your timeline, such as complexity of the project or regulatory requirements. This way you’ll be able to track the progress and make adjustments if needed.
Finally, assess your budget. A detailed financial plan will help you find software development companies who are ready to work with the amount of money you’re willing to invest. Besides, it’s like knowing how much you can spend before you go shopping in order to make smart choices. For example, if the funds are limited, you can make an MVP with the most basic set of features. MVP can be fine-tuned as the budget grows. If you’re sure about the idea and its success, you can order an app with advanced functionality.
Considering these factors will help both you and your future software development partner to fully understand the terms of cooperation and the expected results.
What software development services do you need
Let’s have a look at the services of an outsourced software development partner you may need to create your own app.
UX/UI design focuses on the visual aspect and provides satisfying experience for users when they interact with your app. It requires understanding user behavior, preferences, and development limitations. A well-designed user interface can make your app intuitive and engaging, so that it stands out in a competitive market. Designers conduct user research, create wireframes, visual elements of the software, ensure that the interface aligns with the app’s functionality.
Frontend development deals with building the client-side of an app. Frontend developers create responsive and interactive user interfaces, using such languages as JavaScript. Developers make sure that the design components are displayed properly on any screen and all the easy-to-use features actually work the way you expect them to. So, it’s important to pay attention to the frontend development expertise while searching for a good software development partner.
Backend development focuses on the server-side of the software. Backend developers work on the logic, databases, and server configurations that enable the frontend to function. It’s like an engine that powers your app’s functionality. Backend helps to store data safely, perform user authentication, and process user requests. That’s one more thing to evaluate while examining a prospective software development partner.
QA testing is a crucial phase in the software development process, because a new app can’t afford the negative impact on their reputation. QA testing helps identify and fix all the bugs, errors, and usability issues before launching. It saves time and resources in the long run and ensures a positive user experience. Ask your future software development partner’s team about their approach to testing apps.
Project management is the service you’ll probably appreciate the most. A professional project manager can save your time and energy through the whole software development process. There’s no need to manage the software development team’s workflow or speak to each employee directly. Just share your concerns with a project manager to make things done without any trouble.
What criteria to focus on when choosing an agency
A software development partner can work for you remotely from any place in the world: telecommuting is already a well-established and problem-free practice for IT teams. However, it is the Russian market that is probably the most lucrative in terms of price and quality. Average salaries are not as high there as they are in the US and Europe, while there are many high-level experts available. And within Russia, distance is most certainly not a restriction. It’s safe to say, you can search for the best team across the whole country and focus on any other criteria that speak about the quality of the agency’s work.
Strong portfolio
Having a large portfolio with quality cases is the first thing you should pay attention to. Check not only the most recent projects but also products that were launched between 6 and 12 months ago. If they are still up and running, apparently, it was high-quality dev work and the business lives on. Read the case studies if there are any — it’ll help you understand what exactly was developed, assess how difficult the task was and if it’s relevant to your idea. We recently wrote about evaluating an agency’s portfolio.
Case studies relevant to your field
This is another important criterion in choosing a software development partner: apps in different fields have their distinguishing features. For instance, software products in foodtech, fintech, and retail industries will significantly vary in their functionality. If your area of interest is highly specific, you should look for relevant cases.
Long-term working experience
It’s advised to look at the agencies that have been around for a while. At the very least, if a dev company has been on the market for several years and hasn’t closed yet, there must be a demand for their software development services — and this gives at least some guarantee. Agencies with considerable experience value their reputation and they will not deceive their customers or do the job poorly.
Of course, just because an agency has opened recently doesn’t mean it’s bad. It’s just that the quality of such software development outsourcing is harder to assess. But if you are actually interested in some new agency, look up its founder, google their name. That’s good if this is someone well-known in the professional community — someone, who has been in this business for a long time.
Experience with startups
There’s a difference between building an app for a startup and for a huge corporation like Google or Amazon. Budgets, timelines, and requirements for such applications will differ significantly. While developing for a startup, flexibility is especially important — for instance, to implement only the most necessary features to fit into the budget. Or change the whole idea right in the course development because the market situation has changed. Teams with startup experience are able to respond quickly, adapt to changing conditions, and give the max result with a limited budget.
Positive reviews
Check out client references on the official website of your future software development partner. It’s safe to trust video reviews — you can’t fake those. Use Google to find the reviews on third-party resources. For example, you can look up company information on Clutch. Someone else’s experience can save both your money and energy. It’s good if you find detailed reviews: this way you will see all pros and cons of working with a particular agency. But stay away from short generic reviews — these can be forged.
Media presence
That’s great if your potential software development outsourcing partner is represented in media: for example, if they send speakers to conferences, publish case studies on third-party platforms, or have a blog on their own website. This means they are proud of their work and high expertise and do not hesitate to take an active part in the life of the professional community.
Employee expertise
Trust your feeling: how professional does the consulting staff seem? If you get a prompt response, suggestions are well-reasoned and based on your project specifics — this is a good sign. If employees break agreements, run late, don’t justify their ideas, and try to impose extra costs on you — it’s better to refrain from such software development outsourcing.
Realistic time and budget estimations
If they promise you that everything will be fast, cheap, and good — that’s a reason to get suspicious. On average, developing an application for a startup takes 3 months and costs around 40 thousand dollars. Responsible contractors are unlikely to go much lower than the market prices. The same applies to timing.
Questions to ask your future partner
When looking for a software development partner, search the internet, rank companies against the criteria we listed, highlight a few candidates, and set up meetings. Once you meet, you’ll be able to have a look at the company’s representatives and ask them everything you need to know. Let’s proceed to the key questions.
1. How long will it take to complete my project?
Don’t worry if you don’t get an exact answer right away — this is quite natural. To provide an estimation, analysts must figure out what exactly needs to be done, while the designers need to come up with a layout. Once you confirm the design, they will be able to give you a delivery date. But an approximate time frame, based on your app idea, might be given to you during a call.
2. Will it fit my budget?
It is important to be realistic about the budget — you won’t get any serious offers for one thousand dollars. But if you have a budget of around 40 thousand — enough to develop an MVP — a reliable agency will tell you something like this: we can implement the following features, but it won’t be enough for anything more. Keep in mind that no one will tell you the exact number at the discussion stage. The final price will be confirmed only after the design is ready. But if in the beginning they are already trying to talk you into increasing the budget or, on the contrary, promising mountains of gold for nothing — stay away from contractors like that.
3. What’s the best way to make my product?
This is an open-ended question that allows you to see what the agency has to offer. Most likely, they’ll suggest market research to see what monetization strategy applies best. Also, the agency’s representatives must touch upon the tech side of the issue: for example, to explain the difference between native app development and React Native. If they provide explanations and enough detail — count it as a point in their favor. If all you get are one-word answers, this should give you some serious thoughts about their software development services.
4. How can I communicate with the team?
It’s important to be able to communicate with the team during the development. You must be in the loop at all stages: after all, it’s your idea they are bringing to life, and no one knows the direction better than you do. It’s great when communication between developers and the client is well-established: there should be fixed dates for calls or meetings for you to see preliminary results, and for engineers to ask you whatever they need.
If the agency cannot answer this question, there is a risk that such a level of communication is not their common practice. In this case, a software development partner might either pay little attention to you or, on the contrary, constantly bother you over minor details.
Software development partnership step‑by‑step
Fortunately, you’re not the first person to find a software development partner. It means you can use other people’s experience and avoid making common mistakes. For example, these are 8 steps that our clients took while seeking for a trustworthy software development partner.
Step 1. Find software development partners
Use search engines or professional networks to discover software development companies with relevant expertise. Examine their website to get a primary acquaintance and decide if you’re ready to work with such an outsourcing software development company or not.
Step 2. Check the software development partner references
Look for reviews on the Internet or recommendations from colleagues or fellow startups. Check if the partner delivered what they promised on time and within budget. References usually provide valuable insights into what your future cooperation may look like.
Step 3. Validate software development expertise
Examine the potential partner’s skills and experience in the specific technologies or platforms your software development project requires. Review their portfolio to see if they’ve successfully completed any projects that are similar to yours.
Step 4. Evaluate the software development company’s processes
Each software development partner has their own workflow. You’d better understand this process to see if it aligns with your expectations. Consider whether they use modern software development frameworks and industry best practices. A compatible software development process will make the future partnership smoother.
Finding a trusted software development partner takes time, but it will save you money and effort in the long run.
Step 5. Schedule meeting and interview software development partner
Personal interaction is a must. Schedule a meeting with your potential partner, either in person or virtually. Ask questions about their team and how they’ve handled challenges and difficulties in previous projects. Direct communication and shared vision are key factors for developing a successful app.
Step 6. Evaluate an outsourced development team
It’s also essential to assess the team members whom you outsource software development to. Determine their skills and experience. Check if they meet your project’s requirements and that language and time zone differences won’t make the software development partnership difficult for both of you.
Step 7. Discuss the cooperation terms
Start with discussing the features to be included in the MVP. Then outline the project development cost and payment terms. Don’t forget to agree on the project timeline, including milestones and deadlines. Determine when you expect the MVP to be ready and how often you’ll receive progress updates.
Step 8. Share responsibilities wisely
Clarify who will be responsible for specific tasks and areas within the project. Discuss your own level of involvement in the project with the software development partner to ensure that everyone knows their responsibilities and there’s no gray area.
Checklist for choosing a software development partner
So, to develop a software application, it’s best to opt for one of the dev agencies, which exist in abundance all over the globe. But you should approach software development outsourcing thoughtfully: don’t be guided by your emotions and don’t pick randomly just to save time.
Here is a checklist to help you do it the right way.
✅ Assess the development team that agency offers you to work with. Check their experience, hard and soft skills.
✅ Discuss the cooperation terms before signing an agreement. Talk about the MVP features, budget, and timeline.
✅ Clarify your and your team’s responsibilities in the development process.
Our experts are always there for a chat and will be happy to answer your questions. Purrweb has been helping startups to launch their apps for 9 years. We have experience with healthcare, fintech, social networks, marketplaces — you can see all industries and products here.
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