Everything you need to know about finding a software development partner

Looking for a software development partner? Read this

Anywhere from 30% to 70% of software development projects fail to complete on time and budget. That’s a huge risk for organisations. And for the people tasked with running those projects? Success or failure can be make-or-break, not just for the project but for their own reputation. 

For software projects that can’t be resourced in-house, success or failure can usually be traced back to partner selection. 

Making a hasty decision can result in a software partner that doesn’t have the expertise needed, that can’t provide the resources for the project, or that simply isn't a good cultural fit for the organisation.

Whether you're in a startup looking to build your first product, an established company expanding your digital capabilities, or an enterprise seeking specialised expertise, it can be tempting to focus solely on cost, speed, or technical capability. But that leaves essential factors, like cultural fit, communication style, and potential for long-term partnership, on the table. 

Of course, there is no one-size-fits-all answer to the question of how you find the right software development partner—if only it were that simple! What you can do is follow a three-step framework for finding the right software development partner for your organisation.

First, understand your needs

If selecting the right partner is the foundation, understanding your needs is the first solid layer of stone upon which the rest of the foundations are laid. It's all too common for this step to be rushed or skipped altogether, but without a deep understanding of your needs, you don’t have anything to evaluate your options against.

What is the project scope?

Let’s go back to basics: what is the exact role of this project? Consider the expertise required, the complexity of the project, and the project’s strategic importance for your organisation as a whole, as well as factors such as the expected user base, integrations required, and any regulatory compliance considerations.

What does it require technically?

Develop a thorough understanding of your technical needs: programming languages, frameworks, databases, cloud platforms, and third-party integrations. Also consider non-functional requirements, such as performance benchmarks, security standards, scalability needs, and accessibility compliance.

What is your timeline and budget?

Unrealistic timelines and budgets are the fastest way to compromise on quality or frustrate your software partner. Setting realistic timelines and budgets (considering both internal constraints and the current market conditions) cuts the risk of project failure.

Where are the gaps in your internal capabilities?

Consider how much you want your partner to take on: do you need them to augment your existing team or to take full ownership of the project? Take an honest look at your internal technical capabilities to identify your strengths and pinpoint the places you’ll need external expertise. 

What is your long-term vision?

Will this be a one-off project, or are you seeking a long-term partnership? Do you eventually plan to bring development in-house? Taking the time to consider your long-term technology strategy can help you find the right partners aligned with your big-picture vision.

Then, understand your options, 

Once you have a good understanding of what you need from a development partner, you need to assess the landscape of partners available to you and focus on providers that match your specific needs.

Organisation size

Freelancers and individual contractors

Hiring a freelancer or individual contractor can be a way to quickly flex your team for small projects and specific technical or specialised tasks. 

Freelancers can typically offer direct communication, with short lead times and competitive rates, though they may lack the resources for comprehensive or complex projects, and can have limited bandwidth and availability.

Small development agencies

Small agencies with around 2-20 developers are ideal for small to medium-sized projects that require more resources than a freelancer can provide, but don't need enterprise-scale capabilities. 

These smaller agencies often provide more personal attention, agility, and competitive pricing than larger firms, though they may also have more limited scalability and resources.

Mid-sized development companies

Well-suited for medium to large projects, a mid-sized organisation will employ anywhere between 20 and 100 developers. 

These companies typically offer a diverse range of skills and resources with established processes in place, enabling them to offer scalability at competitive pricing, though they may lack cutting-edge expertise and offer less personal attention than smaller agencies. 

Large development firms

Firms with over 100 developers are typically the best choice for complex, large-scale projects requiring extensive resources, proven methodologies, and enterprise-grade processes. 

These larger firms tend to have specialised industry expertise and extensive resources in-house, with the capability to deliver global projects, though that also tends to come with higher costs, less flexibility, and the potential for communication challenges.

Other considerations

Specialists Vs generalists

Specialised boutique firms have deep knowledge and extensive connections within specific technologies, industries, or types of projects. They’re the go-to in their field and are the perfect choice for highly specialised projects.

Specialists may, however, have limited scope, less comprehensive services and higher costs than more generalised providers.

Offshore vs. Nearshore vs. Onshore

Consider geographical factors in your selection. 

• Offshore partners may be able to offer a cost advantage, but can also present challenges in communication and time zones

• Nearshore partners provide a middle ground between cost effectiveness and collaboration opportunity

• Onshore partners offer easier collaboration and communication but typically at higher costs.

Finally, understand how to evaluate and select your technology partner

Now that you have a good understanding of your needs and the options available to you, you can evaluate potential development partners.

Invest time upfront in clearly defining and documenting requirements, acceptance criteria, and success metrics to avoid misunderstandings, scope disputes, and ultimately failed projects.

Considerations might include:

Technical expertise and experience

Selecting a partner without the relevant technical expertise spells disaster for any project. Look for partners who have successfully delivered projects similar to yours in terms of complexity, technology stack, and industry requirements. The right development partner will be able to engage in technical discussions and acknowledge project complexities.

How to assess technical expertise and experience:

• Ask for case studies that show problem-solving abilities (not just technical implementation) and specific examples of relevant experience

• Ask questions about how they resolved challenges they've encountered

• Review code samples

• Interview key team members.

Team composition and stability

Many agencies present their best talent during the sales process and then assign junior developers to actual project work. Find out who will actually work on your project. Be cautious of partners who can't provide clear information about the team, or who seem to have high staff turnover.

How to assess team composition and stability

• Request detailed team composition information (experience levels, roles, availability)

• Investigate team stability and turnover rates

• Ask to speak with senior team members

• Ask about backup plans if key team members become unavailable.

Communication and project management

Partnerships live and die on their communication. You need to be able to trust that a development partner will be responsive when you need them, will explain things clearly, and will proactively address your concerns before they become real problems. Treat the selection process as a trial of your potential partners’ communication style. Inadequate communication can lead to misunderstanding, drifting projects, and bigger issues down the line.

How to assess communication and project management

• Watch for partners who are slow to respond, provide vague answers, or fail to ask clarifying questions about your requirements during the selection process

• Be cautious of partners who overpromise or provide unrealistic timelines and budgets

• Ask what project management methodology and tools they use

• Ask about reporting cadence, stakeholder involvement, and change management processes.

Quality assurance and testing

It’s in the name: QA processes are essential for delivering high-quality software. Without robust testing and quality assurance, how can you trust that software will do what you need it to do?

How to assess quality assurance and testing

• Investigate partners' testing methodologies (including unit, integration, user acceptance, and performance testing)

• Ask about their bug tracking and resolution processes

• Request information about their code review practices, documentation standards, and quality metrics.

Security practices

Now more than ever, with cybersecurity, hacking and data breaches never far from the news cycle, security practices are an essential consideration in any software development product.

How to assess security practices

• Evaluate their approach to secure coding and data protection

• Ask about their compliance with relevant regulations, security certifications, audit procedures, and incident response plans

• Ensure they have appropriate security clearances and compliance experience for any sensitive data you expect to handle.

Cultural fit and values alignment

Technical capabilities alone don't guarantee partnership success, and responsiveness isn’t the only indicator of communication. Your teams need to be able to align communication styles, work ethics, values, and approach to business. Focusing exclusively on technical capabilities while ignoring cultural fit is a shortcut to friction and communication breakdown.

How to assess cultural fit and values alignment

• Pay attention to how potential partners interact with your team

• Are they collaborative, respectful, and aligned with your working style?

Financial stability and business practices

Partner financial stability affects their ability to complete your project and provide ongoing support. Fair, transparent business practices indicate a partner who values long-term relationships over short-term gains. Partners who seem desperate for business or who pressure you to sign quickly may be experiencing financial difficulties or have unrealistic business practices.

How to assess financial stability and business practices

• Evaluate stability through factors like company age, client retention rates, office facilities, and employee tenure

• Investigate their business practices, including contract terms, payment structures, and intellectual property policies.

References and testimonials

Don’t blindly trust everything a partner tells you. Looking to references can give you valuable insights into performance and relationship management. 

How to assess references and testimonials

• Request reference calls with past clients who worked on similar projects

• Ask references specific questions about communication effectiveness, problem-solving abilities, adherence to timelines and budgets, and post-launch support quality.

The selection process

Design a structured selection process that goes beyond surface-level assessments to select the partner that has the skills and experience your project needs to succeed.

Stages in the selection process might include:

The RFP (request for proposal)

The more specific your RFP, the more comparable responses you'll receive.

The initial screening

Review proposals for basic qualification criteria to narrow down your list of potential partners.

The detailed evaluation

Create evaluation scorecards to weight different criteria according to their importance to your project.

The presentation and interview

Assess the communication skills, technical expertise, and cultural fit of top candidates in proposal presentations and detailed interviews.

The pilot project or proof of concept

Start with pilot projects or proof-of-concept work before committing to critical projects or long-term partnerships.

The final selection

This shouldn’t always come down to cost—in fact, the lowest-cost option often becomes the most expensive when projects fail or require extensive rework.

Selecting your software development partner

The success or failure of software projects so often comes down to partner selection. 

Selecting the right partner can be the start of a beautiful relationship—or at least a successful development project!

Selecting the wrong partner, though, can spell disaster. Communication breakdown. Technology failure. Stretched budgets and timelines.

All too often, the misalignment comes down to a focus on cost over value. When you select development partners based primarily on cost, you might soon discover that the cheapest option tends to become the most expensive, due to quality issues, delays, and additional work requirements.

When you understand your requirements and weigh your selection criteria based on value factors (such as specialism, quality, reliability, cultural fit, and long-term support capabilities) rather than on cost alone, you can find the right software development partner for your project—and that’s the only criterion that really matters.