Important Questions To Ask Custom Software Development Company

The digital revolution has become an integral part of businesses. As an entrepreneur, you want to leave no stone unturned to build excellent software; you bend over backwards, to ensure everything is arranged, ready to put limitless money, heart, and soul into making the software development dream come true. The chances of success increase when businesses collaborate with reliable, best-in-class software development companies.

The worldwide software developer population will be 28.7 million by 2024, indicating many options for software developers to hire. Hundreds of software development companies employ millions of software developers skilled in different programming languages, tools, or disciplines.

The wide range of software companies’ options confuses businesses. So, how do the businesses start with?

Fortunately, a list of top questions makes the hiring process easier. As a business looking to hire best software development company, consider asking companies these questions to separate the wheat from the chaff.

Important Questions to Ask a Custom Software Development Company

Evaluating the potential software development partner is difficult, making hiring difficult. The checklist of the following questions to ask from the software company ensures the best collaboration. Consider asking them all the questions that are:

What development methodologies do you use?

The development methodology a company follows shapes the entire software development process, impacting the timeline, flexibility, and overall success of the project. The most common methodologies include Agile, Waterfall, Scrum, Kanban, DevOps, and Hybrid models.

Agile is ideal for projects that require iterative development and constant feedback from clients. It offers flexibility, allowing for changes throughout the development process.

Waterfall, on the other hand, is more suitable for projects with well-defined requirements and a linear process.

Scrum and Kanban, often used within Agile, help manage project workflows and prioritize tasks in sprints.

DevOps is another methodology gaining traction, promoting continuous integration and delivery by bridging the gap between development and operations teams.

Tip: Ask the Software development company to explain their preferred methodology and how it aligns with your project’s requirements.

What Post-Launch support and maintenance do you provide?

Launching software is just the beginning. The real work starts post-launch when regular maintenance, updates, and user feedback become crucial for ensuring the software’s performance and longevity. A reliable software development company should offer ongoing support, including bug fixes, feature upgrades, and handling security vulnerabilities.

For instance, it’s estimated that up to 67% of a project’s budget could go toward post-launch maintenance, making it vital to have a clear understanding of what support the company offers.

Additionally, long-term support ensures that your software remains up-to-date with evolving technologies and user needs.

Tip: Make sure the company offers a detailed post-launch support plan, including response times and types of updates (e.g., major upgrades vs. minor bug fixes).

Who owns the Intellectual Property (IP) Rights?

Ownership of intellectual property (IP) is a critical legal aspect of software development that should be addressed early on. As the client, you should own the rights to the software being developed. This allows you to modify, sell, or use the software as needed without any restrictions.

Ensure that the development company signs a legally binding Non-Disclosure Agreement (NDA) to protect your confidential information and includes clear IP clauses in the contract. This helps avoid future disputes regarding code ownership and ensures that your intellectual property is secure.

Tip: Always ask about IP ownership and make sure it’s clearly outlined in the contract before proceeding with the project.

What are your Outsourcing models (Onshore, Nearshore, Offshore)?

Understanding the outsourcing models a company offers helps you choose a model that fits your communication needs, budget, and project scope. Here are the three common models:

Onshore: Working with a company in your country ensures easier communication and fewer time zone challenges, but it may be more expensive.

Nearshore: This option allows you to outsource to neighboring countries, offering a balance between cost and communication.

Offshore: Offshore outsourcing to countries with lower labor costs can save money, but cultural and time zone differences could pose challenges.

Tip: Choose an outsourcing model that aligns with your project’s budget, timeline, and need for real-time collaboration.

How do you manage changes in project scope?

Changes in scope are common in software development, and how a company manages them can make or break a project. A good development partner will have a clear process for addressing changes, such as assessing their impact on the timeline and budget, and will maintain flexibility without compromising on quality.

Tip: Ask how the company handles scope changes and whether they use an Agile methodology, which allows for more flexibility as project needs evolve.

What QA process do you follow?

Quality assurance ensures that software products are built with precision and provide flawless performance. Ensure the outsourcing company has a team of testing engineers and QA experts who continuously test the software, making sure everything developed behaves as expected. Check out the testing process, test methodologies and third-party tools the QA team leverages to identify and fix bugs proactively.

Some software companies use a combination of automated and manual testing, ensuring software is tested faster, along with qualitative metric evaluation from human testers. When a company fails to explain its QA (Quality Analysis) process or doesn’t have a testing mechanism, you should avoid considering those companies.

Tip: Inquire about their quality assurance methods to ensure thorough testing throughout the Software development life cycle process.

How will you start my software product development?

The first step towards software development lays the foundation of the complete project. The stronger the foundation, the better the software’s future. You should ask about the first step of the software development life cycle process that the company takes once the project is rolled out on the development floor. Generally, the company responds to a consulting process where software project details are discussed with key business stakeholders.

This discovery workshop let the company know better about the project, its requirements, the client’s expectations, and how it can be improved. Clarifying business goals and vision with software development helps the team invest their efforts and time accordingly.

Tip: Ask for a clear software product development plan to understand how they will begin the development process.

What is the Requirement Analysis Phase of SDLC? Detail Guide

How do you ensure the scalability of the software?

As your business grows, your software should be able to handle increased traffic, users, and data without performance degradation. A good development team will design the software architecture with scalability in mind, ensuring that it can easily be scaled horizontally or vertically.

Tip: Ask how they plan for future scalability and whether they have experience building systems that can grow with the business.

What are your security protocols for data protection?

Data protection is vital, especially in today’s digital landscape where breaches are increasingly common. The company should implement advanced security measures such as encryption, firewalls, multi-factor authentication, and regular security audits. They should also have protocols for securely managing sensitive data like personal and financial information.

Tip: Request details about their security protocols, including how they handle sensitive data and whether they comply with international data protection regulations such as GDPR.

How much does software development cost?

One of the biggest misunderstandings is that clients think that small changes they ask for in their product would go smoothly on the software development companies. Nevertheless, that is not always the case. Even small changes pile up as a big task and then the software company doesn’t hesitate to charge them with extra money. It is always important to clarify the budget or the total expense of the software development project.

There are various engagement models your IT partner may offer so that you can decide on the one that suits your wallet. On the other hand, you can also ask the expert software development consultant itself to suggest to you the model that is worth going for that help you choose the best resources.

Tip: Get a detailed Software development cost breakdown upfront to avoid hidden charges later.

Have you worked on similar projects before?

Industry-specific experience is invaluable when choosing a software development partner. Whether you’re building a fintech app, an eCommerce platform, or a healthcare solution, it’s essential that the development company has experience in your industry.

Ask for case studies or references from previous clients who had similar project requirements. This will give you insights into how the company handled challenges, adhered to deadlines, and delivered quality software.

Tip: Review relevant case studies and request to speak with previous clients to understand the company’s capabilities.

What engagement models do you offer?

Software development companies offer various engagement models, each suited to different project types:

Dedicated Teams: Ideal for long-term projects where you need a full-time development team.

Project-Based: Suited for one-off projects like mobile app development.

Resource-on-Demand: Perfect for short-term needs or when you require additional expertise for your internal teams.

Tip: Ensure the engagement model fits your project’s size, complexity, and budget.

What tools and technologies do you use?

The tools and technologies a Software development company uses can significantly impact the quality and efficiency of your project. Collaboration tools such as Jira, Slack, and Trello enable clear communication and help track progress. DevOps platforms like GitHub and Docker streamline the development and deployment process.

In addition, the tech stack—the programming languages, frameworks, and third-party libraries the company uses—should be aligned with your project’s requirements. For example, React Native is excellent for cross-platform mobile apps, while Python is widely used for data science and AI applications.

Tip: Ensure that the software development company uses modern tools and technologies that fit your project’s scope and goals.

What is your approach to software accessibility and inclusivity?

Inclusive design ensures that the software is usable by people of all abilities, including those with disabilities. A company that prioritizes accessibility will design software that complies with standards like WCAG (Web Content Accessibility Guidelines) to ensure it’s accessible to everyone, regardless of ability.

Tip: Ask about their experience in building accessible software and whether they follow established accessibility guidelines. This can broaden your user base and ensure legal compliance.

How do you communicate with clients?

When you hire a dedicated software development team from a bespoke software company, it is important that the communication is regular and flawless. Miscommunication often leads to misunderstanding and ultimately escalations in projects. Miscommunication including no regular updates can lead to a big failure irrespective of the service provider’s reputation. Hence, you must ask the software development firm, which tools they use for communication and how often do they communicate regarding project development updates.

Tip: Confirm their preferred communication channels and ensure they provide regular updates.

How do you ensure the cultural fit of your development team with our company?

Cultural fit plays a crucial role in the success of long-term partnerships. A good software development partner will make sure their team understands and aligns with your company’s work culture, communication style, and values. This helps avoid friction and ensures smooth collaboration.

Tip: Ask how they assess cultural fit before assigning a dedicated software development team to your project and how they facilitate open communication and collaboration.

What is the estimated timeline for my project development?

Many software companies debuting to build software faster in 2-3 months generally fail to meet deadlines. These are traps to fool businesses; later, they prove costly. Businesses should ask for a realistic project timeline based on software requirements that reveal the time taken for every part.

Additionally, getting a breakdown for every functionality, design, architecture, back-end, testing, and others is good, which lets you know the company has provided a realistic timeline and can complete the project before the deadline.

Tip: Ask for a detailed timeline with milestones to ensure clarity on delivery expectations.

Which pricing models do you offer?

The software development cost estimation largely depends on the pricing model selection. Mainly, there are two pricing models- the time & material-based and fixed-price models. Each model is unique and fits well with specific project requirements, or else they increase costs unnecessarily.

In the fixed-price model, the software development requirements are set in stone, and the business agrees to pay a specific amount as defined in the agreement. On the contrary, the time & material-based model enables businesses to pay the software development company based on the resources required and time incurred for software development. In this model, changes are welcomed in the middle of development and time, and cost increases proportionately.

Tip: Ensure they offer flexible pricing models (fixed, hourly, etc.) that align with your budget.

Can you provide references?

The portfolio of the company shouts loud about the best projects and development services that the company delivers to businesses. However, the proof is in the pudding, wherein the references of previous clients will help. The genuine development company never hesitates to provide references or case studies.

Ask about references and communicate them directly, which helps you know the satisfaction rate and development experience directly from the existing client. Based on outcomes, you can collaborate with the software development company. Also, professional software development companies know these questions, so they are always prepared with references or projects to share with business clients.

Tip: Request client references to verify their track record and quality of work.

What is your project management approach?

Project management is the backbone of any successful digital product. Even though your documentation in software development outsourcing is all perfect, if there is a failure or flaw in managing the project, the entire cycle is at a greater risk. You need to ask this question to ensure that there is someone who is taking care of all development by supervising the entire software product development. Generally, software development companies adapt various development models such as agile, waterfall, scrum, and the like. They also deploy a project manager for the smooth execution of the project.

Tip: Ensure they follow a structured project management framework that includes regular updates and reviews.

What is your commitment to sustainability?

In today’s business environment, sustainability is becoming increasingly important. Many companies now prioritize green software development, including practices like energy-efficient coding, reduced data consumption, and using renewable energy sources.

If sustainability aligns with your business goals, ensure the development company follows practices that minimize environmental impact while delivering high-quality software.

Tip: Ask the company about their sustainability practices and how they integrate green initiatives into their development processes.

How do you foster innovation within your Software development team?

Innovation is crucial for staying ahead in a competitive market. Ask the development company how they encourage creativity and innovation among their Software development team members. This could be through R&D projects, hackathons, or regular brainstorming sessions that promote new ideas and problem-solving approaches.

Tip: Ask for examples of innovative solutions they’ve developed in the past and how they incorporate cutting-edge technologies into their projects.

What is your strategy for mitigating technical debt?

Technical debt refers to the trade-offs made during software development that can cause issues down the line, such as rushed coding or shortcuts. A well-managed Software development process includes strategies to minimize technical debt, such as regular code reviews, thorough testing, and proper documentation.

Tip: Ask how the company prevents technical debt from accumulating, and what their approach is to resolving any debt that does arise.

Do you use contractors or in-house Software developers?

Knowing whether a company uses in-house software developers or contractors is important for consistency and long-term support. In-house teams tend to offer better continuity and communication, while contractors may be brought in for specialized tasks, potentially complicating handovers and long-term project maintenance.

Tip: Ask whether the development will be done by the company’s in-house staff or if they rely on external contractors. This helps ensure consistent communication and a clear point of contact throughout the project.

How many developers do you have?

Nowadays, some software development companies showcase regional offices in the USA, UK, or Canada and provide developers at hourly rates reflective of these IT hubs. But in reality, they don’t have a team and outsource the software development project to other outsourcing companies or freelancers from other countries. It causes a major risk to the project because you are unaware of the team working on it.

To avoid such circumstances, it’s better to ask about the team of in-house developers, designers, and testers, along with the seniority level that the company has. Besides, verify the list of team members who will be allocated to your project and prefer to interview them individually, ensuring your project is in safe hands.

Tip: Ask about team size to ensure they have the capacity to handle your project without delays.

How Do You Stay Current with Technology Trends?

With technology evolving rapidly, it’s essential to work with a company that stays updated with the latest Software development trends such as AI, blockchain, big data, and cloud computing. Companies that adopt emerging technologies can provide innovative solutions that make your software scalable and future-proof.

Tip: Ask how the company incorporates new technologies and trends into their projects to ensure your software is cutting-edge.

How do you approach user-centered design (UCD) during the software development process?

User-centered design focuses on understanding the needs and behaviors of end-users and building the software around them. By involving real users in the design phase of SDLC process, from wireframes to usability testing, the company ensures the product meets actual user needs and offers a great experience.

Tip: Inquire how the company incorporates user feedback during development and whether they perform usability testing at different stages to ensure the software product is user-friendly.

What are your areas of technical expertise?

While you may not face many issues if your project is based on old or traditional technology platforms such as Android, iOS, PHP, Java, C, C++, and the like, if you are aiming to develop a project that is on a unique niche you must ask the question of the area of expertise. For instance, a software development project based on Robotic Process Automation (RPA), Artificial Intelligence, Big Data, AR, VR, or Metaverse may require special expertise.

Tip: Verify their experience in the technologies and frameworks required for your project.

What to do if I’m not satisfied with the end product or service?

As it is seen in most cases worldwide, all industries benefit from software development. Asking the software development partner about what to do if you are not satisfied with the product or service makes it a crucial question to avoid hard times. Both of you should agree at the times and hence need to prepare beforehand regarding the situation.

Tip: Clarify their revision policies and how they handle disputes or unsatisfactory deliverables.

Things to Consider when Switching Software Development Team

How do you develop project KPIs?

The Key Performance Indicators (KPIs) deliver project-critical information so that you can analyze the software system development life cycle and ensure that the final product will be aligned with your business objectives. Asking the outsourcing software development company about how they develop project KPIs shows you their sincerity and project development methodology. It is because KPIs involve starting with building a foolproof strategy, defining questions and answers, identifying data requirements, and ultimately determining the right measurement process and frequency of every project component.

Tip: Ask how they track Software project success with measurable Key Performance Indicators (KPIs).

What are your go-to tools for project management?

Software project management is a complex task and it is not possible without proper management tools. Asking the software development firm about what tools they use to manage the software development life cycle is essential because these tools help them keep a keen check on the progress of the project. Also, such tools possess useful features that assist software programmers and managers in achieving milestones and tackling flaws, if any.

Tip: Ask about their use of project management tools like Jira or Asana to ensure transparency.

Have you developed solutions for our industry before?

Industry experience makes a big difference especially when the project is enterprise-level. Many custom software development companies master a particular niche or industry and they excel in projects based on it. Entrepreneurs who are concerned about their big-budget projects should ask the service provider whether they have any solutions developed for the same industry in the past.

The experience from the past helps the company to quickly get on to your industry-specific project as they understand your business objectives pretty well. Even further, they can also assist or suggest to you what has worked best in the market from their expertise in the industry.

Tip: Ensure they have industry-specific experience to reduce the learning curve for your project.

Why should I choose you?

When you pour your valuable time, money, and effort into the software development project, you expect the company to be unique. But, from a psychological perspective, asking- what distinguishes your business from the competition will help you know the values that the software company can add to the project.

Sometimes, the answers from the custom software development companies are out of the box, which unleashes things hidden in plain sight and may benefit your organization in some form or another. It would be best if you ask the company this question.

Tip: Ask them to demonstrate their unique strengths and past successes to assess that they are the right choice for your software development project.

What is your software maintenance plan?

As mentioned earlier, the biggest challenge is after the product is launched or deployed. No software is useful if it malfunctions even once in a blue moon. Any enterprise needs to make sure that their software product or tool is up and running 24/7. Hence, asking for the software maintenance plan from the software development company that you are thinking of hiring makes a lot of sense. Businesses, be it start-ups, SMEs, or Enterprises, must avail the annual maintenance plan through a contract with their IT partners.

Tip: Confirm that they offer long-term maintenance to handle updates, bug fixes, and enhancements.

Can you start working on my project immediately?

Understanding the company’s availability is crucial, especially if you’re working with tight deadlines. While some software development companies may be able to start immediately, others may have a waiting period depending on their current workload. This question helps you gauge their capacity and how soon they can begin.

Tip: Ask about their typical lead times and whether they have the resources to dedicate to your project right away. This will help you avoid delays and plan your software project launch timeline better.

How do you approach data ethics and AI governance (if AI/ML is used)?

For projects involving Artificial Intelligence and Machine Learning, ethical considerations are key. AI systems can inadvertently perpetuate biases, and it’s important to know how the company addresses these challenges. They should have a clear governance framework for ensuring fairness, transparency, and accountability in AI systems.

Tip: Ask about their approach to data ethics, how they mitigate bias in AI models, and whether they follow any governance frameworks to ensure responsible AI use.

Which is better – a project-based or dedicated team model for my software development?

If you are technically sound, you may take the decision yourself. Nevertheless, if you have no clue which hiring or engagement model is for you, you may need to ask for the experts at a custom software development company.

It is important to decide upon the right hiring model so that your project falls within a specified budget and yet you don’t get a substandard product. The model depends on business requirements, software documentation, standard methodology, and many more factors.

Tip: Ask them to explain the pros and cons of each model based on your project’s complexity and size.

How do you handle security and compliance requirements?

Security and compliance are critical for any software project, especially in industries like healthcare and finance. A good software development company should have clear policies to ensure data protection and regulatory compliance (e.g., GDPR, HIPAA). This includes robust encryption, secure coding practices, and adherence to industry-specific standards. They should also regularly update their security protocols to prevent breaches and address vulnerabilities.

Tip: Ask about specific tools or protocols the company uses for data encryption, security testing, and compliance with relevant regulations. This will help ensure your project meets all legal and security requirements.

Apart from these questions, you can also ask about the technology stacks for software development they intend to use for your project.

Asking these general questions to a custom software development company can assure you that the company you choose to hire will be the right one for you and the final product you get is up to the mark and it is worth every penny spent.

A Glance at Questions to Ask a software company and their Usability

Questions	Why is it Important to Ask?	What is Ideal?
What are your areas of technical expertise?	Many companies boast but they don’t have that expertise.	The company should have the technical expertise specific to your project.
Which is better? A project-based or dedicated team?	Choosing the wrong model will cost you a lot.	Dedicated model for a bigger and defined project.
Have you developed solutions for our industry before?	To grab a project, firms fake their expertise.	Portfolio with a similar project in the same field/niche.
How do you handle intellectual property and its issues?	Ownership problems and copyright issues.	IP rights should be all yours and clear.
What to do if I’m not satisfied with the product or service?	Half-developed project is difficult to get done even with the other agency.	Clarify all the terms and conditions on receiving an inferior quality product or service.
What to do after a product is launched?	There are marketing and technical aspects post-launch.	A complete package of deployment, training, and marketing is helpful.
What is your software maintenance plan?	Most agencies fail in post-sales services.	It is better to have a contract so that your product runs smoothly.
How do you develop project KPIs?	Poor KPIs will lead to project failure.	It assures you that the software company is serious and experienced.
What is your project management approach?	Many companies just grab projects and leave you high and dry.	A robust methodology should be in place to ensure the successful completion of the project.
What are your go-to tools for project management?	Even great talents fail to manage projects without proper tools.	Authentic and licensed tools should be in place to ensure smooth management.
How do you communicate with clients?	Miscommunication leads to misunderstanding and that results in escalations.	An assurance of flawless communication and regular updates is important.
How much does software development cost?	The gloomy estimation will shake your budget.	A proper engagement model and budget estimation should be conveyed.

How to choose the best software development company?

On the internet, a simple search for ‘best software development company’ in any country would render you hundreds of results, but which one to contact? How to shortlist among the top software development companies? Well, hiring remote developers at an offshore IT company is easy but tricky. You need to check the genuineness of the firm before you sign the deal.

One way to ensure that you don’t fall into the trap is to prepare frequently asked questions about software development and shoot them to the shortlisted software company. Also, before hiring anyone, you should also know about software development myths so that you don’t believe anything that comes negatively about outsourcing software development projects.

Want to make the right choice? Ask the Right Questions

Choosing the right software development company is a pivotal decision that can greatly impact the success of your project. By asking the right questions, you ensure that your partner aligns with your technical requirements, budget, and long-term goals. From understanding their project management approach to verifying their post-launch support, this guide equips you with the tools to make an informed decision and foster a productive partnership with your software development team.

Outsourcing a project to a software development company is time-consuming and involves multiple steps. These steps are well-covered in the checklist of questions that provide business clients with everything required to make the right decision for hiring the software company. More questions are added to the list and asked while hiring, which, in turn, eliminates the possibility of misunderstanding that harms development in the future. The questions will make businesses vigilant and seal the deal with the right partner. Let’s ask!