A Simple Guide to Choosing Custom Software Development Companies

A simple guide to choosing custom software development companies for your next project. From in-house teams to outsource and nearshore.
Custom software development company team

You’ll need a custom software development company that usually got the best software developer if you want to meet a specific need or fill a unique function. For example, bespoke software is needed for companies that wish to digitize and open up their processes. You might need to fine-tune a program as a retailer or request tailor-made software for your rising startup. 

Help yourself decide which development company you should hire according to your unique goals. Read this comprehensive guide to choosing software companies and developers, and see through the thicket of competing companies toward the ideal partnership. 

Your first step is to consider software development company types.

1. Consider the Types of Custom Software Development Companies

For every purpose and project, software developers from a custom software development company exist with a specialization in your aim. 

Some emphasize enterprise systems and portals by working on web applications. Others develop mobile, desktop, big data, and real-time applications. See how custom software types determine which focuses you should consider:

  • Web. Custom web developers and development companies focusing on web applications bring an enjoyable UX experience that works across browsers and devices. If you need a web portal or enterprise system to delight employees and customers, you might choose a custom web application developer. 
  • Mobile. Mobile applications need to satisfy difficult, complex enterprise management conditions, having native or cross-platform functionality that can complement a web application. Needing a custom mobile application with its own back-end, you would hire a mobile developer. 
  • Desktop. Also potentially cross-platform or OS-specific, desktop applications suit the need to work offline and control data security. For this kind of efficiency and performance, choose a desktop application developer. 
  • Big Data. Custom, big data tools provide deep insight into your business using high-volume data processing. To segment customers, understand processes, and predict outcomes, a big data developer can help. 
  • Real-time. A real-time application exploits the latest, bleeding-edge technology to process data instantly and immediately. For a time-limited response, like advertisements, recommendations, and spam detection, you will need a real-time developer. 

For each of these kinds of application development, deeper specialties rise up for consideration. A company might develop web applications specifically for hospitals, restaurants, hotels, or your niche. 

Or, a big data developer could offer custom software development services only to marketing firms and B2B organizations who need to leverage huge amounts of stored information. Whatever the case, understand the pros and cons of any potential development company because they come in many forms.

Look below at how outsourcing, in-house teams, and software houses could be one of the solutions for your decision.

2. Weigh the Pros and Cons of Getting a Custom Software Developer or Companies

You could hire a software developer or a large, established New York firm. Outsourcing attracts many. Then, the choice of offshoring and nearshoring presents itself. But, in-house teams come with their own set of advantages. Knowing the positive and negative features of these diverse companies prepares you to choose wisely. 

Outsourcing, Offshoring, and Nearshoring Custom Software Development Companies

Since companies find in-house teams more expensive and demanding than outsourced talent, they turn to alternatives like outsourcing, offshoring, and nearshoring. 

Outsourcing Pros

The advantages of outsourcing—whether offshore or nearshore—come primarily from avoiding the pitfalls of an in-house team:

  • Outsourcing allows shorter, project-limited contracts with the option to extend the agreement at a later date.
  • You get greater flexibility with the opportunity to change partners quickly and easily
  • See more savings in costs and time spent without the hassle of hiring a full, in-house team. 
  • Share risks with the outsourced provider who assumes some responsibility for the project. 
  • Gain increased focus on the core of your operations without the task of managing a peripheral project. 

Outsourcing Cons

Risks that could harm the project or affect the outcome appear when you look at the negative side of outsourcing:

  • Poor communication becomes a liability for the company when time zones and practices make partners unreachable. 
  • Hidden costs come from outsourced talent despite the attractiveness of low fees overall.
  • Deadlines lack synchronization when moving overseas or even within the U.S. 
  • Confidentiality concerns haunt without the inclusion of a tight NDA for securing sensitive information. 
  • Lacking expertise, training, and vetting, some outsourced teams flounder with project quality. 

Should I use Offshoring and Nearshoring Custom Software Developer?

Why do companies outsource? Offshoring allows lower costs and a global talent pool, but there are communication barriers and cultural differences in work habits. 

Nearshoring, on the other hand, saves time zone difficulties, remains cost-effective, and means fewer cultural differences. Nevertheless, you’ll have fewer providers to choose from at a higher cost than offshoring.

If you choose to nearshore or offshore, ensure there is ample client support and representatives you can reach regardless of your timezone. Some agencies offer local experts as well as nearshore talent.

In-House Teams

In-house and internal development teams are best for businesses that have a digital product as their core. They need a dedicated software development team that is always available, responsible, and active in improving and maintaining the product. 

In-House Pros

Effectively, in-house teams are better for long-term projects and core products:

  • Internal teams are immediately available for maintenance and updates. 
  • They can be supported by remote teams and, in some circumstances, outsourced talent to offset costs. 
  • Teams of developers can complete impressive applications by dedicating their time and energy completely. 

In-House Cons

An internal team asks for more commitment, money, and time than many want to invest:

  • It takes around 30 days to hire a competent programmer, and this is likely to grow. 
  • Building an in-house team requires intensive training and takes significant time. 
  • In-house teams are much more expensive than outsourcing, offshoring, and nearshoring. 

Software Houses

“Software houses” or agencies can offer you key benefits like time savings and cost optimization. Though this provides staff augmentation, they come a few important risks in control and availability. Consider these pros and cons of hiring a full-fledged agency. 

Software House Pros

Agencies offer a mix of benefits to software development projects in time spent onboarding and optimizing costs:

  • You won’t need to recruit, interview, hire, train, and support an agency responsible for your product development. 
  • You can nearshore a specialty agency to save money when compared to in-house teams. 
  • Risk reduces as you can neglect the costs of office rental, equipment, and employment contracts. 
  • Communication with a nearshore partner agency improves with time zone proximity.

Software House Cons

Some providers, however, involve a few slight risks to your project if they have a high turnover or limit their availability:

  • Decreased efficiency possibly harms projects when nearshore team members leave and get replaced. 
  • Those who don’t work on a fixed rate (guaranteeing hours for your project) could increase costs and lack availability. 
  1. Once you’ve measured the pros and cons of software company types, turn to your organization for insight: What goals, needs, and resources do you require?

3. Understand Differences and Create Custom Software

The custom software development companies you shortlist and hire should depend on your product, goals, resources, priorities, and acceptance of risk. Getting to know your software developer and knowing the advantages and disadvantages of these types prepares you to make the smart choice. 

For example, if you want to bring a product to market quickly at a lower price without compromising quality, you’ll hire a nearshore agency with knowledge of your niche and customer. 

Learn how we at Vantageio create custom software solutions with a team of experienced tech gurus. We offer local architects and managers with developers nearshore for our cost-conscious clients. 

Make your ground-breaking idea crystallize, and get a free consultation with a software expert

Samuel Morhaim

Samuel Morhaim

Samuel Morhaim is Founder and CEO of Vantage IO which creates custom software, web/mobile applications and cloud solutions in addition to staff augmentation, consulting and advisory services. Samuel has over 20 years of experience developing software for startups and enterprise clients. His experience includes Healthcare IT, InsureTech, Marketing Automation and Rapid Application Development strategies.

About Vantage IO

We create custom software, web/mobile applications and cloud solutions for startups and well establishes companies looking for quality and performance.

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