The Ultimate Guide To Hiring A Software Development Company in 2021

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With the world inclining towards digital and new tech trends digitalizing the market, businesses have a pressing need to go digital. They need the resources to build software, maintain it, keep it bug-free, and scale it as per user requirements. Most organizations cannot afford to hire a competitive in-house team of software developers. Cost, time, regional talent, the reasons can be many. But the truth is, many companies hire software development companies to handle the tech part of their business. 

The most crucial part of any outsourcing venture is hiring a software development company. It can be draining. But hiring the right company determines your future with software development. The right company means you get your dream software built within the committed time and budget. A wrong decision hiring means you are stuck with a sub-par company where you have to compromise with everything - quality, time, increased costs, IP protection, and much more. 

So, if you plan to hire a software development company in 2021, here is a quick guide to get things sorted for you. 

Outsourcing Models For Software Development Company

For us, it would simply be a software development company, but there are different hiring models that you should be aware of before hiring. You need to know the model that is fit for your software development needs. Here are some of the models that companies choose when hiring a software development company for their project.

Also Read: Prosperity Across The Seas - When Do You Choose To Outsource?



Such a partnership or model takes place when the company that you choose is in the same country or region as yours. You can visit the company whenever you want and have an in-person discussion with them. While quality assurance and control are a plus in such firms, there are cons as well. There might be limited technology stack or talent and most of the onshore firms work for a higher budget but you have the freedom to visit anytime and monitor the progress. 


Offshore type of external assistance is when the company you choose for your software development locates in an offshore location. You outsource software development to the firm which is sitting in another country. The pros of hiring a software development outsourcing company are that it costs way less than the onshore company. You can choose to outsource to India, Ukraine, Malaysia, or any other country with higher tech talent. The time zone difference even offers round-the-clock work. But the distance may cause some gap in communication & collaboration which can be bridged with remote working tools. 

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This is another type of outsourcing or choosing a software company. This is an in-between solution for those wanting to outsource but scared about going too far. Nearshore means joining hands with a software development company that is in a neighboring country and lies relativity within your time zone. One can expand the scope for a talent hunt without going too far with nearshoring. The cost of outsourcing to the nearshore company is lower compared to onshore but slightly higher than offshore. 

Top Product Development Trends In 2021_Remote Product Development1


A new model that is taking shape in the outsourcing universe is called hybrid. They offer a mix of offshore and onshore to ease communication/collaboration while offering lower costs. In such a case, the accounts manager or PM is in the same country as the company but has their main development team or tech experts sitting offshore. It lowers the overall cost of development similar to outsourcing but also offers to minimize any communication gap. 

These are some common models that companies can look for when choosing their software development partners. They need to check all the major factors to ensure they have chosen the right model. 

Also Read: Outsourcing 101; 5 Critical Factors For Outsourcing Success


What To Look For When Choosing Software Development Company

When you are choosing a partner for your software needs, there are different factors that you need to take a look at. With these factors in mind, you will not just have a clearer idea of what you are looking for, but also find the best software development company for outsourcing your project in 2021. 

#1. Experience They Have

This is one of the first things that any company should look forward to when choosing a partner for software development. The more experience a company holds, the more projects they must have delivered. Experience in years is not the only thing to consider. You need to consider the number of projects they have completed to have a better idea. 

#2. Technology Stack 

One of the most important reasons why companies look for an external software development agency is because they need expertise in technology. They should have a technology portfolio with the latest versions and frameworks that can elevate the level of your software. You should be able to find technical expertise that is missing in your local region to ensure you are not compromising on anything. Check out their technology stack, what certifications or solutions partner certificate they have achieved to know their level of expertise in the said technology. 

#3. Engagement Models

You don’t want to have any regrets after outsourcing your software development considering the loss of control or your engagement in the project. To avoid the same, make sure to check the company’s engagement model. You need to check what are engagement models they offer. You may need to hire a single developer from them, get a full project outsourced from them, build your dedicated software team of developers. 

#4. Previous Projects

Checking the work portfolio of the company is imperative. This will tell you whether they are the right fit for your software development work or not. Analyze your idea and check out the types of software the company has built. You need to scrutinize the company on the following parameters: 

  • Size: If you have a large software project in mind, the size of the organization you want to join hands with matters a lot. The company should have the required number of developers to keep up with your development work. 

  • Technology: There are different frameworks and versions that can be required for building specific features or functionalities of your software. Ensure that you have checked the technology stack to make sure you need not compromise later. 

  • Solution Type: The next important factor is the type of solution you are building. It could be a web app, website, mobile app, enterprise application, DXP, CMS, or any other type of solution. Make sure the company provides the required solution. 

#5. Budget Bracket

The next important factor to check out when looking for a software development firm is their budget bracket. Most companies share the budget bracket within which they work. You can search for them on Clutch to check their budget bracket. You can easily find the company that will provide you the software within your budget and help you save money.  

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#6. Reviews & Testimonials

This is undoubtedly one of the simplest ways to find out about the company and its promises to the client. There are several sites where you can find reviews like Clutch or even on Google. This is an easy yet effective way to know what other companies have to say about their experience with the firm. Apart from that, check out the company website to find testimonials from their clients and it will offer a deeper insight into how they work and engage as well. 

#7. Other Things To Look At

While those were the main factors, there are several other smaller things that you should be looking at to ensure you are joining hands with the right software development company. 

  • Go through the software development company's website and analyze the quality and attention-to-detail on different pages

  • The response time of the company during the initial conversation

  • Quality of the content on the website blog, guides, or other resources

  • The social presence of the organization and their company culture

  • Check out their previous work and the type of projects they have undertaken

  • Reviews on review sites and the testimonials left by their clients and even the employees on job forums

  • Discuss the IP rights and protection clauses or non-disclosure agreements they sign to protect your ideas and intellectual property

  • Make sure you are getting access to the code via a control repository on the cloud or another platform

Platforms To Find The Best Software Development Company

Finding the right company for your software development might be tricky. However, there are several platforms where one can find the best software development agencies filtered by your location, budget, or any other factor. Let’s find out about some platforms where you can start your search. 


No matter what your tech requirement is, is the best platform with hundreds and thousands of companies listed in its network. You can find companies for software development, mobile app development, web development, custom software development, and much more. Not only can one sort companies by sponsored ranking, but they can also find a ranking of companies based on Clutch rank, verified, number of reviews, or alphabetical order. 


Apart from that, one can use several filters like location, hourly rate, specific services, industry, frameworks, programming languages, and much more on this platform. 


One of the best platforms to look for the best software development agency would be Google, the search engine giant. All you need to do is type in the keyword ‘software development company and that’s it. You will get a list of the best companies in your region. You can also type in long-tail keywords to be more specific like your region, for outsourcing, etc., to get more specific results. 


Curated Lists

When trying Google or even Clutch, you may come across hundreds of software development companies, which might easily overwhelm you. This is where lists curated by different companies can come in help. You can find several blogs on company sites and on Medium that write about the top ‘10 software development companies’ and similar listicles. There are many IT websites, social media platforms, and other similar platforms where one can find such curated lists of 5, 10, 15 top software development companies. 

Also Read: Top 10 Software Development Outsourcing Companies For 2021



LinkedIn is hands down the top professional networking platform. Every organization must have a LinkedIn company page. If you are looking for a custom software development company, you can simply search the same on LinkedIn search. You can be more specific in your search terms to get better results. 


Just search software development and press enter. On the left side, select Companies under the drop down. And you will get a list of software development companies. You can add extra filters for locations, industry, company size, and many more.  


Like Clutch, there are several directories online where one can find information about software development companies. Some of the top directories that one can look for are:


There are no questions whose answer one cannot find on Quora. Anyone can ask a question on Quora and have industry experts answering the same. If you have any specific questions like “Best company to build a web app in $20,000” or are simply exploring options like “Best software development outsourcing company”, you can find apt answers. Search it on Quora and you will get the best answers. 

Seminars & Conferences

Once the pandemic is over and everything gets back to normal, there will be seminars and conferences like before. However, till then, there are online seminars and tech conferences being held where one can find new companies. 

Tips For Seamless Hiring

Outsourcing software development has been helping businesses like Whatsapp, Slack, Alibaba, and many others become success stories. And your hiring plays a determining role in your outsourcing success. So, here are some tips for the seamless hiring of a software development company. 

Define Your Needs

Before starting out, make sure that you have defined your needs. This means you are clear with your idea and know what type of engagement you want. Make sure you are clear with your requirements to define the same to the external company. 

Document The Requirements

The next important tip is to document the needs. This means you have carried out market research around your idea and have documented the findings. Moreover, you have a documented workflow for the software development, features you want, platforms you want to span, etc. 

Entrust Wisely

The next important thing is to entrust wisely. You can share a little bit of your idea with the external company but before you have signed an NDA, do not share the complete product idea. 

Perform Due Diligence

Due diligence when outsourcing is a must. Make sure you have performed complete due diligence of the external company before making a hiring decision. Do not hurry to the decision. Take your time and research about the company and make smart hiring. 

Get References

When in conversation with a software development company, make sure to ask for references and get to talk to them. This will help build greater trust in the company. 

Getting Started

Joining hands with an external software development company means reducing the time to market and lowering the cost. However, you need to be wary of your needs and choose a company that has a track of delivering quality 

Classic Informatics has been one of the trusted software development companies in India with over 2000 successfully delivered projects. We have been assisting startups, SMEs, enterprises, and businesses of all scales with their software requirements. One can get single developers, build a dedicated software team as an extension to in-house, or outsource the complete project. We have been appreciated for our quality of codes, time commitment, and the cost-effective services that we offer.

outsourcing due diligence

Topics : Software Development

Swati Sharma

Written by Swati Sharma

Swati Sharma, a writer by day and an avid reader by night, works with Classic Informatics, a leading web development company in India. Owing to her passion for her profession, she loves to stay updated about the current & emerging trends in the IT industry.

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