The 5 Worst Mistakes When Hiring a Custom Software Development Company

The 5 Worst Mistakes When Hiring a Custom Software Development Company

The 5 Worst Mistakes When Hiring a Custom Software Development Company

You can get your business software development work done faster and hassle-free by outsourcing it to a right partner. It is practically impossible to get all your IT and software projects done in-house. It will take a toll on your company’s resources and add costs in new hires. Consequently, farming out your custom software development work makes a lot of business sense as it lowers cost, increases speed to market and leverage specialized talent of the software developers.

No wonder outsourcing is the buzzword in software development circles and is constantly on rise. Still many businesses are wary of the risks involved in outsourcing a project. Mistakes in getting a wrong team on-board for your business’s software development could be unforgiving. A wrong decision could land your business in a soup and cost you big money too. Being aware of the risk possibilities is the key to avoid these mistakes.

One can hire a custom software development company taking into consideration all the risks with careful planning and devising vigilant strategies during the course of the project. You will in fact find it is no rocket science if you could be vigilant and avoid these pitfalls while hiring a software development team.

Let’s look at the possible pitfalls avoiding which will make hiring a custom software development firm less of a daunting task.

  1. Price is not everything

Out of the numerous quotes for your software development project if you pick a firm which has quoted the lowest rates that might not be a sound thing to do. In all likelihood the company charging below the market rates either does not fully understand the project or they might be cutting their profits. They will most probably cut corners sometime during the project development cycle. This will be perhaps purely out of necessity as they will not be making any money. Chances are they lack sufficient experience or skill set and disciplined approach to carry out your project to a tee.

Cheap price generally means poor product or service. Basing your hiring decision solely on low prices might prove disastrous later. Prioritizing cost and ignoring quality would mean you get an application which has a badly written code or is full of bugs. The project itself could be half done with wrong codes and bugs might appear later. Sometimes these may not be apparent at first but with usage the flaws in coding could emerge. It could be extensively delayed as well due to lack of expertise in fixing the bugs and updating the app as per your requirement.

2) Cultural Disconnect

Cultural fit is perhaps an underrated piece of the puzzle of zeroing in on a software service provider. Not finding a team which understands your working style and believes in the same set of work ethos as yours sometimes can be the biggest pitfall in the successful completion of your software development project.

Outsourcing brings people from different cultures and geographies together for a project. This could bring the challenges of language barriers and differences in accepted business norms and ethics. Behaviour, gestures, vocabulary and implicit conventions vary across the globe. Cultural disconnect can lead to communication failure which in turn can be a big hazard for your app development project.

3) Not Owning the Source Code

Source code is a set of instructions to develop the application. It is at best the basic foundation of an application and if you are required to make any changes to the app in future you need the source code.

Very often the source code is included as part of a project deliverable in the custom software development project. If, however, the app developer is unwilling to part with the source code then you can infer some hanky-panky there. The software developer at any point in future can hold you hostage for the modification work required.

You need to have proprietary rights over your application’s source code. Not having clear rights over the source code can put your business at risk from competitors. Rivals can copy your application and you can do nothing about it.

A contract binding the developer to deliver the entire undocumented source code with full ownership also grants you the right to further develop it later with the same software developing firm or any other company. Owning the source code is critical to your business’s security and growth.

3) Unclear Goals and Objectives and Ineffective Communication

Any business thrives on the principle of setting out clear objectives and goals to yield better results and have control over the overall business process. It makes sense to leave the non-core competencies to the service partner while retaining the crucial decision making for the success of a project.

If an organization lacks clarity in vision and mission of their business and specific project goals or is not able to communicate effectively its goals to concerned partners, then it will certainly result in chaos and confusion.

This could be a pitfall that businesses can avoid when dealing with a custom software development company is sitting back and assuming that everything is going fine. The key to selecting a custom software company that best fits your business needs is to keep an unfailing level of regular communication and constant exchange of ideas so that you are always on the same page with your developer partner.

5) Not Getting a Non-Disclosure Agreement

It is imperative to get a non-disclosure agreement signed by your custom software development company to avoid any kind of mess later. Get the developers sign NDA even before signing a contract, in fact, even before discussing the project.

It is essential that you ask the custom software development company to consign all the rights of the software to your company. The last thing on earth that you would want is your competitor copying your idea or you landing up in dispute soup with your developer. If you have a great idea or product it is best to enter into a NDA agreement at the outset. Better safe than sorry!

6) Poorly Drafted Contract

Contractual terms are important, binding and critical to the success of your software development project. A detailed contract with great attention to detail should be prepared safeguarding your interests.

Nothing should be left to speculation in the contract. Ambiguous terms and clauses may result in disputes which may eventually snowball into a run of added tasks and overall cost of the project.

A poor contract management can upshot in unforeseen exigencies, project delays and excessive expense. In present times, with rapid and constant technological changes it is very significant to have an efficient contract management t in place. NDA, ownership of source code are the important terms to be negotiated in the contract. In fact, it should reflect even the tiniest detail to circumvent any issues in the future.

Comments (2)

  • Galyna Reply

    Thanks for the article Nick!
    I totally agree with all mistakes that typically customers do while hiring an outsourcing software company, especially with the “Price is not everything” and “Unclear Goals and Objectives”.

    September 7, 2017 at 2:37 am
  • Daniel Reply

    Pretty article! I found some useful information in your blog, it was awesome to read, thanks for sharing this great content to my vision, keep sharing..

    November 29, 2017 at 7:59 am

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