Criteria for choosing the right software development company and avoiding project failure


Business owners need in-house resources to build software for the company. If there aren't any, they need the right software company for custom-built software. This custom-built software helps companies streamline their process. It also helps them expand in scale or size.

This article will help entrepreneurs choose the best software development company. It will also highlight elements for companies to focus on when acquiring new projects. And, most importantly, avoiding failure. One of the most detrimental effects of choosing the wrong company is project failure. So, avoiding loss becomes the motivating factor behind choosing the right fit. The way you approach it, your criteria, will ensure you don't land into any problem.

There was a study conducted by Geneca on project failure. The study showed that 75% of business and IT professionals admitted their projects were "doomed" right from the beginning. There are many reasons behind project failure, which we'll make a list of later in the article. But first, we'll discuss the criteria for choosing the right software development company.

Software development project

Prerequisites for choosing the right company

Before choosing the company, you need to have a clear understanding of where you want to take the project. Itemize your customer's needs to translate into project objectives. If possible, make your wireframe diagrams if your product has a user interface. Make a plan for what you want to achieve within, say, three months. Then make a plan for what you want to accomplish in twelve months.

Understanding customer requirements and conveying it to your chosen company will ensure your success and customer satisfaction.

Criteria for choosing the right company

Display of web applications Research reviews of previous clients for your vendor. Verified client reviews will give an insight into the company's skills and credibility. Don't hesitate to ask for more references if there aren't enough client reviews online. If you need more information, you can call previous clients and ask about their experience. People are usually helpful, and what's there to lose in making a few extra calls anyway? Nada.

Finding a company within a budget is essential. But it's better to reduce scope than to go with someone who is giving you the cheapest rates. The company will most likely be squeezing themselves. And then you will end up with a low-quality product.

Look for a company with business expertise. Talk to the leadership team. Determine whether their specialization areas coincide with your business values for your customers.

A good communication process will ensure success from the start to the end of the project. Communicating effectively throughout the project will help resolve issues without causing inefficiency. Communication skills are as critical as technical skills when outsourcing a project manager.

Using web applications

Make sure the team you hire is capable of delivering an exceptional user experience for your customers. Pay attention to the software development company's resources. The right resources will ensure excellent quality products for your customers. Products they've delivered before will help you gauge the user experience they provided to other companies.

Ask detailed questions about the company's policy for quality assurance. It will determine if there's a good plan for testing during the development process. No matter how good a developer, building software that's free of bugs is practically impossible. So, comprehensive testing will help build the right product.

The security and safety of the project are very critical. Ask detailed questions about it. Make sure there's a plan for detecting vulnerabilities early during the development process. Detecting these vulnerabilities will ensure the user doesn't run into trouble later on.

Establish the delivery time right at the start of the project. Project delivery within your time constraints is essential. Look for words during your conversation that mention "scope creep". Scope creep refers to constant changes in project management. Are they willing to say no? Or will they say yes to whatever you ask without considering how they will deliver it within your deadline?

Discuss software configuration, customization, maintenance, or back-up services at length as part of the After-Development Support. Running into issues after the project delivery is expected, so make sure you cover all bases before signing the contract.

Working on a software development project

Reasons for Project Failure

There's a large number of projects that fail every year. Rushing into development without determining the project scope may cause trouble later on. Assigning the project to an incompetent software development company is another factor behind its failure. So, you must follow the criteria and choose the best fit when outsourcing the task. Here are the most important reasons for the loss of a software project.

Ambiguous objectives for the project will guarantee its failure. It's important to define realistic goals before setting out to achieve them.

Lack of project clarity causes damage to the project because managers weren't clear about goals and objectives. The team won't fulfill customer demands if they aren't clear on what to deliver.

Communication is critical. Lack of communication poses more harm than people tend to expect. The right tools for communication will go a long way to ensuring the success of the project.

Lack of time or unrealistic expectations for deadlines cause a rush for the team. It will most likely produce a low-quality product because the team had to work hastily. Make sure you enough time for planning and executing.

Computer screens with programming code

Scope creep refers to uncontrolled or continuous changes in project management. Before you know, you end up continually fixing or tweaking one feature or the other. The time adds up, and the project scope goes way out of hand. Allocate the time and resources right from the beginning, so you don't end up with a failed project.

Unrealistic or too many expectations have caused many projects to fail. Make sure you understand what your team can deliver in a certain amount of time, rather than what should be delivered. It ensures completing the project successfully.

If there is no plan for proper testing of the project, there may be too little or no testing at all. Lack of testing will lead to unhappy customers if your project doesn't work. Enough testing will need ample time allocation, so don't underestimate it.


Selecting the best software development company to match your specific needs is crucial. There are many factors to keep in mind before you make the decision. Hopefully, these tips will help you in the decision-making process.