Custom Software Development Company Hiring Guide
As business processes become increasingly technology-driven, small to midsize business owners and IT managers are learning that off-the-shelf software solutions are not always sufficient to meet their business needs. While some software features might not meet their organizations needs, others may face challenges in integrating the new platform to the other software in use. In modern settings, there is an increased demand for customized software solutions. However, not every organization has the in-house expertise or resources to create these solutions.
While businesses can use custom software development tools, there are additional benefits to partnering with custom software development companies. This guide will explain what custom software development companies do, what services they offer, the benefits of partnering with them and what you should expect in terms of pricing structures, and how to decide if outsourcing is a better option than using an in-house software solution.
What is a custom software development company?
Custom software development companies address their clients’ needs and business challenges with custom built software solutions. Using a client’s specific business needs and requirements as a guide, custom software developers design, develop, and maintain a tailored solution that can be integrated into a client’s existing software stack. Small-and-midsize-business owners can turn to custom software development services when an off-the-shelf software solution doesn’t provide the necessary functionality, or isn’t available off-the-shell at an affordable rate.
What do custom software development companies do?
Custom software development companies’ services are designed to support a range of development tasks.
Software development
Software development services are focused on building a custom software platform from scratch, based on client business needs, and maintaining it upon release. The software development process includes building, testing, and modifying the software. This service is fully customizable, and the software development agency can be tasked with developing a platform that suits the client’s audience and reflects a specific brand image.
Mobile and web application development
Some developers are skilled in the development of mobile and web-compatible software applications. They are well-versed with the essential tools needed to leverage the unique features of mobile devices and create more personalized user experiences. Whether the agency supports building a web-based platform or a mobile application is dependent upon the client’s business needs.
Cloud computing development
Development agencies can help build solutions that allow clients to process and store business data in cloud-based data storage solutions. Agencies can also either set up and maintain data centers or facilitate the use of third-party cloud-based data centers, and assist clients in transferring all company data and computing to these cloud-based solutions.
Digital transformation
Digital transformation services use technology to automate business processes and create a digital environment for a client’s workforce. Software development agencies combine technologies such as artificial intelligence, machine learning, and robotic process automation with a client’s day-to-day operations to automate and simplify routine and recurring tasks such as accounting, customer support, project management, and supply chain management.
IT consulting
Software development companies offer IT consulting services to businesses that have an existing software application that needs improvements. IT consulting services usually include product road mapping, upgrading current products, and, in some cases, redesigning a product from scratch.
What are the types of custom software development companies?
Software development agencies that offer a full range of development services will often maintain a team of specialists capable of creating software solutions that support the full range of business processes. Alternatively some agencies do specialize in specific types of development. This can include:
Mobile application development: Some software development companies specialize in mobile app development. If your business has a mobile-friendly audience, you can work with a mobile application development agency to create a custom mobile app that makes customer engagement and interaction efficient for your business.
eCommerce software development: Some software development companies help create apps and websites dedicated to eCommerce businesses. If your business consists of fast-moving goods or products, hiring an eCommerce software development agency can be beneficial, as they can help you set up an online store to organize and track all your products digitally.
Software-as-a-service (SaaS) development: SaaS development companies help create custom software for any business, keeping their industry and intended audience in mind. SaaS development prioritizes user experience and focuses on creating intuitive applications that are easy to use.
Operations management software (OMS): OMS software developers create solutions that streamline business operations, workflow management, manage logistics, and create a cohesive mesh through which teams can effectively communicate and collaborate.
Cybersecurity software developers: There are a number of industry-specific cybersecurity regulatory requirements that businesses need to adhere to in order to remain compliant and reduce liabilities. Custom cybersecurity solutions protect client data and include customized firewalls, antivirus protection, encryption, intrusion detection, and other forms of security that off-the-shelf solutions might not sufficiently cover.
Other industry specific developers: There are software developers that specialize in very niche industries, often ones that are extremely regulated or require demanding technical processes to manage. The goal of developers when building industry-specific solutions is to ensure the software solutions most effectively meet the unique needs of that niche.
Software development methodologies
It takes very strict discipline and knowledge of proper project management standards to successfully bring a software development project from concept to deliverable. There are several standard project management methodologies in use currently by developers to manage and coordinate projects:
Agile development is an iterative developmental approach that includes Scrum, extreme programming (XP), and feature-driven development (FDD). Agile minimizes risk and flaws in the final deliverable, allowing the team to focus on developing and incorporating new features and functionality.
Waterfall development follows a linear sequence of phases: requirements, design, implementation, verification, maintenance. As a slower, sequential development methodology, Waterfall is useful for short-term projects.
DevOps methodology combines a “dev” phase (coding, building, testing, and deployment) with an “ops” phase (monitoring and ongoing improvement planning). DevOps, and the related DevSecOps focused on security best practices, helps developers push software live faster and still allow for bugs and flaws to be addressed.
Rapid application development (RAD) is a four phase process that produces a high-quality, low-cost system: requirements, user design, construction, and then a cutover phase that prepares the product for launch.
What are the benefits of hiring a custom software development company?
Software development is a discipline that requires a high degree of technical expertise and extensive resources to execute properly. This is especially true of some of the more complex types of software required to support certain business processes. Such complexity isn’t an easy undertaking for small to midsize businesses with limited to no in-house IT resources, and in these cases, hiring a custom software development company can be beneficial.
Speed up the software development cycle
The benefit of planning and developing a software solution from the ground up is that the development team can ensure the tool being built only includes the functionality and features that meet the client’s needs. Eliminating any overdevelopment and following established development methodologies, such as Scrum or Agile, helps speed up the software development process, ensuring the agency can adhere to the agreed-upon timeline for delivering a custom software platform from scratch. This approach ensures the client can achieve its goals quickly and efficiently and is able to maintain business continuity through the new platform.
Provide future-focused scalable solutions
Businesses need software solutions that are capable of growing alongside their changing needs. Software developers can address this need for scalability by including the ability to scale the number of users, the volume of data that can be managed by the software, and the amount of traffic and user interaction the software can handle. Companies can work with software developer service providers to create a tailored design capable of scaling to meet future requirements.
Create customer-focused applications
Off-the-shelf software solutions and Software-as-a-Service (SaaS) products often come with a slew of features that the buyer may or may not take advantage of. If a purchased or subscription-based, ready-made solution is not up to the buyer’s expectations or standards, there is a risk of losing out money, time, and prospects. Partnering with a software development company can result in a solution that only includes the exact features and functionality necessary to help the app meet the client’s target audience preferences and prioritizes the client’s overall needs and goals.
Better integration with legacy and third-party apps
As small-and-midsize-businesses grow, their technology and software stack evolve in-line with the organization’s needs. Over time, existing software solutions become known as legacy products. Legacy software is often outdated and lacks ongoing development support, but serves a critical business function and has become inextricably enmeshed within the organization’s workflow. There will reach a point that it will become difficult to integrate new off-the-shelf and SaaS solutions into the existing infrastructure due to a lack of compatibility or integration support.
Software development agencies have the necessary experience to craft customized software solutions that can either supplant existing legacy software or act as a bridge between legacy systems with the necessary integrations included to create a seamless user experience.
Ongoing, dedicated tech support from developers
In establishing a relationship with a software development service provider, there’s often a provision included with the final product that ongoing development and maintenance can be provided under a fee schedule. This ensures that the developers familiar with the product at a technical level will be able to assist in the face of any future software glitches or bugs. Moreover, if future growth necessitates enhancements or additional features, the client can easily engage the agency with the task of adding these elements, and then resume the partnership at the management and maintenance level. Post-launch support comes in several forms:
Technical support in the form of dedicated support teams or system administration support, often contracted as full-time in the first few months following launch to address issues that arise.
Content creation and upkeep plans can support ongoing content marketing campaigns executed through a particular piece of software or application.
Customer and client training in the form of on-site training or pre-made training videos.
Ongoing maintenance and updates based on customer feedback and user experience.
Data management and back-end hosting and support services.
What is the cost of hiring custom software development companies?
While pricing itself is determined by the market saturation, the agency’s location, and service demand from local businesses, software development agencies provide their services to clients according to a number of pricing structures.
Fixed price
Agencies work with the client to lay out small projects with agreed upon timelines, established development methodologies, clearly defined specifications and deliverables, and expectations of communications. These projects are given an agreed-upon fixed price from the start of the engagement, and are often sought out by clients with a very strict budget.
Dedicated development team
This pricing model is akin to hiring a staffing company, in that the agency supports a need on the part of the client to rapidly expand an existing software development team with additional developers. The pricing in this model is based on the monthly salaries of the temporary staff, without having to worry about the hiring and onboarding processes, or training of new staff.
Milestone-based pricing
During the engagement phase, the client and service provider can establish points throughout the project that can be considered triggers for portions of the agreed upon payment. Milestones can be specific functions or features of the software, or stages in the development process. This approach helps manage risk and provides a flexible timeline for the project. It is best leveraged with clients where there is an existing relationship.
Hourly or time and material (T&M) pricing
Agencies can take one of two approaches to hourly rate models. The agency can charge strictly just an hourly rate based on how much time the developers work on the project, or they can also fold in the costs of any planning, documentation, software licensing for tools specific to the project, and other materials used. This is useful for large, long-term projects without a set completion date, and allows the scope of work to scale with the needs of the project and overall providing more control over the budget.
How to choose the best custom software development service provider
When your company is considering hiring a third-party custom software developer, there are considerations as to whether the provider is a good fit for your business and needs. For example, are they familiar with current software security standards to ensure the final product is secure and compliant with regulatory requirements? Additional consideration should be given to whether they are a good cultural fit for your company in terms of communication standards and business practices. Aside from culture, is it also important to ensure the developer uses established development methodologies and communications methods for ensuring the final product can be scaled and maintained in the future?
These major considerations become the basis for the steps leadership should take in deciding if a service provider can meet the needs of the business.
Assess the pricing model. Developing a custom software platform is costly. If budget is a concern, it's prudent to analyze your shortlisted agency's pricing model and discuss the cost beforehand. Based on how much you can spend and the complexity of your project, choose an agency that offers the services you need within the planned budget.
Conduct a background check before finalizing any agency. Have your shortlisted vendors developed software for your industry? Have they worked with a competitor before? Do they understand the audience you serve? As a client, these are some questions you should ask the agency before signing a contract. You should also speak to previous clients and read reviews online, if available, to understand the agency's work ethic and get a sense of their business.
Ask for a proof of concept. Before the agency starts working on your project, ask them to provide an outline of their processes and requirements. Before they start the project, an ideal software development company should be able to provide a proof of concept that shows how feasible your software idea is from a technology standpoint.
Should I use custom software development companies or custom software development software?
Ultimately, the decision as to whether you should be leveraging a software development program in-house to create your own custom software solutions comes down to whether or not you have the expertise and resources in-house to support an undertaking as complex as creating a piece of software.
The advantages of using a development software in-house include:
Increased efficiency and productivity, as most software packages have features such as predictive code generation, debugging, and project management.
Ability to collaborate with stakeholders through the software development interface and maintain an established development methodology.
Increased control and customization of the final product because you’re tailoring the tool to your needs.
Flexibility in the project timeline and control over the investment of resources into the project.
However, in addition to the benefits we outlined above, perhaps the most important factor in going with a custom software development company is that you gain access to a team familiar with modern development methodologies. Methodologies are ever-evolving, but leveraging the right one for your project and organization through a service provider can be the difference between a successful launch and a software solution that never sees the light of day. The major categories of methodologies include:
Agile development minimizes risks when adding new features and functionality. It is an iterative process that builds software solutions in stages to minimize bugs. Agile includes Scrum, extreme programming (XP), and feature-driven development (FDD).
Waterfall development is a linear model following a sequence of established development phases: requirements, design, implementation, verification, maintenance. The team must complete each phase before the next can be initiated. It is a much slower development process.
Rapid application development (RAD) involves a process resulting in a high quality system with lower costs overall. It involves four phases: requirements, an iterative loop of user design and construction phases to ensure the product meets requirements, and then a cutover phase that prepares the product for launch.
DevOps development is a software development life cycle approach that creates a culture around the support of the software to ensure it’s constantly evolving to meet the needs of the user. During the “dev” phase, the product is coded, built, tested, and released for deployment. Throughout the “ops” phase, the product is deployed and used, monitored for performance, and then the results of the monitoring lead to plans for improvement. This approach is designed to improve your time to market and reduce the lead time to address bugs or flaws.
The decision of whether to use an in-house software development tool or to contract your project out to an agency comes down to expertise and availability of resources. If your small to midsize business doesn’t already maintain a highly skilled in-house team of developers to create custom solutions for your organization, chances are an agency will be able to meet your needs most efficiently.