If you are looking for an enterprise software or web development company to create a full enterprise software solution or provide enterprise application development services that meet your specific needs and requirements, read this article to find out how to make an informed decision.
Before choosing a custom software development company, there are a few things to consider, such as:
- industry knowledge,
- cooperation models,
- pricing models,
- contracting models,
- added value.
Obviously, the first thing that an enterprise software development company needs to have is the ability to deliver the custom enterprise software solutions and other enterprise software development services that you need. This means, first of all, having the top enterprise software developers with the right skills and experience. A thorough understanding of the business needs of your industry is also valuable.
To assess the industry knowledge of a potential software development partner, you can check their portfolio for previous projects, case studies, testimonials, and references. You can also ask them to provide you with some examples of similar projects that they have completed or are currently working on.
Another important factor that you should consider when choosing a custom software development innovative digital solutions company is their cooperation models. There are three main cooperation models that enterprise software development companies can offer:
A dedicated outsourced team
In this model, the client is taking on the role of product owner or project manager, while the custom enterprise software development company provides a complete dedicated team of software developers with all the necessary roles and skills covered, taking on itself all of the risks connected with workflow, performance, and results.
In this type of outsourced software enterprise application development process, software development companies “lend out” individual software developers to work in their clients’ teams, following the same rules and bound by the same responsibilities as their clients’ own software engineers. This provides greater adaptability and cost-effectiveness in managing projects, while allowing the customer more control over the software development process and enterprise application integration process.
A hybrid outsourced team
With a hybrid outsourced team, the client can mix outsourced staff with their existing software development team to supplement it with the skills and technology expertise they need. These are the two most popular hybrid solutions:
- Have each role on the design team filled both by one of the client’s employees and by one of the software development company’s people.
- Have the roles on the team clearly delineated between internal and external employees.
When outsourcing work to software development companies, there are typically two contractual models to choose from: a time and materials (T&M) contract or a fixed-price contract.
In a fixed-price model the client pays a predetermined price for delivering the software product, and the software development company is responsible for staying within the budget. This is a more predictable model, but limits flexibility, as enterprise software development companies will not be willing to change the specifications of a product without renegotiating the price.
With a T&M contract, payment for services rendered is based on the amount of time reported by members of the project team. The client is also responsible for covering the cost of materials such as software licenses.
A hybrid solution is a quoted time and materials contract in which clients only pay for the work that has been completed, based on two key elements: payment for work done by the project team rather than for the time spent on doing the work, and a carefully planned and transparent process for building the task backlog for each project iteration to ensure high effectiveness.
Work with an enterprise app development company should be preceded by the signing of a contract. A good software development outsourcing contract for enterprise apps should come in the form of a framework agreement. This type of agreement defines the general terms and conditions of cooperation, as well as all the processes and procedures that will be subsequently applied to the work done by the enterprise app development company under this agreement.
A contracting model is a key element of an enterprise software development services outsourcing contract. It should clearly define what the acceptance terms and payment criteria are for the work done by the enterprise software development company. Key processes and legal elements of smart contracts should be included in the framework agreement to ensure that the whole relationship with the enterprise software development and outsourcing provider runs smoothly.
Finally, added value is an important factor to consider when choosing a custom software and mobile applications development company. A company that can make innovative digital transformation software solutions and offer extra benefits beyond their core services can help enhance your software solutions and optimize your business processes. To assess an app development company’s added value, you can check their portfolio, awards, testimonials, certifications, and accreditations.
How to choose a custom software development company—a wrap-up
Outsourcing software solutions effectively to the right enterprise software development company can allow you to focus all your attention on business operations and improving the customer experience. If you are looking for such a partner, you can treat the above article as a sort of checklist helping you to find the best outsourcing partner for your organization.