How to choose a software development agency in 2026?
- April 22, 2026
- Development
Table of Contents
Choosing a software development agency isn’t just about finding a contractor, it’s about choosing a “collaborator” for your business for the coming months or years. A mistake at the start can cost not only money but also lost market share.
So, it makes sense to invest considerable time and effort in searching for and discussing with a potential contractor. This article won’t go into detail about the contractor search itself, it’s written more as an aid in evaluating and selecting a specific contractor you already have in mind.
Here’s a step-by-step guide to help you weed out incompetent contractors and find your dream team
Price, Speed, and Quality (the three main parameters). These are the main criteria for evaluating any work, including software development. We’ll use them as a basis for our discussion. But before we get to these three parameters, I’ll outline some related points.
Clarity
Before evaluating anything, you need to understand what you want and what you’re ultimately evaluating. In development, everything starts with an idea, then a technical document describing the idea, then the design, and only then the development. So, if the idea isn’t described, or is described poorly, then what high-quality, fast, and cost-effective implementation can we possibly expect?
Communication
These three key parameters won’t be met without a good understanding on both sides. Development isn’t 100% coding; it can be more than 50% communication, mutual understanding, and only then comes implementation (design, coding, etc.). No one but you will understand your needs better, but not everyone can understand you through leading questions, discussion, much less write a good technical document describing your idea and how it should be implemented technically.
Ultimately, communication is critically important. To check this, schedule a meeting, communicate, and get answers to these questions:
- Am I being understood? Can the contractor rephrase what I’m saying in their own words?
- What does the collaboration process look like in detail? What will I need to provide? What is expected of me?
- Who will be responsible for the project’s outcome?
- What if I want to change something about the project after we’ve discussed the details?
- What if something goes wrong? Do we have a common understanding of the risks?
- Will there be any guarantees?
- Will we ultimately be able to work together?
- Ask other questions to verify the person and the company.
And now the three key parameters
It’s almost never the case that the client will get all three parameters on their terms (to their advantage). It’s realistic to choose two of the three. It’s better to look at them this way: if I choose high quality and need it quickly, I’ll have to pay a lot, or if the client wants a lower price, I’ll have to sacrifice either quality or deadlines. Put yourself in the contractor’s shoes: would you do something cheaply if you have 10+ years of experience, are confident you can do it, and have a lot of work to do? I think the answer is obvious.
Price
No matter what anyone says, price is not a simple parameter, and it’s normal for it to vary, especially for complex projects. You can read about the different types of prices here. Choosing based on price, the cheapest contractor, is not only dangerous, but can and probably will end up costing you more. But the most expensive doesn’t always equal the best. So what should you do with price?
Roughly estimate how much time your idea/task will take. How much are you willing to pay? How much are you absolutely not willing to pay? For example, after you’ve described your idea, ask the neural network how much time and money it will cost. For example, if you realize it will take a month, and the market in your country estimates that a developer’s monthly salary is X, then the starting price is somewhere around X x 2, i.e., twice the average developer’s salary (including taxes, the contractor’s earnings, and other expenses). If you’re offered a price significantly lower than the developer’s salary, then it’s worth considering a different contractor. We understand that every business strives to make money, and why and how they operate is that they can even survive for a month on a developer’s salary, even though their expenses are much higher than those of a single freelancer.
And you don’t always need to jump right into something big. You can start working with a contractor by writing a technical specification or a small task. This is easier to estimate, and the losses will be minimal, even if you decide to find another contractor. Only then should you move on to the entire project. There’s a reason they invented the probationary period.
Speed (Deadlines)
If you want clear deadlines and to ensure your plans and promises to anyone aren’t broken, you can’t do without detailing the idea/task. How can you estimate an idea that isn’t defined in detail? Yes, but just as vaguely, or at random. For a preliminary estimate, it’s enough to get at least a range of 1-2X. And after describing the idea (drawing up a technical document) and meeting with the contractor for a few times, you can ask for the final price.
But If a contractor immediately quotes a final price without asking any details or delving into your idea, you should consider whether it’s worth working with such a contractor.
But, like price, deadlines can’t and shouldn’t always be considered so straightforwardly. Other pricing approaches are discussed here. Different approaches can be used, for example, by the hour, if you’ve already worked with the contractor and just want the tasks completed without much arguing or bureaucracy. Or, alternatively, they estimate how much you earn or will earn, and the contractor does everything possible to reach this agreement as quickly as possible.
Ultimately, if deadlines are important to you, and especially if you estimate how long it might take and want to get it done even faster, then it’s realistic that the price will also increase, perhaps even proportionally to your reduced deadline.
Quality
Regarding quality, things are more complicated. The client and the contractor may have completely different understandings of quality. The client may think their idea will be implemented without a single error, even in unclear situations in the developed product, while the contractor has a prototype in mind that only works under ideal conditions.
It’s often more realistic to expect, especially at the initial stage, that the system simply works, and even then, not always. Achieving a perfectly working product is practically impossible; consider the mistakes you personally remember from development giants.
For example, you could agree with the contractors to define some key metrics for the product’s performance, and to ensure that these metrics are met, say, over the course of a full year.
Also, with the advent and use of neural networks in development, the quality of written code will likely decline (human laziness throughout the process, deadlines, developers’ reluctance to understand neural network code, etc.).
Company Parameters
The following parameters should also be mentioned below; they are also important, but I don’t think they’re as important as those above.
- Ratings. Real links. Rating sources. Sometimes ratings on a contractor’s website don’t reflect reality. It’s important to analyze them. Look at the original source, pick one at random, and ask about that client at a meeting, etc.
- Location. Although a physical meeting can reveal even more about the contractor, and if possible, it’s probably better to look for a contractor closer to you. But with the development of the internet, online meetings have become accessible. If communication is acceptable to you, and other aspects described in this article are also discussed, you can agree on a time zone for calls, for example, and discuss and work on other matters online.
- Technologies that will be used to implement your idea. If you’re not a technical person, you can invite a friend to a meeting, consult with a neutral party, or ask a neural network.
- Do some online research. Ask the neural network about the company, search it using a search engine. Is the company registered, what links lead to the company’s website, etc.
Summary. Steps:
Understanding. Understand what you want. Develop your idea as thoroughly as possible.
Parameters. At least roughly determine the budget, deadlines, and quality parameters.
Reference. Research the contractor online.
Verification. Check reviews.
Communication. Test communication with the contractor by asking questions.
Test task. Start working with the contractor by writing a technical specification or a small task.
Contract. Read the final contract (text) and discuss any unclear points with the client.
About us
For example, at ODAXY Labs, we try to approach discussions openly and clearly. When I meet with a client, I try to explain everything in simple terms, even complex technical topics, especially when the client is not a technical person. I delve deeply into the client’s problem/idea and am not afraid to ask questions, even those that may seem obvious but in fact greatly impact the entire project/idea. We have a designated person who leads each project, and they are responsible for the results (ultimately, the company bears responsibility, of course, but we want to make sure it’s clear to the client and prevent employees from passing the buck). We provide certain guarantees, which we discuss. We are open and strive to answer any client question and help them, even before they pay us.
We’ve been in business since 2020, although many of our vendors’ development activities began long before that. You can easily find numerous links by searching for “ODAXY Labs” or by searching for “neural network.” We’re also a member of Astana Hub.
