The statistics are sobering: according to the Standish Group, around 70% of software projects either fail outright or significantly exceed their original budget and timeline. Often, the root cause isn't the technology itself—it's choosing the wrong development partner.
Whether you're building a customer-facing application, automating internal processes, or creating a new digital product, your choice of software development company will shape everything that follows. Get it right, and you'll have a partner who understands your vision, communicates clearly, and delivers quality work. Get it wrong, and you'll spend months untangling miscommunication, managing scope creep, and potentially starting over.
This guide walks you through everything UK businesses need to consider when choosing a software development company—from practical evaluation criteria to red flags that should send you running.
Why Choosing the Right Software Development Partner Matters
Software development isn't a commodity you purchase off the shelf. It's a collaborative process that requires deep understanding of your business, clear communication, and technical expertise applied in the right way.
The difference between a good and bad development partner isn't just about code quality. It's about:
- Understanding your business goals, not just your feature list
- Communicating proactively when problems arise (and they will)
- Thinking long-term about maintenance, scaling, and future development
- Being honest about timelines, costs, and trade-offs
A true development partner acts as an extension of your team. A vendor simply builds what you ask for—whether or not it's the right solution.
At Make IT Simple, we've seen both sides of this equation. We've rescued projects that went off the rails with other providers, and we've built long-term relationships with clients who chose carefully upfront. The difference in outcomes is stark.
Onshore vs Nearshore vs Offshore: Which Model is Right for You?
Before evaluating individual companies, you need to decide on your engagement model. Each approach has genuine trade-offs.
Onshore Development (UK-Based)
Working with a UK-based software development company offers significant advantages:
- Same timezone: Real-time collaboration without scheduling gymnastics
- Cultural alignment: Shared business norms and communication styles
- GDPR compliance: UK companies understand data protection requirements natively
- Easier meetings: Face-to-face sessions when needed
- Legal simplicity: UK contracts, UK courts, straightforward IP ownership
The trade-off is cost. UK day rates are higher than offshore alternatives. But for complex projects where communication is critical, the total cost often works out lower when you factor in reduced rework and faster delivery.
Nearshore Development (Europe)
European partners—particularly in Western Europe—offer a middle ground:
- Similar timezones (1-2 hours difference)
- Strong technical education systems
- EU data protection standards
- Lower rates than UK, though the gap has narrowed
This works well for projects with clear specifications where you need cost efficiency without the challenges of significant timezone differences.
Offshore Development (India, Eastern Europe, Asia)
Offshore development offers the lowest day rates, but comes with real challenges:
- Timezone gaps: 5-10 hour differences make real-time collaboration difficult
- Communication overhead: More documentation needed, more potential for misunderstanding
- Cultural differences: Different approaches to deadlines, problem-reporting, and feedback
- Quality variance: Huge range in capabilities across providers
Offshore can work well for well-defined projects with detailed specifications, particularly maintenance work or projects with stable requirements. It's riskier for complex, evolving projects where close collaboration is essential.
Our view: For most UK businesses, the communication benefits of onshore development outweigh the cost savings of offshore alternatives—especially for business-critical applications.
12 Essential Criteria for Evaluating Software Development Companies
Once you've decided on your engagement model, here's how to evaluate individual companies.
1. Technical Expertise & Portfolio
Start with the basics: can they actually build what you need?
Look for:
- Relevant case studies with measurable outcomes (not just logos)
- Experience with your tech stack or a clear rationale for alternatives
- Depth of expertise in the technologies they propose
- Willingness to show their work and explain technical decisions
Ask to speak with previous clients directly. Any reputable company will facilitate this.
Red flag: Vague portfolios with impressive logos but no detail on what they actually delivered.
2. Industry Experience
A company that's built software for your industry will hit the ground running. They'll understand your compliance requirements, common workflows, and typical user expectations.
This doesn't mean you should only consider specialists—sometimes fresh perspectives help. But industry experience reduces onboarding time and risk.
Question to ask: "What challenges have you encountered working in our industry, and how did you solve them?"
3. Development Methodology
How a company works matters as much as what they build.
Most modern development teams use Agile methodologies, but implementations vary widely. Understand:
- Sprint length and cadence: How often will you see progress?
- How they handle changing requirements: Flexibility vs scope discipline
- Demo and feedback process: When and how you'll review work
- Definition of done: What "finished" means for each deliverable
Question to ask: "Walk me through what a typical sprint looks like, and how you'd handle a major scope change mid-project."
4. Communication & Transparency
Poor communication kills projects. During the sales process, pay attention to:
- Response times: If they're slow now, expect worse during delivery
- Clarity of explanations: Can they explain technical concepts clearly?
- Proactive updates: Do they anticipate your questions?
- Single point of contact: Will you have a dedicated project manager?
Ask about their communication tools and cadence. You should expect regular standups, sprint reviews, and clear escalation paths.
Red flag: Slow or unclear communication during the sales phase. It only gets worse after you've signed.
5. Security & Compliance
For UK businesses, data security isn't optional. Look for:
- ISO 27001 certification: The gold standard for information security management
- GDPR understanding: They should articulate how they handle personal data
- Secure development practices: Code review, security testing, vulnerability scanning
- Data handling policies: Where your data lives during development
Must-ask: "How do you ensure data security throughout the development lifecycle, and what certifications do you hold?"
6. Team Structure & Stability
You're not just hiring a company—you're working with specific people. Understand:
- Who will actually work on your project: Names and roles
- Team stability: Employee retention rates, how long team members have been there
- Backup plans: What happens if a key person leaves?
- Access to the team: Will you interact directly with developers?
Tip: Ask to meet the proposed team before signing. Their communication style and expertise matter as much as the company's reputation.
7. Scalability
Your needs may change. A good partner can adapt:
- Can they scale up quickly if your project grows?
- Do they have bench strength or are they at capacity?
- How do they handle urgent requests outside normal scope?
Question to ask: "If we needed to double the team size in three months, how would you accommodate that?"
8. Pricing Model & Transparency
Understand exactly what you're paying for:
- Fixed price: Best for well-defined projects with stable requirements
- Time & materials: Better for evolving projects, requires trust
- Retainer: Good for ongoing development relationships
Get clarity on:
- What's included vs what's extra
- How they handle scope changes
- Payment milestones and terms
- What happens if the project runs over
Red flag: Unwillingness to provide detailed estimates or explain pricing assumptions.
9. Post-Launch Support & Maintenance
Launch day isn't the finish line. Understand their approach to:
- Bug fixes: What's covered, what's chargeable, response times
- SLA terms: Guaranteed response and resolution times
- Ongoing development: How they handle enhancement requests
- Knowledge transfer: Documentation, training, handover process
Must-ask: "What does the first 90 days after launch look like, and what's included in your standard support?"
10. Cultural Fit & Working Style
Software development is collaborative. You'll be working closely with these people for months. Consider:
- Communication style: Direct or diplomatic? Formal or casual?
- Problem-solving approach: Do they challenge assumptions or just execute?
- Values alignment: Do they care about quality, or just delivery?
Trust your instincts after initial meetings. If something feels off, it probably is.
11. References & Reputation
Do your due diligence:
- Check Clutch and Google reviews: Look for patterns, not just ratings
- Ask for references: And actually call them
- Look for case studies: With specific, measurable outcomes
- Check their online presence: Blog posts, thought leadership, community involvement
Action: Call at least two references and ask about challenges, not just successes.
12. Location & Accessibility
Even with remote work, location matters:
- Can you visit their office if needed?
- Will they come to you for key meetings?
- Time zone overlap for real-time communication
- Response during UK business hours
For UK businesses, a UK-based or European partner typically offers the best balance of accessibility and collaboration.
Red Flags to Watch Out For
Some warning signs should end your evaluation immediately:
- No clear portfolio or case studies — what are they hiding?
- Reluctant to provide references — why can't you speak to clients?
- Unusually low prices — you get what you pay for
- Overpromising on timelines — experienced teams know to be realistic
- Poor communication during sales — it only gets worse
- No dedicated project manager — who's accountable?
- Unclear about the team — who's actually doing the work?
- No post-launch support — they're not thinking long-term
- Pushy sales tactics — desperation isn't a good sign
- Can't explain technical decisions simply — either they don't understand or don't respect your time
Checklist: 15 Questions to Ask Before Signing
Use this checklist when evaluating potential partners:
- Can you show me 3 similar projects you've delivered?
- Who will be my main point of contact throughout the project?
- What development methodology do you use, and why?
- How do you handle scope changes mid-project?
- What's your typical response time for queries?
- Are you ISO 27001 certified?
- How do you ensure GDPR compliance?
- Can I meet the developers who will work on my project?
- What happens if a key team member leaves?
- How do you structure pricing, and what's included?
- What's included in your post-launch support?
- Can you provide 2-3 client references I can call?
- What's your average employee retention rate?
- How do you handle bugs discovered after launch?
- What documentation and training will I receive?
Any reputable software development company will answer these questions openly. Hesitation or vague responses are warning signs.
UK-Specific Considerations
If you're a UK business, keep these factors in mind:
GDPR & Data Protection
Your development partner will likely handle personal data during the project. Ensure they:
- Understand GDPR requirements
- Have appropriate data processing agreements
- Know where data will be stored and processed
IR35 Considerations
If you're considering contractors or small consultancies, understand the IR35 implications. Working with an established company typically simplifies this.
Local Support
There's real value in UK-based support:
- Same timezone means faster responses
- No language barriers
- Easier escalation if problems arise
- Face-to-face meetings when needed
Funding & Grants
Various UK grants support digital transformation projects. A good development partner will help you navigate these—or at least not complicate your applications.
Why UK Businesses Choose Make IT Simple
At Make IT Simple, we've been helping UK businesses build custom software for over 20 years. Our approach is straightforward:
Transparent pricing: We explain our estimates in detail and stick to them. No surprise invoices.
Dedicated teams: You'll work with the same developers throughout your project. We don't shuffle people around.
UK-based support: Our team is based in Worcestershire, available during UK business hours.
Long-term thinking: We build software that's maintainable and scalable, not just functional on day one.
We're not the cheapest option, and we're not trying to be. We're focused on delivering quality outcomes for businesses that understand the value of getting software right.
Making Your Decision
Choosing a software development company is one of the most important decisions you'll make for your digital project. Take your time, do your due diligence, and trust your instincts.
Use the checklist above, speak to multiple providers, and don't be swayed by slick sales presentations. The best partnerships are built on honest communication and aligned expectations.
When you're ready to discuss your project, we'd be happy to have a conversation—no pressure, no hard sell. Just an honest assessment of whether we're the right fit.
About the Author
Andy Jones is the Owner and Founder of Make IT Simple, with over 20 years of experience in cloud software development. He's worked with large and medium-sized companies across multiple industries, helping them build custom software solutions that drive real business outcomes. Connect on LinkedIn
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