5 Aspects for Making Smart Software Agency Partnership Decisions
Over the years I had the chance to look into plenty of successful and failed software development projects with vendors, which led me to building a private pool of the best boutique software development agencies. During our work at Agency Partners, we’ve already profiled around 5.000 European agencies, here I try to give you a quick and dirty guide of how to vet a new development partner to minimise your risks.
Summary
Intro
Choosing your software development agency partnership can either make or break your development project. Screening software development agencies before committing to a partnership can be challenging and time-consuming.
To help you navigate this critical process, we've gathered a list of early red flags to watch out for and key decision points to consider. By being mindful of these aspects, you should avoid costly mistakes and ensure a positive outcome for your project.
Use our toolkit for a complex, long-term project scope.
At times, you just need help adjusting the font size in a text box. Let’s rule out these minor projects and focus on long-term and more complex partnerships involving 3+ Engineers for 6+ months.
Our toolkit is designed for decision-makers with a well-defined innovation project and a clear vision for the outcome. Before engaging with a development partner, it is super important that you have a good understanding of your requirements, timelines, and budget. The vetting process we share will give you the confidence you need in your selection.
In an ideal setup, your team has the technical expertise internally - a CTO character or an ally who can act as a tech decision-maker. If that's not the case, additional factors might be considered during the screening process.
Our article is for you if you are searching for a development partner and want to make a smart decision before you commit to the long haul.
Consider our 5 fundamental aspects and find Partnership options that match your needs.
Team Fit
Look for a group of people you and your team are excited to work with. Prioritise value fit, excellent communication, and team synergy.
When looking for an agency to work with, it is important to find a team that resonates with yours. They should be motivated by your mutual success and take the time to understand your business goals and needs.
Compatible Work Style: If your team works in one structure, matching it on the agency side is also beneficial. Agile methodologies like Scrum are standard practice for software development projects, but your team might have other methodologies and custom habits.
Timezone Preferences: When working with an agency, timezone can be an important decision factor. Both async and real-time collaborations can have highlights and challenges. Asynchronous communication might help speed up the development process. However, there’s likely to be less miscommunication when working together in real-time.
Culture Fit: Essentially, you want to work with an agency that shares your values and has a company culture that aligns with yours. Usually, you can listen to your gut through your first interactions and ask yourself if you want to spend time with them daily.
Communication Skills: Communication is key to any successful partnership. It's important to find an agency with a common language, mainly English, communication skills, and a style that fits your team well. You want to make sure that the agency is easy to communicate with and that your team members can easily reach out to each other.
Our Team Fit Checklist:
Professional Mindset
Look for a Thought Partner with a strong product mindset: you need to find technical expertise and people who dare to say no to you and bring new ideas to the table.
Choose a vendor who can become your thought partner. Look for someone who asks insightful questions, understands your unique needs, and offers solutions aligning with your vision. They must also have the courage to challenge your ideas for better outcomes.
As a good indicator, we suggest you always check if your future partner is active in their professional community. Do they have access to the best talent? Do they contribute to professional publications in their field? Are they part of the discussion at conferences or online threads?
Industry Background
Find Agencies with relevant case studies and industry knowledge: Domain-specific experience can be a massive advantage as onboarding an agency to a new domain can take up to 6 months.
Partnering with a software agency experienced with similar clients can significantly reduce your onboarding and development costs. They likely have established procedures ready to adapt to your project, saving you time and money. Their previous work makes them more likely to understand market dynamics and insider slang, and they might even have previous user interactions under their belt.
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On the other hand, you should also be aware of potential NDA and non-compete disclaimers, especially in highly confidential industries like finance and pharma.
Take advantage of doing a background check on your potential development partner. It’s okay to ask for the contact information of their previous clients and give them a call. Public reviews can be biased, but firsthand experience gives you a clearer picture of what to expect.
As the contracting party, you should always ask for
Stable operations
Seek stable Boutique Agencies (15 - 70 headcount) with 3+ years of experience and stable operations.
Age of the Company: As a rule of thumb, it is best to avoid companies with less than three years of experience. These companies are often too eager to secure your business and may over-promise or compromise to complete your project quickly.
Agencies that surpassed the five-year mark have successfully navigated initial challenges, making them more likely to meet your requirements without cutting corners. Check the founding year on LinkedIn or in the Company Registry.
Team size: Another critical factor is the vendor’s current headcount. In my experience, the ideal team size is between 15 and 75 employees. Companies within this range can offer the perfect balance of stability, capacity, and flexibility - they have involved management in place, proven processes, and strong references.
Smaller agencies with fewer than 15 employees may still need stable operations. They tend to have higher fluctuations, which can risk the project's outcome.
Agencies with more than 75 employees might be a good choice for long-term, high-compliance, regulated projects, but they may not be the best fit in terms of culture and flexibility. Check the company’s headcount in a Company Registry document or by visiting their website.
Growth stage: A healthy growth (5-15% YoY - Year over Year) is always a good sign when evaluating software development agencies. It indicates a strong client pipeline, which might indicate others are willing to pay for the vendor’s services. A steady team size or some decrease around 2022-2023 might be acceptable in the current economic environment.
The potential partner’s financial report will give you a good overview of their track record.
As the contracting party, you should always double-check the partner’s
Feasibility
Get 3+ offers from potential Partners that fit your budget and timeline for grounded decision-making.
Always get at least three quotes. Don't settle for one option, even if you have a potential winner in mind already. What if they can't take on your project at the end? What if another agency raises a point you had yet to think of? What if your preferred quote is too expensive compared to others? You need more options for your safety and well-considered decisions.
Timeframe and availability are also important factors. The Agency should have a clear project plan and timeline that will help you track progress and increase your chances of completing your project on time - they also need to be available when you are ready to kick off.
Seek vendors who provide competitive pricing and complete transparency about their cost structure, including additional charges. This clarity will help prevent unexpected fees and challenging discussions, keeping your project on budget.
Feasibility checklist:
A realistic timeline for choosing an ideal development partner takes about a month and requires notable efforts
What would a realistic timeline look like when screening Software Development Partners? Based on our experience, a minimum one-month-long turnaround is a standard process for a well-reasoned choice.
Of course, we’ve also seen project launches in a week, but internal discussions, back and forths, and clarification workshops tend to make the process longer. You can reduce this time by creating clear technical specifications, defining clear partner selection criteria, and potentially outsourcing the agency list building and shortlisting.
Agency Partners can help you choose a custom fit from a pre-screened pool.
While 95% of agencies focus primarily on “being cheaper” in their communication, we should always seek the ones that offer both affordability and niche experience with solid references.?
Agency Partners can match you up with your dream vendor through our carefully vetted network of top-notch software development agencies - prepare to be impressed! We provide a shortlist of 3 agencies with personal recommendations for each.
Connect with Agency Partners, submit your project details, and get recommendations for 3 top-tier agencies tailored to your needs.
Finance ?? | Venture Capital ?? | Startups ??& Journalism ??
5 个月Great job overall around identifying the key aspects of a successful agency partnership!
HR Executive & BDE(Client Manager) | Driving Talent Acquisition & Strategic Partnerships in Staffing HR/BDA |MBA HR | B.com| HR Operations & Recruitment | Client handling | Employee engagement | Motivational Speaker
5 个月That's impressive! It's crucial to find the right partner for success.