How to choose the right company for enterprise software development services?

Ever since the pandemic and the accelerated adoption of new emerging technology, the demand for custom software has skyrocketed. Today, customized software is no longer a choice but a necessity for nearly every business, from startups to large enterprises. In fact, the market size of global custom software development, valued at $24.46 billion in 2021, is projected to grow at a CAGR of 22.3% between 2022-2030. Owing to that, there is a growing demand for enterprise software development services. However, choosing the right company for your enterprise software development can be challenging. Therefore, this blog intends to discuss in detail the steps to follow when choosing the right company for enterprise software development.

Why is the urge for custom software development growing among enterprises? 

In the current business landscape, software applications have become an integral part of most business operations. Off-the-shelf software solutions suit small to mid-sized businesses, but enterprises need more customized software tailored to their specific needs. In fact, enterprise spending on software is expected to increase by 9.3% in just 2023. Moreover, below are the main reasons that justify the growing urge for custom software development among enterprises:

Adoption of emerging technologies:

New technologies are emerging at a rapid pace, such as AI, machine learning, IoT, etc. These technological advancements demand custom software development to leverage its full potential.

Real-time data analysis:

According to the IDG MarketPulse survey, the respondents confessed that data volumes are growing by 63% per month in their organizations. Therefore, enterprises need customized software that can process and analyze vast amounts of data in real-time to help them make informed business decisions.

Flexible workspace:

With the growing shift to flexible workspaces, enterprises need custom software solutions to support remote workers and set secure channels for streamlined business operations.

Productivity enhancement:

Enterprises are always looking to enhance the productivity and efficiency of their workforce. Customized software solutions help them automate, improve, and optimize the efficiency of existing processes and workflows, thereby enhancing productivity.

Competitive edge:

Every enterprise intends to be the first in the trends and provide the best user experience. Customized software solutions not just help to improve workflows but also help them differentiate themselves from other competitors.

All the above factors and many more are making enterprises look for more customized software solutions.

Enterprise software development services & their beneficial aspects

Enterprise software development services are those services that create customized software solutions and systems for large organizations to meet their specific needs. These service providers come up with a wide range of enterprise software solutions and services, such as customized application development, supply chain management, data warehousing, human resources, core IT modernization, customer relationship management, and similar others.

Enterprise software development services are run by experienced and skilled IT professionals with vast experience designing and deploying simple to complex software applications for enterprises. Some of the key beneficial aspects of using the enterprise software development service include:

1. It streamlines the process of creating specific software applications without much hassle.

2. It provides a cost-effective way of developing customized software applications.

3. It provides access to a large pool of highly-skilled software developers, thereby resulting in quality deliveries.

4. It provides faster time to market. 

5. It is flexible and adapts to changes quickly. 

In short, using an enterprise software development service helps enterprises fulfill their customized software needs without stressing much of their resources and workforce.

7 Steps to consider when choosing the right company for enterprise software development

Now that we have cleared our concepts around enterprise software development services and their beneficial aspects for an enterprise, let's shift our focus to how to choose the right service.

There are dozens of enterprise software development services available today, and everyone claims to offer the best services. However, you can pick the right service by evaluating them from different angles. Therefore, below are 7 steps that can help choose the right company for enterprise software development: 

1. Clarify project objectives and requirements 

The first step when choosing any third-party service for a project is to clarify and set clear project objectives and requirements. Since different services have expertise in different areas, you should not just blindly search "best enterprise software development services". 

You should finalize what are the requirements, end goals, and other aspects related to your projects. In fact, some enterprise software development companies offer dedicated IT consultancy teams to set clear project vision, better resource allocation, and improved risk assessment. 

2. Research & shortlist

 

Once the project objectives and requirements are finalized, the next step is to search for relevant companies. While searching, use specific keywords to find relevant services, such as "supply chain management software development", etc. By doing so, you will be able to get many best services in that niche.

Afterward, explore their websites, especially the "Services" section, and look for what relevant services they are offering. If a company holds expertise in its niche, the descriptions of its services will be detailed and reflect its stronghold. For example, if you explore a mobile app development service, you will get a clear overview of the service, including the case studies that reflect credibility. So, explore the services of your shortlisted companies and refine your list.

3. Check the portfolios

Once you trust that the shortlisted enterprise software development companies offer the required services, the next step is to check their portfolios. A portfolio gives an overview of the company's past projects, including details like project timeline, development approach, challenges, key project outcomes, etc. 

A company's portfolio also gives an idea of the types of solutions it has developed, from simple to complex ones. This way, you can deeply assess the company's experience and expertise in developing software solutions and refine the list to only those that seem to be the best enterprise software development services.

4. Look at the company structure and team dynamics

A great, powerful service description is not enough in today's tech landscape. The company's structure and team dynamics are also important indicators of the company's credibility. This will give you an idea of the company's functionalities, diversity, culture, expertise, communication and collaboration, etc. 

A company that emphasizes a healthy work environment usually manages to hire and retain top talent. In fact, 46% of job seekers consider company culture as a deciding factor when applying to a company. So, a company that has a well-structured hierarchy with top-notch work life should definitely have top talent. 

In addition, another important aspect to consider is whether the company is following the "agile methodology". Agile methodology is becoming a popular software development methodology that emphasizes iterative-based releases, like two-week or four-week cycles. This way, you can get some presentable progress of the project while the development team gets to hear your feedback early on in the development phase. This greatly improves the quality and also helps to address bottlenecks effectively. Therefore, closely evaluate the company culture and team dynamics of shortlisted services and refine your list further.

5. Check reviews

The last check before interacting with the services is looking at their reviews. Reviews are another effective way to evaluate the credibility of any service. There are plenty of online sites that let users write their reviews about companies, such as Clutch, Techreviewer, Trustpilot, etc. So, once you have shortlisted a few enterprise software development services, the next step you should do is check their user reviews. 

In addition, also look at if they have specific award-winning information on their websites. For example, being one of the most reviewed web developers in a particular location. Such information is a quick way to authenticate the credibility of the services.

6. Interact with the shortlisted companies

At this stage, you will likely have finalized a few best enterprise software development services that seem to offer your niche's best services. Now you should interact with them to present your requirements, clarify your doubts about their services, and discuss the development approach.

Below are the recommended steps to follow while interacting with the shortlisted enterprise software development companies:

1. Start the discussion by talking about your requirements. 

2. Ask them to provide their development approach, which will give you an idea of their methodology and technologies in use. 

3. Ask them about their expertise and experience developing similar software solutions.

4. Discuss the project timeline and pricing. 

5. Ask about the post-development maintenance and support.

Keep asking similar questions from all the shortlisted companies. You can even create a comparison table if you want, which will help later when picking one of them as the final choice.

7. Finalize your choice

The last step is to decide which service you want to trust for your project. Till now, you have undergone different checks, from reviewing their websites and team dynamics to its project-specific services. So, you should now have a couple of companies that seem best for your project. Now the important question is which one to trust for the project.

The best pick should be one that has completed a similar project in the past, as its past experience will be very handy for your project. However, this is not a hard and fast rule. Basically, you can pick any of the shortlisted services because each one of them has passed the above six stringent qualification rounds. Alternatively, you can make it a collaborative decision with other decision-makers. 

Enterprise software development services vs. in-house software development team

Before we conclude the discussion on how to choose the right company for enterprise software development, it is important to clarify one common doubt. Since the global developers' population is set to reach around 28.7 million by 2024, the question is, why opt for out-sourced software development services when enterprises can have an in-house, dedicated software development team? So, let's evaluate this point from the below angles:

Cost:

Enterprise software development service only requires the cost associated with developing the software solution. In contrast, in-house software development is more expensive, as it involves additional costs linked with the development team, such as monthly payments, training, benefits, salary increments, etc.

Quality:

Enterprise software development service provides access to highly-skilled and experienced developers that ensure quality and timely deliveries. On the other hand, in-house software development offers direct communication and can also lead to quality software solutions with a skilled development team.

Time:

Enterprise software development service offers faster time to market. In contrast, in-house software development can take more time, especially if the administration has to undergo recruitment to fulfill the skill gap.

Control:

Enterprise software development service provides less development process control. In contrast, in-house software development offers more control and continuous visibility of the progress.

Talent access:

Enterprise software development service provides access to a diverse and large talent pool to fulfill almost any complex software application. On the other hand, in-house software development teams are less diverse, with limited skill sets and industry backgrounds.

Security:

Enterprise software development service involves a level of security risk, especially if the enterprise is testing the service for the first time. Alternatively, in-house software development is more secure and trustworthy due to the in-house development team.

Short-term commitment:

Enterprise software development service comes with a short-term commitment. The service is no longer required as soon as the software is delivered. In contrast, in-house software development is linked with a long-term commitment because the workforce remains associated with the enterprise.

Wrapping up 

According to the latest forecast by Gartner, IT spending worldwide will reach $4.5 trillion in 2023, an increase of 2.4% from 2022. This reflects that technological advancements and changing customer demands urge enterprises and other small to mid-sized businesses to deploy as many software applications as possible. For large organizations or enterprises, opting for enterprise software development services is the best way to develop customized and quality software solutions in minimal time. Therefore, consider the above-mentioned steps and choose the right enterprise software development service that fits your specific needs.

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