How Do I Find the Right Agile Software Development Company for My Project?

Price is often the crucial point when it comes to selecting an agile software development partner. Different offers can be easily compared and thus you can make what seems to be a safe choice. At least at first glance. 

But if you do not take the provider’s ability into account or underestimate it, the initial savings can quickly be reversed. For example, the provider may not meet the project’s requirements, and the project team may suffer. If you scrape expenses at the wrong end, the additional cost and time will be significantly higher than the savings at the beginning. 

We will show you which quality criteria are important for an agile approach and how you can select the right agile software development vendor for your agile project with the help of a structured process.

Criteria for selection of an agile software development company 

It is crucial to deal with the topic of quality criteria before starting the selection process. Only this way, you will know what to look for during the selection interviews. In our opinion, you should definitely consider the following criteria:

  • Experience in Agility: The more experience an agile software development company has with agile methods, the better. Agile project development can only be successful if an “Agile Culture” is lived.
  • Well-established Team: An established team is preferable over a newly assembled one. Because well-established teams can often be much more productive than a new team. For longer projects, you should also take turnover in the team into account. We are familiar with this issue, especially in offshore teams, where individual developers can be replaced at any time.
  • Direct Communication: This factor is particularly important for agile projects. It must be ensured that your experts can work with the provider’s experts directly –  ideally in the same scrum team. From our own experience, problems often arise when there are too many handovers between individual team members. Decisions have to be made quickly, without long decision-making processes. 
  • Experience in the Domain: The experience in the domain also plays an important role, especially at the team members’ level. International references are often mentioned, but the corresponding team does not have this experience. 
  • Culture Fit: It is important to understand the mindset and development processes of the provider. You should check in advance to what extent this fits with your own company culture and enables a close cooperation.
  • Degree of Dependency:  It makes sense to consider how to keep the extent of dependence on your provider low in further course of the project.One possibility is to rely on open standards. It makes it easier to change the supplier at a later point or to train its own developers. 
  • System Architecture: The architecture of a new solution must fit into the existing system landscape. A completely new system with new technologies increases complexity and makes maintenance more difficult later on if the skills available are not sufficient within the organization. This also increases the dependency on the agile software vendor.
  • Maintenance: Once the software has been developed, the maintenance phase begins. It is well known that it takes much longer than the development phase. Therefore, you should review the agile software suppliers strategies for this phase and test how quickly they react to unforeseen errors such as production incidents.

In addition to the quality criteria, as a customer, you should know your most important NFRs (Non-functional Requirements), such as security, scalability, testability. This is the only way you can examine the selection process and whether providers can fulfill these and communicate them directly. Otherwise, the system may implement security requirements at significantly higher costs or, in the worst case, not at all. It is well known that NFRs influence the system architecture more than functional requirements. In the worst case, a product may not be able to implement these NFRs at all.

Find the right agile software development company with this 4 step process

These preliminary considerations provide the basis for a structured process that allows you to select providers based on the most important criteria in four steps. 

1. Make a preliminary selection

When you start a tender for an agile project, you will receive a number of offers. The first step is to preselect the offers. 

The purchasing department usually takes over the pre-selection. Bidders are chosen based on the price and the qualification criteria described above. 

 2. Conduct intensive discussions

After the pre-selection has been implemented, intensive discussions between your and the provider’s experts take place. These discussions occur to validate the first impression. 

Also, requirements as NFRs can be addressed at this stage to give the provider a detailed idea of what is expected from him during project implementation.

 3. Conduct the prototype phase

The prototype phase is crucial, but it is often not done. Especially if you have not worked with the provider yet, you should not skip this phase under any circumstances. 

Ideally, the prototype phase should be done with several selected providers. The goal of this phase is to assess the collaboration based on the executable software. This will give you a better understanding of whether cooperation with the software development company works and whether all quality criteria can be met. 

Important: During the prototype phase, you should make sure that it is executed with the final team. The employees who will later be responsible for the product development should already work on the prototype in the final constellation during this phase.

4. Start product development

The software created during the prototype stage and the feedback from the experts regarding the cooperation with the provider serves as the basis for decisions that will further cut back the selection making. At the end of this phase, you should select a company with whom you will carry out product development.

However, before entering the development phase, contract negotiations must be conducted. With agile projects, you should be aware of several pitfalls when drafting the contract. We have summarized essential tips for you to create a solid contractual basis for your agile projects.

Price is not the decisive criterion

Price is usually not the best selection criterion, even if it seems so at first glance. It is important to be aware of the most important quality criteria in advance and validate them in a structured process for potential providers.

The following list of questions will help you to assess the quality of the provider:

  • How much experience with agile methods does the company have?
  • Is it guaranteed that I get a well-established experienced team? Do I have a direct influence on the people who work in my team?
  • Is a direct communication of customer’s and provider’s team members ensured?
  • Does the provider and, especially, the team implementing my project, have experience in my domain?
  • For longer running initiatives: How high is the fluctuation of people in the team?
  • Do you know your non-functional requirements?
  • How directly can you communicate with the implementation team?
  • Is the implementation team perhaps a part of your own team?
  • How good is the agile provider in the maintenance phase?

Do you have further questions about the selection of agile providers?

Or do you want to develop an environment in your company that enables working with agile methods?

Please contact me via eMail or on LinkedIn with your questions.