How Do You Choose a Software Development Company? Questions to Ask and Red Flags

Choose a software development company by checking three things: that it has built something close to what you need and you can try that work yourself, that you know which people will actually do your work, and that the contract gives you ownership of the code and control of the accounts. Then test the relationship with a small paid piece of work before committing to the whole project. Price only means something once those points are settled.

Entrant Technologies builds websites, web applications, mobile apps and custom software, so we are one of the companies this guide describes. Every question and red flag below applies equally to us, and you should put them to us exactly as you would to anyone else.

What should you look at before the first call?

Look at two things: past work that resembles your project, and who would do yours. Screenshots prove little. Ask for links to products you can open and use: a website you can load on your phone, an app you can install from the App Store or Google Play, a demo login for a business system. Resemblance to your project matters more than polish.

Then find out who is behind the work. Is the team employed by the company or subcontracted? Will the people on the sales call still be involved afterwards? Ask to meet the project lead or senior developer before you sign anything.

What questions should you ask a software development company?

Ask about ownership, estimates, changes, quality, life after launch and communication, and expect a specific answer to each.

Who owns the code and the accounts?

You should own both, and it should say so in writing. Paying for software does not automatically make it yours. In the UK, for example, government guidance on ownership of copyright works says that when you commission a work, the first owner of the copyright is whoever created it, not you, unless you agree otherwise in writing. Rules differ between countries, so have the contract state that the code transfers to you on payment. This is not legal advice.

Accounts matter as much as code. The repository, hosting, domain and app store accounts should be registered to your company, with the developer added as a member. GitHub's documentation on organization roles gives owners complete administrative access and recommends that at least two people hold that role. Apple's developer account roles page says whoever enrolls in the Apple Developer Program becomes the Account Holder, the person who renews the membership and accepts legal agreements. Both were checked on October 6, 2026. The practical point: enroll and create these accounts yourself.

How is the estimate built, and how are changes handled?

A credible estimate is broken down by feature or phase, lists its assumptions and says what is excluded. Ask what happens when you change your mind mid-project, because you will. There should be a written change process that tells you the effect on cost and date before the extra work starts.

How do you test and secure the software?

Ask who tests, whether a second developer reviews each change, whether tests run automatically, and how passwords and access keys are stored. A useful reference point is the NIST Secure Software Development Framework (SP 800-218, version 1.1, published February 2022 and still the current final version as of October 6, 2026). Ask which of its practices the company follows. You are listening for whether a routine exists, not judging the detail.

What happens after launch?

Ask how long defects are fixed without charge, who applies security updates, what ongoing support costs and how handover works if you leave. Our guide to software maintenance and support covers what that work involves.

How will we communicate?

Ask for a named contact, a regular demonstration of working software, and the exact hours in your own time zone when the team is reachable. Ask whether that overlap is a commitment in the contract or just a habit.

How do you check a software company's references?

Speak to two or three past clients directly, by phone or video, and include one whose project finished more than a year ago. Ask questions the company cannot script. What went wrong, and how was it handled? Did the final cost match the estimate, and if not, why? Do you hold the code and the accounts today? Would you hire them again? If a company cannot offer a single reference for comparable work, treat that as an answer in itself.

What should a sensible software development proposal contain?

A sensible proposal shows that the company understood your project and tells you exactly what you are buying. Look for:

• Your goals restated in plain language, including what is out of scope.
• Features or phases with an estimate for each, and the assumptions behind them.
• The names and roles of the people who will do the work.
• A timeline with milestones at which you see working software.
• Payment terms tied to those milestones.
• Terms for ownership, testing, the defect-fixing period and support after launch.

A document that is mostly company history followed by one total figure is a brochure, not a proposal.

What are the red flags when hiring a software development company?

The clearest red flags are certainty without curiosity and reluctance to give you control. Watch for these:

• A price with no questions asked. Nobody can price software they do not understand. The figure is either padded or will be recovered later through change requests.
• No access to the repository. If you cannot see the code while it is being written, you cannot verify progress or leave with your work.
• Vague answers on ownership. "We will sort that out at the end" is not an answer, and neither are accounts held in the developer's name.
• Pressure to sign. Expiring discounts and urgency serve the seller's timetable, not your project.

Should you start with a small paid project first?

Yes, wherever the project allows it. A discovery phase, a clickable prototype or one self-contained feature shows you how the team communicates, estimates and delivers while your risk is still small. Pay for it rather than asking for free trial work, which tends to get the least attention a company can spare. Agree at the start that you own the output whether or not you continue.

What mistakes do buyers commonly make?

The most common mistake is comparing prices for projects that are not the same. Without a written description of what you need, each company prices a different scope and the cheapest quote is simply the smallest one. Other frequent mistakes: letting the developer register the domain and hosting because it is quicker, skipping references because the sales call went well, and budgeting for the build but not for maintenance afterwards.

What should you do next?

Write a one or two page description of the project: who will use it, what they need to do, which systems it must connect to, your deadline and your budget range. Send the same document to three or four companies and ask each the questions above. Compare the answers side by side, shortlist two, check their references and start the one you prefer on a small paid piece of work.

Quick answers

How do I choose a software development company?

Pick a company that has built something similar that you can try yourself, tells you who will do the work, gives you written ownership of the code and accounts, and explains how its estimate was built. Confirm the choice with references and a small paid first project.

Who owns the code when I hire a software development company?

It depends on the contract and the country, so do not assume it is you. Have the contract state that the code transfers to you on payment, and keep the repository, hosting, domain and app store accounts registered to your own company.

What is the biggest red flag when hiring a software development company?

A firm price offered without questions about your project. A company that has not asked how your business works cannot know what it is pricing, so the figure is unreliable.

Should I choose the cheapest software development quote?

Only if the quotes cover the same scope, which they rarely do. Check what each one includes and excludes, especially testing, support after launch and the handling of changes, before comparing totals.

Conclusion

A good software development company makes itself easy to check. It shows you work you can use, names the people involved, puts ownership in writing, explains its numbers and is comfortable starting small. A company that resists any of those is telling you how the project will go.

If you would like to put these questions to us, contact Entrant Technologies with a short description of your project and we will take a look.