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Khatia Tchitchinadze

Posted on 6th September 2024

Top 5 Mistakes Companies Make When Choosing a Software Agency 

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Choosing the right software agency is a big decision for any business, especially for a growing company like yours. The software agency you pick will play a major role in your success, so you need to get it right. Unfortunately, many companies make common mistakes when selecting a software partner. Let’s take a look at the top five mistakes to avoid and how you can make smarter choices.

1. Focusing Only on Cost

It’s tempting to choose the agency that offers the lowest price. But the cheapest option is rarely the best. While saving money is important, picking a low-cost agency can lead to poor-quality work, delays, and even higher costs in the long run when you need to fix problems or hire another agency to finish the job.

Example: Imagine you hire a cheap agency, but they lack experience in handling complex projects. Halfway through, the project stalls, deadlines are missed, and you have to hire another team to fix things. In the end, it costs double what you expected.

Solution: Focus on value over price. Look for an agency that provides a detailed plan, has proven experience, and can deliver quality work on time.

2. Not Checking the Agency’s Experience in Your Industry

Many companies make the mistake of choosing a software agency that doesn’t have experience in their industry. Each industry has its own  challenges and requirements, and an agency that has worked in your industry before will understand your needs better.

Example: A healthcare company hiring an agency with no HealthTech experience might face issues with compliance and data security. This can lead to significant delays and legal problems.

Solution: Make sure the agency has experience working with companies in your industry. Ask for examples of similar projects they’ve completed and check their knowledge of industry-specific regulations or standards.

3. Ignoring Data Security Concerns

Data security is one of the biggest concerns for any business, especially when dealing with an external partner. Many companies don’t ask enough questions about how their sensitive data will be protected during a project. This can lead to breaches, which can harm your reputation and cost a lot in damages.

Example: A fintech company might not ask about data encryption methods or security protocols when hiring a software agency. If the agency doesn’t have strong security measures in place, the company’s financial data could be compromised.

Solution: Always prioritize security. Ask the agency about their security policies, certifications, and how they handle sensitive data. Make sure they have a strong track record of data protection.

4. Not Asking for Clear Communication

Poor communication can cause delays, misunderstandings, and frustration. Many companies don’t ask how the agency plans to keep them updated or what tools they will use to manage the project. If you don’t have clear communication from the start, it can be hard to track progress or identify potential issues early.

Example: A CTO hires an agency to develop an app but doesn’t set up regular check-ins. Months later, they find out the project is far behind schedule because the agency didn’t communicate setbacks properly.

Solution: Set clear expectations for communication from the start. Ask how often the agency will update you, which project management tools they use (e.g., Jira, Gitrevio, Asana), and how you will track progress. 

5. Skipping the References Check

Many companies skip the step of checking an agency’s references, which is a mistake. Just because an agency has a good-looking website or portfolio doesn’t mean they are reliable. References from past clients give you a clear picture of the agency’s reliability, work quality, and ability to meet deadlines.

Example: A fast-growing tech company hires an agency based solely on their portfolio. However, they later find out the agency often misses deadlines and has poor customer service, leading to frustration and project delays.

Solution: Always ask for references and follow up with them. Talk to past clients about their experience with the agency, including how well the agency communicated, whether they met deadlines, and if they delivered high-quality work.

With so many agencies out there, choosing the right one can seem tough. But when you have the right information, it can be simple and sure! Avoiding the common mistakes we’ve discussed—like focusing only on cost, overlooking industry experience, neglecting security, skipping communication planning, and not checking references—will help you make a confident and informed decision.

If you want more guidance, visit https://pickagency.info/ Our guide covers all the essentials for choosing the best software partner, ensuring your company finds the right fit for long-term success.