Shortlist three firms, then check: a relevant portfolio with a live reference, a written process, a named team, code and IP ownership in your name, a fixed communication rhythm, transparent pricing, maintenance terms and independent reviews. Ask for a paid discovery or small pilot before committing. Avoid vendors who promise everything, refuse references or will not put scope in writing.
Picking a software partner is mostly a risk decision. The code is hard to judge from the outside, so you judge the things you can see: evidence, process, paperwork and behaviour. We are a software agency in Colombo, so we are on the other side of this table, and we wrote this the way we would want a buyer to approach us.
What should you look for in a software development company?
Use these 12 checks as a filter. A firm does not need a perfect score, but gaps should be explained, not dodged.
- Relevant portfolio. Projects similar to yours in type and complexity, not just attractive screenshots.
- A live reference. A past client you can speak to, or at least a live product you can use.
- Written process. How they scope, design, build, test and release, described in a document and not only on a call.
- Named team. You know who the project manager, lead developer and designer will be.
- Code and IP ownership in your name. Stated in the proposal and the contract.
- Communication rhythm. For example a weekly demo, a shared task board and a named contact.
- Transparent pricing. A breakdown by phase or feature, with assumptions listed.
- Testing and quality practice. What is tested, by whom, and before which releases.
- Maintenance and support terms. What happens after launch, for how long and at what cost.
- Independent reviews. On platforms such as Clutch, GoodFirms or DesignRush, with real names and project details.
- Honest scope pushback. A good firm tells you what to cut or delay. A firm that agrees to everything is not listening.
- Fit for your size. You want to matter to them. A tiny project at a huge firm can get junior attention; a huge project at a tiny firm can overrun their capacity.
How do you judge a portfolio and references?
A portfolio shows that a firm can produce something. It does not show that it can produce something for you. Look deeper:
- Open the live product. Click around, test on a phone, check how fast it loads.
- Ask what the firm actually did. Design only? Development only? Everything?
- Ask about the problems. Every real project hit trouble. A firm that cannot describe one may not have been close to the work.
- Speak to a reference. Ask the client three things: was it on time, how did the firm handle changes, and would they hire again?
- Check the age of the work. Projects from the last two years show current skills.
For our own work, you will find a list of projects on our portfolio page. We have delivered 70+ projects for 60+ clients, and references are available on request.
What questions should you ask on the first call?
Ten questions that surface most problems quickly:
- Who will work on my project, and what is their experience?
- Can I see two projects similar to mine, and speak to one client?
- How do you handle scope changes after work starts?
- What do I own at the end, and when does ownership transfer?
- Which accounts (code repository, hosting, domain) will be in my name?
- How often will I see working software, and in what form?
- How do you test before release, and who signs off?
- What happens if a key person leaves mid-project?
- What is not included in this price?
- What does support look like after launch, and what does it cost?
A good firm answers in plain language and in writing. Vague answers to questions 4, 5 and 9 are the most common warning sign.
How do you compare quotes fairly?
Most quote disagreements are scope disagreements. Three firms asked to "build an app for my business" will price three different apps. Fix that first:
- Give every firm the same written brief. Our software project scoping guide includes a template.
- Ask for a line-by-line breakdown. Design, build, testing, project management, deployment.
- List the assumptions. Number of screens, integrations, user roles, devices.
- Compare what is excluded. Hosting, content, third-party licences, revisions, support.
- Compare the contract type. A fixed price and a time-and-materials estimate are different animals; see fixed price vs time and materials.
Use a scorecard to avoid choosing on gut feeling. Score each firm from 1 to 5 and weight what matters most to you:
| Criterion | Weight (example) | Firm A | Firm B | Firm C | |---|---|---|---|---| | Relevant portfolio and reference | 20% | | | | | Team seniority and named people | 15% | | | | | Process and communication | 15% | | | | | Price transparency and total cost | 15% | | | | | IP, contract and ownership terms | 15% | | | | | Testing and support | 10% | | | | | Reviews and reputation | 10% | | | |
The cheapest quote is rarely the winner on this table, and the most expensive one often is not either.
What contract terms matter?
Ask your lawyer to review the final document. As a buyer, make sure the contract covers at least these points (general information, not legal advice):
- IP ownership. Who owns the code, designs and data, and when it transfers.
- Confidentiality. An NDA signed before you share sensitive detail. See our guide to NDAs, IP and data protection.
- Acceptance criteria. How "done" is defined and tested for each milestone.
- Change process. How changes are requested, priced and approved.
- Payment schedule. Tied to milestones, not just calendar dates.
- Support period. Warranty for bugs after launch, and the terms for ongoing support.
- Termination. How either side can exit and what you receive if they do.
What are the red flags?
- They quote without asking questions.
- A price that is far below every other quote, with no explanation.
- They refuse to provide references or a live example.
- They will not put the scope in writing, or the written scope is a single paragraph.
- Everything is "possible" and nothing is a trade-off.
- Key staff are hidden behind a sales contact.
- Code, hosting or domains would sit in their account, not yours.
- They push for full payment up front.
- No mention of testing, documentation or handover.
- Reviews that all look alike, were posted in a short window, or do not name the project.
One red flag is a reason to ask more. Three is a reason to walk away.
How do you check an agency in Sri Lanka specifically?
The same checks apply, plus some local ones:
- Directory reviews. Look up the firm on Clutch, GoodFirms and DesignRush and read the project details behind the stars.
- Industry membership. Check whether the firm is listed on SLASSCOM, the national IT-BPM industry body. It is not a quality guarantee, but it shows the firm is part of the wider industry.
- Company registration. Ask for the registered company name and number so you can contract with a legal entity, not a trading name.
- References. Ask for clients in your country or region, if any, and for local ones as well.
- Time zone fit. Sri Lanka is UTC+5:30 all year with no daylight saving. Check the working-hours overlap with your location before you sign.
- Rates in context. Directory medians, for instance GoodFirms's $25 an hour for verified Sri Lankan software firms, are a starting benchmark only. The spread between firms is wide.
For the wider picture on working with a Sri Lankan team, read how to outsource software development to Sri Lanka. If you are comparing a single developer with a firm, see freelancer vs agency.
Want to test us with this list? Send your ten questions on WhatsApp and we will answer in writing.
Should you start with a pilot?
Yes, in most cases. A pilot is a small, paid, well-defined piece of work: a discovery phase, a prototype or one feature. It costs a fraction of the full project and shows you how the firm communicates, how it handles feedback and how good the work is. It also gives the firm a realistic look at you as a client.
Good pilot candidates are a clickable prototype, a technical proof of concept, or a single module of the product. Set a short timeline, agree the deliverable and decide in advance what "good enough to continue" means. If you are looking for a website or web app from a design perspective, our guide to the best web design agency in Colombo covers that variant, and our PageSpeed write-up shows what we mean by measurable quality.
FAQ
How do I vet an offshore software company?
Check reviews on independent directories, speak to at least one past client, confirm the legal entity and ask who will work on your project. Run a small paid pilot before the main build, and make sure code, hosting and domains are in your name. Our Sri Lanka outsourcing guide adds region-specific checks.
What should a software development proposal include?
A proposal should state the scope and what is excluded, deliverables, timeline, team, pricing with a breakdown, the contract type, acceptance criteria, change process, IP ownership, support terms and assumptions. If any of these is missing, ask for it before you compare prices.
How many agencies should I get quotes from?
Three is a sound number. Fewer limits your comparison, and more than five costs you time without much extra insight. Give all of them the same written brief so the quotes are comparable.
Is the cheapest quote a red flag?
Not always, but it needs explaining. Check whether it covers the same scope, testing, project management and support as the others. A price far below the rest often means a narrower scope, junior staff or costs that will appear later as change requests.
Should I visit the team in person?
It helps, especially for large projects, but it is not essential. For most small and mid-size projects, video calls, a live product walkthrough, references and a pilot give you enough evidence. If you are investing heavily, a visit or an extended video session with the whole team is reasonable.
Talk to us
Test us against this checklist. Send your ten questions to IT Starter on WhatsApp and we will reply in writing, with references on request. You can also read about our software development services and web design and development work.
Chat with us on WhatsApp or reach out through our contact page.