How to Evaluate Software Development Companies Near You (Even When You’re Remote)

McKinsey & Co. reports that nearly 70% of top economic performers among all companies use proprietary software to differentiate themselves from their competitors. Custom software solutions offer numerous benefits, including improved scalability, enhanced integration with your existing systems, and features tailored to your specific needs. 

Many companies are understandably eager to tap into these benefits. However, not all software development companies near you may be the right fit for your business. In major metropolitan areas, local companies have high overhead that gets passed onto you, the client. Skilled software developers now live all over the world and the perfect engineer for your product might not be in your zipcode.

If you don’t know what to look for when choosing a software vendor, you could end up wasting time and money on a subpar solution.

Whether you’re hiring local or remote, knowing how to evaluate software developers can save time, money, and frustration.

Not sure which software development engagement models are best for your business? Read more about the pros and cons of nearshore development. 

Why Should You Evaluate Software Developers?

A survey conducted by the Boston Consulting Group (BCG) found that, according to nearly half of all respondents, more than 30% of their organization’s technology development projects were over budget and late. Additionally, as many as 60% to 80% of AI projects fail. With such a high risk for losses, companies can’t afford bad hires.

Working with a reliable software development company near you or abroad gives you better odds of mitigating these risks. Experienced software developers know when and where the development process can go wrong. They also communicate any issues as they arise, allowing you to work together as a team.

Steps of Choosing a Software Vendor

Whether you’re building something straightforward or exploring AI development and consulting services, choosing the right team can feel overwhelming. If you’re unsure how to evaluate software developers, breaking the process down into a few simple steps can make it much easier.

1. Determine Your Needs and Metrics: Before you jump to Googling, “software development companies near me,” you first need to decide the details of your project. What type of software solution are you looking for? What is your budget, and what is your preferred timeline? What are your KPIs?
   
   By having these details ready, you’ll have a better idea of what you’re looking for when choosing a software vendor.
   
   
2. Search for Expertise: When evaluating software companies, you need to assess whether they have the skills and expertise to build the solution you need. For example, if you’re interested in building a custom AI solution, the company should have case studies about successful AI projects you can compare to your own needs.
   
   You’ll also want to check whether the company has any experience in your vertical. Industry-specific partners are typically familiar with your market’s priorities, data, and challenges, making them better suited to meeting your unique demands.
   
   Working with software development companies near you, or with team members in your country, can aslo be useful. Companies with local leadership already understand your regional regulations and have a good handle on cultural expectations.

3. Check Reviews: Once you’ve determined that a company has the right skill set, your next step should be to review their testimonials. Even software development companies near you with years of experience can be hard to work with, and their reputation will reflect that.
   
   If you notice patterns across client reviews, such as missed deadlines, a lack of communication, and unclear estimates, take that as your sign to keep looking.
   
   
4. Schedule a Consultation: Once you’ve determined that the firm meets your standards, the next step is to get in touch. Some companies, like FullStack, offer free consultations you can use to ask questions, discuss your needs, and learn how they approach development. These consultations are also useful for comparing software development companies in your area before making a final decision.
   
   
5. Build a POC: A proof of concept (PoC) is an excellent way of validating both your project idea and the developer’s abilities. This small-scale project allows you to test core functionality, observe how their team operates, and assess the quality of their work firsthand.
   
   Not all software development companies near you will offer a PoC phase, but those that do are often more confident in their process and deliverables. A PoC also provides you with something tangible to present to internal stakeholders or investors, which can help secure buy-in and facilitate budget allocation.
   
   
6. Review Contracts and Pricing: After you’ve settled on a development company, your final step is to review the contract. Confirm the pricing model—whether it’s hourly, milestone-based, or a fixed fee—and make sure the scope of work is clearly defined.
   
   The agreement should also specify who owns the code and intellectual property, how change requests are handled, and what type of support is available after delivery. Before you sign, you should also compare how software development companies near you handle these contract details—some may offer more flexibility or transparency than others.

Software Development Company Red Flags

Even if a software vendor passes your initial screening process, red flags can still appear once you start working through the details. Spotting these before you commit can save you from costly delays and lackluster results. 

Whether you’re hiring from software development companies near you or working with a remote firm, keep an eye out for these red flags.

• Inconsistent Communication: If a firm struggles to answer basic questions clearly—or is slow to respond early on—it may be a sign of how they’ll communicate once the project begins. Strong communication from the beginning usually leads to a better working relationship.

• Overpromising: A good software developer will be confident but realistic. If they guarantee fast timelines, low costs, and perfect results with little discovery or planning, they may just be trying to tell you what you want to hear. 

• Asking Few Questions: Good vendors don’t just pitch solutions—they ask intelligent questions. If software development companies near you aren’t asking about your business goals, user needs, or tech stack, there’s a good chance they’re not thinking strategically about the build.

• Disorganization: Missed emails, messy proposals, or unclear timelines can point to deeper issues. If things feel scattered now, they’ll likely be worse once work begins.

If you notice any of these signs early on, it’s worth taking a closer look. While red flags don’t always mean a vendor is the wrong choice, they can create problems that could make the partnership more difficult. Addressing those concerns early gives you a better chance at a smoother, more productive working relationship.

Are Remote Development Companies a Practical Choice?  

While software development companies near you might feel more familiar, remote and nearshore development companies can also be a strong option. Many have well-established processes, experienced teams, and the necessary tools in place to deliver high-quality work, even when team members are not in the same office. Additionally, companies using a hybrid model, like FullStack, can provide the value of nearshore development while still keeping in close touch through US-based project leadership.

If your own team is remote, a remote vendor might be an even better fit than local software development companies. Remote software decvelopers are likely already operating in a similar manner to yours, utilizing tools such as Slack, Jira, GitHub, and Zoom to stay aligned and keep work moving forward. They’re also more likely to be comfortable with flexible schedules, async updates, and clear documentation, which can make the process smoother for everyone involved.

A remote software development company that’s organized, communicative, and proactive can be a smarter pick than a local firm that fails to meet your standards, no matter how close they are.

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Should You Consider Nearshore Development?

If you’re willing to branch out from software development companies near you, nearshore development is an excellent option. Nearshore software development offers access to skilled teams in nearby countries, often with similar time zones, cultural alignment, and overlapping work hours, similar to those of US-based firms.

Additionally, while nearshore development is more expensive than offshoring, it avoids many of the problems associated with offshore development, such as language barriers and delayed communication. Nearshore development remains more affordable than working with onshore developers, making it a great middle ground for companies seeking high-quality solutions on a budget. 

Interested in learning what nearshore outsourcing benefits could offer your team? FullStack works with talented developers across Latin America to help companies build great software. Whether you’re kicking off something new or just need extra hands on an existing project, we’re here to help.

Explore our custom software development services to see how we can support your next build.