Choosing a software development agency in 2024: 6 do's and don'ts

Innovative technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Cybersecurity continue redefining the selection of a software development agency, allowing us to conduct a more strategic and thorough analysis. Emerging technologies, the remote working model, environmental impact, and more, are just some of the factors that need to be considered when looking for a long-term technology partnership. Therefore, in the guide below we are going through the main do's and don'ts, ensuring you make an informed decision that aligns with your strategic goals.

Do's when choosing a software development agency

Leverage the power of AI

The power of AI and advanced analytics streamlines complexity and increases effectiveness when going through the process of vendor selection. By adopting ML models for forecasting, businesses can predict vendor performance and anticipate risks. Generative AI tools such as ChatGPT can significantly improve both the quality and quantity of the search results. They enable more comprehensive research of potential vendors, analyzing a broader range of data and parameters about chosen companies.

Additionally, well-known platforms like GoodFirms and Clutch can be easily combined with the analytical capabilities of ChatGPT allowing it to dig much deeper than the surface-level information and provide more comprehensive data. According to a survey by Gartner, 56% of the respondents say that they use generative AI tools like ChatGPT and beyond for analyzing data.

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Use the benefits of remote teams

Gone are the days when geographical proximity was a necessity for collaboration. In the era of remote and hybrid work, partnering with a company based in Eastern Europe, for example, can offer seamless integration, cost efficiency, and high productivity, even if your company is based in Texas. For instance, Accedia has experience working with clients from different European countries, the USA, Japan, South Africa, and many more.

Ever since the pandemic hybrid or remote work models have become the norm. 70% of the respondents in a Deloitte survey say that they are more or just as efficient when working from home. Additionally, respondents in a McKinsey study from 2023 all cited increased productivity as a top reason to choose remote work. To maintain high levels of team efficiency, collaboration tools are becoming more and more advanced. Slack AI for example can summarize long conversations or entire threads, or even find answers to questions using generative AI tools built into the platform. Microsoft’s Copilot in Teams introduces easier ways to access the assistant for meeting chats and summaries. Soon, Copilot will merge spoken transcripts with chat texts in one view, simplifying the process of catching up on missed meetings.

Prioritize environmental and social governance (ESG)

In the current environmental situation, there is more and more pressure on business owners and decision-makers to invest in sustainable practices and partnering with vendors who are environmentally cautious. KPMG says that 69% of CEOs have fully implemented ESG into their business as a means to value creation. Selecting a software development agency that prioritizes energy efficiency through sustainable technology practices will align with global trends and enhance the company's reputation. ESG-focused vendors also often adopt innovative practices that lead to more efficient and future-proof solutions. They may use green cloud computing technologies, optimize software for energy efficiency, or invest in renewable energy, which reduces environmental impact while lowering operating costs. Deloitte shares that in a Deutsche Bank survey, nearly 80% of respondents say they want their investments to be associated with companies that have ESG as a core value.

Read more about Accedia’s green practices

Don'ts when choosing a software development agency

Don't overlook the importance of company culture

According to Gallup employees who connect to their organization’s culture are 68% less likely to feel burned out. This is directly linked to their productivity, creativity, and consistently performing well.

Thus, while evaluating a vendor’s technical skills, hourly rates, and other hard factors is important, the culture and values of a company can be an indicator of its work environment and approach to problem-solving and innovation. A software development agency with the right values and professionalism ensures smooth communication and collaboration, which in the long run reduces misunderstanding and builds a stronger relationship.

Read more: Accedia’s company values

Don't forget to assess their cybersecurity expertise

Organizations must embrace proactive strategies to protect against increasingly complex cyber threats. They should employ methods like AI for enhanced threat detection, regular cybersecurity assessments, penetration testing, and partnering with cybersecurity experts to safeguard their reputation and software solutions. Evaluating the skills and expertise of a vendor in terms of cybersecurity is crucial to protect against data breaches and ensure compliance with data protection laws, which can save an organization from significant financial losses and damage to its reputation. In IBM’s Cost of a Data Breach Report 2023, is said that 95% of surveyed organizations have experienced more than one data breach with a global average cost of each breach being USD 4.45 million (a 15% increase in the prior 3 years).

Recognizing these challenges, Accedia has implemented a comprehensive set of cybersecurity practices to enhance client security. By adhering to the ISO/IEC 27001:2013 standard and achieving TISAX certification, Accedia ensures compliance with rigorous industry regulations. Additionally, we actively engage in initiatives such as a Cyber Security Hackathon and provide Security Vulnerability Assessments, focusing on staying ahead of emerging threats and delivering robust cybersecurity solutions to clients.

2024 cybersecurity threats: 5 strategies to mitigate risk

Don't overlook the power of data management

According to G2, 80% of businesses estimate that between 50% and 90% of their data is unstructured. As a result, businesses lose out on valuable data that can otherwise guide strategic business decisions. Thus, finding a software development vendor, who knows how to utilize emerging technologies such as AI and Machine Learning for their processing capabilities is essential. They can automatically categorize, organize, and manage large volumes of data, and identify patterns and anomalies in the data that humans might miss, making the data more accessible and useful for decision-making. AI can also uncover trends, predict outcomes, and provide recommendations by learning from the data.

Conclusion 

Selecting the right software development agency in today’s technology-driven market requires a comprehensive, forward-thinking approach that goes beyond conventional selection criteria. By embracing AI, ML, and cybersecurity, and considering the broader implications of remote work, company culture, and ESG principles, businesses can find partnerships that are strategic, sustainable, and adaptable to the dynamic technological market.

This article was originally published by Dimitar Dimitrov, Managing Partner at Accedia, as a contribution to the Forbes Technology Council.