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What is a software agency: pros, cons, examples

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software development

A software development company is an agency that specializes in developing, designing, testing, implementing, and maintaining software products, web and mobile applications, digital solutions, infrastructures, and other software components to achieve clients’ business goals.

Software development helps automate many workflows and expands business boundaries, resulting in the customer receiving a tool that is fully suited to the goals of the business, solves problems, simplifies management, improves customer experience, and takes the company to a fundamentally new level. The development process covers all stages from the initial idea and the software concept to the launch of the final product and further maintenance.

Hiring a software development agency is beneficial for your project in many ways, including the following reasons:

  • access to global expertise and attracting the world’s best talent;
  • reduced costs and achieving a cost-effective solution thanks to the right resources and necessary experience;
  • the ability to expand the software as your project develops and your goals transform;
  • saving time and keeping the internal team focused on critical business tasks;
  • flexibility in terms of scope and implementation of both small projects for start-ups and large ones for huge enterprises;
  • guarantee of the highest quality with testing throughout implementation and maintenance upon product launch.

However, the most crucial thing to experience all the benefits of working with a software agency is to find the suitable contractor that matches your vision and your goals. Keep reading to find out what types of software agencies there are, learn how to choose the best collaboration model, and most importantly, find examples of top software development companies for your next project.

Software Agencies Examples 

Today, a huge number of companies around the globe provide software development services, and the possibility of remote collaboration and hiring specialists from anywhere in the world makes choosing a truly difficult challenge. Based on Clutch reviews and such parameters as the cost of services, tech stack, team experience, successfully implemented projects, and other criteria, we have selected 3 examples of companies, which we definitely recommend working with.

Brights

One of the top and most reliable technical partners in Eastern Europe is Brights software agency is — the agency is located in Poland (Warsaw) and Ukraine (Kyiv) and has more than 100 talented specialists. This outsourcing company was founded in 2011 and with over 12 years of experience has successfully implemented over 400 projects for clients from all over the world and has an average rating of 5.0 according to Clutch.

Brights is a full-service company that provides a full range of services for the design, development, testing, implementation, and support of digital products for short-term and long-term projects across all industries and markets.

Netguru

Netguru is an advanced Polish software development and IT consulting firm that has been on the market since 2008. Today, the agency has a team of over 600 highly-qualified professionals and an average review rating of 4.8 according to Clutch.

With more than 15 years of experience, the software company has implemented many projects for both early-stage startups and global corporations, introducing digital products that let people do things differently. Netguru puts quality above all else and specializes in the development of front-end and back-end web products, building mobile apps, design, and consulting.

Cleveroad

Cleveroad is one of the leading Ukrainian software development companies with offices in Ukraine, the USA, Norway, and Estonia. The agency has been providing full-cycle services for the development of web products and mobile applications since 2011 and, as of 2024, has an average review rating of 4.9 according to Clutch.

Cleveroad has strong expertise across different industries, uses a progressive tech stack, and puts innovation and transparency above all else. The custom application development company has a large number of notable awards and an excellent reputation among clients, partners, and colleagues.

Types of Software Agencies

There are a large number of different rankings of software development companies but we will look at the most generally accepted one. So, let’s explore the three common types of software agencies so that you can decide which one is your safe bet.

  1. Scalable, fully managed services. In fact, this is what we know as end-to-end, full-service development at scale. These software companies are the largest, most flexible, and most scalable — their range of services covers everything required to implement and maintain advanced and powerful digital projects of any size. With this type of software partner, you don’t need to be completely immersed in management issues and control.
  2. Limited-capacity boutique development agency. This type of software company is also completely manageable, and the main difference is that it is not as scalable. These agencies can provide a wide range of development services but their list is dictated by team competencies, and creating cutting-edge products may be unattainable or unreasonably costly. Boutique software companies have a small staff and often do not cooperate with a large number of contractors, which significantly limits the range of services provided.
  3. Staffing company without management. Software companies of this type help you hire developers for your project for a fee. It is important to understand that they do not themselves offer end-to-end software development — such agencies only help you find and hire the necessary specialists.

Cooperation Models: What to Choose

You can cooperate with a software agency on different terms — the choice of a suitable model depends on the specifics of your project and its main parameters, such as size, budget, timing, flexibility, and others. Let’s look at the three most popular options for working with a software development company and choose which one is best for your project.

Fixed Price

This option provides that the project has clear requirements, goals, plans, and desired results; the budget is fixed and does not change during the development process. The main advantages of the model are clarity, certainty, accuracy, and low risk. The main disadvantages are the lack of flexibility, communication, and control.

This model is the best solution for small and short-term projects with minimal flexibility that have a fixed timeline, strict budget, and clearly defined requirements.

Dedicated Team

Within this model, tasks, requirements, and deadlines are agreed upon between the customer and the partner but the goals and individual aspects of the project may change during the implementation process. The main pros of the option are full control, constant communication, and flexibility. The main cons are the high cost for small projects and the long starting period.

This model is best suited for medium and large long-term projects with high flexibility and variable timelines and budgets.

Time & Material

This cooperation option provides that the client pays for the time spent and resources used, regardless of the requirements and timing of the project. The main benefits of the model are convenient calculation, complete flexibility, variability of the workflow, and high quality. The main drawbacks of the model are the variability of cost, unclear requirements, and the inability to exactly determine the number of hours spent on the project.

This model is great for large projects with very high flexibility and highly variable budget and deadlines.

I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

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