Which Types of Companies Offer Custom Software Development?

Types of custom software development ompanies

The market for remote custom software development is quickly reaching the $100 billion mark and continues to grow all the time.  Development projects can range anywhere from a website, customer relationship management databases, email marketing tracking, or financial software for brokers.  What kind of company should you choose when hiring a remote software development team?   Probably the one that will fit your needs, budget, timeline, and organizational culture.   Here is your quick start - a short overview of the marketplace.

Classification of custom software development companies

  • Enterprise level offshore custom software development services
  • Mid-sized software development
  • High-quality level vendors
  • Upstart and freelance services

  Enterprise-level vendors are large companies you normally find in Eastern Europe, India, China, South America, and other offshore types of locations.  These vendors employ hundreds of software developers, software testers, and project managers and normally offer wide range of technologies. These vendors focus on enterprise-level organizations with development budgets in the $500,000 to $1 million range or higher. Should you have a small project, they will view your company as a side project.  If you are looking for more attention with not much money to invest, turn to a smaller company.  

Mid-sized vendors are a scaled down version of the enterprise-level vendors.  They employ just under 100 to a few hundred employees with a goal of covering a vast range of businesses with varying software needs.  These companies cater to those with smaller development budgets. They do not necessarily have clear specialization.  If you are looking to setup dedicated development center – this is a good place to start. Companies will have enough experience and resources on one hand and are motivated and dynamic on the other. The market lace is noisy but if you’ve found the right company, this type can be a good balance between quality and investment.  

High quality level vendors offer quality products and services at a premium price for companies of all sizes from small to enterprise level.  These vendors often pay their developers more than other companies so they get a talented workforce together.  Depending on you location, you can still expect to save money over in-house operations.  They are notable for strong communication and management skills, they are offering business solutions rather than development services. Usually, they as well have a very clear specialization.  

Upstart service vendors hire temporary on the spot software developers with proven track records of software development projects.  This type includes freelancers - a wide range of developers from novice to expert level.  These vendors are often newer companies with few partners and developers.  If you have a short-term development project this may be one of the vendor types to consider as you can get away with finding a great value for these up and coming vendors who don’t start off charging premium prices. This type of vendor can be one of the highest risks if not careful.  You may receive tempting offers from them such as high-speed work at low rates with the expectation to completely meet your needs.  Be wary of this vendor type as you may experience issues from time delays, miscommunication, and low-quality development. They are easily found on online marketplaces such as This type of vendor can be one of the highest risks if not careful.  You may receive tempting offers from them such as high-speed work at low rates with the expectation to completely meet your needs.  Be wary of this vendor type as you may experience issues from time delays, miscommunication, and low-quality development. They are easily found on online marketplaces such as Upwork, Freelancer.com and others.   Make an informed decision.  Read more on how to increase efficiency of your dedicated development team.

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