Top 10 Things to Check Before Hiring a Software Company

Hiring the wrong software company costs more than money. It costs months of lost time, a product that does not work, and the momentum your business needs. We have seen founders recover from bad hires, but it always sets them back by 3-6 months and ₹5-15 lakh.

Here are 10 things to verify before signing any contract. This is the same checklist we recommend to founders who are evaluating StartupSphare — or any other company.

1. Live Portfolio Links (Not Just Screenshots)

Screenshots can be fabricated. Live URLs cannot. Ask for 3-5 links to websites, web apps, or mobile apps they have built. Open them. Use them. Check:

• Does the site load in under 3 seconds?
• Is it responsive on mobile?
• Does the app have real users and genuine reviews?

If a company has only screenshots and PDFs, they either have not shipped much or the work was not good enough to keep online.

2. Relevant Tech Stack

The tech stack should match 2026 standards:

Green flags: Next.js, React, TypeScript, React Native, Flutter, Node.js, PostgreSQL, AWS Red flags: Raw PHP without framework, jQuery-heavy codebases, WordPress for web apps, no TypeScript

Ask specifically: "What frameworks will you use for my project, and why?" A good company explains the trade-offs. A mediocre one just says "we use the latest technology."

3. Discovery Phase Before Coding

Any company that sends you a quote in 24 hours without understanding your product has not thought about your project. A proper engagement starts with a discovery phase:

• 1-2 weeks of scoping
• Output: scope document, architecture plan, timeline, and cost
• Often charged separately (₹30K–₹1L) — this is money well spent

At StartupSphare, discovery always comes first. It protects both us and the client from building the wrong thing.

4. Sprint-Based Delivery With Demos

Ask: "How often will I see working software?"

Good answer: "Every two weeks, at the end of each sprint." Bad answer: "When the project is done."

Sprint demos catch problems early, keep the project on track, and give you real checkpoints. For more on why this matters, see our guide on how long it takes to build an MVP.

5. Code Ownership in the Contract

Read the contract before signing. Look for:

• You own 100% of source code and IP — explicitly stated, not implied
• No license-back clauses that let them reuse your code
• Handoff includes all source code, documentation, credentials, and deployment access

If the contract does not explicitly transfer IP to you, assume it does not.

6. Milestone-Based Payment Terms

Standard industry terms: 30-40% upfront, 30% at midpoint, 30% on delivery.

Red flags:

• 100% upfront payment
• No refund policy
• Vague milestones ("Phase 1 complete" instead of specific deliverables)
• Additional charges for "project management" or "QA" that should be included

7. Client References You Can Actually Call

Ask for 2-3 client references and call them. Questions to ask:

• Did they finish on time?
• Did the cost match the estimate?
• How was communication during the project?
• Did they handle post-launch issues well?
• Would you hire them again? (This is the question that matters most)

8. Post-Launch Support Model

Software breaks after launch. New bugs surface, users request features, OS updates cause compatibility issues. Ask:

• Who handles post-launch support?
• Is it the same team that built the product?
• What are the response times for critical issues?
• Is post-launch support included or billed separately?

9. Team Transparency

You should know who is working on your project. Ask:

• How many developers will work on my project?
• Are they full-time employees or freelancers?
• Can I meet the team before the project starts?
• Will the same team work throughout the project, or will people rotate?

Companies that outsource your work to freelancers without telling you are a risk — freelancers leave, and continuity suffers.

10. Clear Communication Channels

Before signing, establish:

• Primary communication tool: Slack, Microsoft Teams, or similar (not just WhatsApp)
• Meeting cadence: Sprint demos every two weeks, weekly check-ins as needed
• Escalation process: Who to contact if something goes wrong
• Documentation: Where designs, code, and decisions are stored (Figma, GitHub, Notion)

Good communication is not a bonus — it is the difference between a smooth project and a stressful one.

The Quick-Reference Checklist

Frequently Asked Questions

How do I know if a software company is good?

Check live portfolio links (not screenshots), verify the tech stack is modern, ask about their delivery process (sprint-based with demos), confirm code ownership terms, and call 2-3 client references. A company that checks all these boxes is worth evaluating further.

What should I ask a software company before hiring?

Ask about their discovery process, sprint delivery cadence, tech stack choices, code ownership terms, payment milestones, post-launch support model, and team structure. Also ask for live portfolio links and client references.

How much should I pay upfront for software development?

Standard terms are 30-40% upfront, 30% at midpoint, 30% on delivery. Never pay 100% upfront. Some companies also offer a separate paid discovery phase (₹30K–₹1L) before the full project commitment.

Our Services · MVP Development Cost · Best Software Company in Lucknow · Contact Us Author: StartupSphare Team Last updated: August 2026