9 biggest mistakes in software development partnership and how to avoid them
According to Statista, 64% of IT leaders globally partnered with external teams for software development in 2024. With over 10,000 software development companies operating worldwide, choosing the right technical partner has never been more critical – not only for cost efficiency but to gain access to top engineering talent, strategic insight, and domain-specific expertise.
When should you bring in a software development partner?
Companies generally turn to their software development partner for these key reasons:
- expert help (technical and/ or domain expertise)
- save money
- improve efficiency and decrease the risk
- faster upscaling and downscaling
When internal resources, projects, and responsibilities are stretched, IT projects become stalled and expensive. Billions of dollars are spent on software development each year so hiring a professional development team delivers the resources and knowledge you might be lacking and allows you to complete projects on time. Products are often of better quality, too.
Whether you’re scaling or saving, the right technical partner can help you deliver with speed, quality, and confidence.
Key questions to ask when choosing your software development company
In order to avoid setbacks such as misaligned priorities, costly delays, or results that miss the mark, it’s worth slowing down and asking the right questions from the very start. Here’s what to consider when choosing a software development company, technical partner, or IT team extension for long‑term success:
- Do you have the time and the right resources to deliver your IT projects?
- What is the true cost of late/unfilled software development projects?
- Do you have the necessary internal resources?
- Do you have internal software development expertise?
- What knowledge and skills gaps do you currently have?
- Are you willing to take on more staff?
- Can the company in question fill your team’s knowledge and skills gaps?
- Are you on a budget and deadline?
Software development partnerships: what’s driving demand in 2025?
Software development continues to evolve at pace, and businesses are adapting their strategies to keep up. In 2025, global technology spending is expected to reach $4.9 trillion with robust 5.6% growth, with a significant share directed towards digital transformation and product innovation.
More and more companies are teaming up with software development partners to access hard-to-find skills, speed up delivery, and stay focused on their core business. This approach has proven more beneficial than managing everything in-house. It allows companies to scale development capacity flexibly, integrate advanced technologies, and bring new ideas to market faster.
These partnerships are no longer limited to just delivering code – today's technical partners contribute to strategic decision-making, risk management, and long-term planning. The emphasis is on collaboration, shared goals, and building digital products that offer a lasting competitive edge.
Mistakes to avoid when choosing a software development partner
Mistake #1: Failure to consider all roles needed within the software development cycle
Often there is focus only on software developers (programmers), but you should choose the partner who has talent in all roles in the development lifecycle as you may need them down the road. There are many different roles needed in the software development lifecycle, and the ideal team is made up of the following roles:
- poduct owner
- scrum Master/project manager
- UX & UI designers
- business analyst
- software engineers
- data scientist and data engineers
- DevOps engineers
- team lead
- tech leads (sometimes a team lead can take ownership of the tech lead role)
Mistake #2: Choosing the cheapest software development partner
This might sound budget-friendly, but a fairly priced partner is more likely to have the resources and experience to fulfill your project and meet your needs. Ask about similar projects, supported technology stacks, and how the project and processes work. Check case studies, referrals, and portfolios, and you can easily research companies and leaders on LinkedIn.
Mistake #3: Hiring the first software development company
This is an easy mistake to make when you’re under pressure and over budget. But choosing an incompatible partner makes for further hurdles down the line. Check that they mirror your values, needs, and goals. Have a clear idea of the kind of communication and feedback you expect, so you can assess whether a technical partner is the right fit for you.
Mistake #4: Neglecting the expertise of your business domain
One of the most common (and costly) mistakes companies make when choosing a software development partner is overlooking whether they truly understand the specifics of their industry.
Domain expertise goes far beyond general technical skill. A partner with hands-on experience in your field brings valuable insights into the challenges, workflows, and nuances your business faces daily. They’re familiar with the technologies most commonly used in your sector, follow industry trends, and can recommend solutions that aren’t just functional, but strategically impactful.
Ultimately, this expertise enables them to deliver innovative ideas and build products that align with your business goals and give you a real competitive edge.
Mistake #5: Failing to define your expectations
Consider your goals, your budget, your input, your needs – you are the customer. Discuss and record your objectives internally and with your potential partner.
When expectations aren't clearly defined from the beginning, even a strong partnership can run into problems. Without alignment on goals, priorities, timelines, and what success looks like, there's a real risk of miscommunication and wasted effort.
A good software development partner can guide you through this process, but it’s up to you to be clear about your vision. Setting the right expectations early on helps everyone move in the same direction and builds trust from day one.
Mistake #6: Choosing vendors in time zones that are not convenient for your team can present delays and frustration
Working across vastly different time zones can have a bigger impact than many teams expect. Some of them include delays in communication, slower decision‑making, and longer feedback loops, especially when urgent questions arise.
To avoid this, ask where the head office is, who will support your project and how communications and updates will be effectively managed. The best software development partners have a global presence, with teams and offices in key time zones, ensuring seamless collaboration and responsiveness – whenever you need it.
Mistake #7: Failure to pay attention to language and cultural barriers is often overlooked but can be costly
Language and cultural differences aren’t just about accents or time zones – they can affect how well your teams understand each other, interpret feedback, and work together every day. Even small miscommunications can lead to misaligned priorities, delays, or extra rework later on.
Check that your potential technical partner's team is proficient in your preferred language and that there is a good cultural fit with your team.
Mistake #8: Failure to set up a clear governance and project management structure
Without a proper project governance framework, you risk lengthy decision-making, ambiguity, lack of responsibility and project failure. Instead, create a clear governance and project management structure that enables ethical, effective, and strategically aligned decisions that consider all stakeholders and ensure your project objectives are met.
Mistake #9: Wasting your hired talent
Allow your experienced hands to support and collaborate with your external software developer. How can you work together? How can you avoid duplication? It's important to interview and get to know each extended team member. By doing so, clients will be aware of team members’ individual strengths and competencies, thus, can better plan newly hired talents. Flexibility and agility start with your chosen partner.
Are you still looking for an experienced software development partner?
Vega IT helps clients all over the world achieve exceptional business outcomes.
With more than 17 years of industry expertise, we have over 900 software development professionals including software architects, product owners, business analysts, project managers, DevOps, and QA engineers, who work as an extension of your team. We don’t just deliver code – we collaborate closely with your people, share knowledge, and contribute to your long‑term success.
Please review the case studies within your industry to see (exactly) how we can help and get in touch.