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How to Choose a Software Development Company in India (2026): 27 Questions + Scorecard + Contract Checklist

A 2026 buyer guide to choosing a software development company in India with a vendor scorecard, contract checklist, red flags, and 27 hiring questions.

Digital Services By Codeloom Technologies 6 min read
  • Vendor scorecard + 27 questions to compare agencies fairly.
  • Contract checklist with SOW and acceptance criteria.
  • Best-fit paths for website, app, ERP, and eCommerce buyers.
How to choose a software development company in India 2026 buyer checklist
In focus Digital Services

Last updated: Feb 4, 2026. Changelog: added vendor scorecard, contract checklist, and download pack.

To choose the right software development company in India in 2026, evaluate (1) relevant project experience, (2) delivery process, (3) team seniority, (4) security practices, (5) ownership and documentation, and (6) contract clarity (SOW + acceptance criteria + change requests). Use a vendor scorecard to compare options on the same scale before signing.

If you want to choose software development company in india without costly mistakes, this guide is for you.

Codeloom Technologies

Written by Codeloom Technologies

Delivery and product team. Focused on practical buyer guidance and risk reduction.

Who this is for

  • Founders hiring their first product team
  • Operations teams doing ERP vendor selection checklist reviews
  • Product owners handling app development company selection
  • Marketing teams choosing web partners for revenue sites

What this guide will not do

  • It will not pick a vendor for you.
  • It will not replace discovery or legal review.
  • It will not give a one-size-fits-all price.

The #1 Mistake Buyers Make (and how to avoid it)

They compare vendors by price instead of risk. That creates delays, scope creep, and vendor lock-in. Use Pricing for ranges, but decide by outcomes and risk control.

Scope creep curve showing small change to large delay
Small scope changes compound into large delays.

The 60-Second Vendor Scorecard (Downloadable)

Score each vendor from 0 to 5. This software development company checklist forces real comparisons.

Category (0-5)What to look for
Similar-project proofReal case studies, references, measurable outcomes
Communication & sprint rhythmWeekly demos, clear PM, written updates
UI/UX capabilityResearch, prototyping, usability testing
Engineering qualityTesting depth, CI/CD, code reviews
Security practicesAccess controls, logging, secure data handling
Documentation + handoverRepo access, runbooks, API docs
Ownership/IP clarityClear IP transfer, repo handover
Post-launch supportWarranty, monitoring, response times
Timeline realismDiscovery and QA included
Cost transparencyLine items, milestones, change requests
Vendor scorecard table for software development company selection
Score vendors from 0-5 across delivery, quality, and trust.

Want this scorecard in Google Sheet? Request a Free Audit.

Download Pack (Free): Scorecard + RFP + SOW Checklist

Download pack includes:

  • Vendor scorecard (Google Sheet)
  • RFP template (1 page)
  • SOW checklist (acceptance criteria + milestones)
Get the templates

27 Questions to Ask Before You Hire (Grouped)

Use this section when you are thinking about how to choose software development company partners. These are the most common questions to ask software development company teams.

Group A - Delivery & Process (7)

  • How do you run sprints and demos? See Our Process.
  • Who is the PM and what is the weekly update format?
  • How do you manage scope changes (change request process)?
  • How do you estimate timelines for discovery, design, dev, QA?
  • What does a typical weekly sprint report include?
  • How do you validate acceptance criteria before build?
  • How do you track risks and blockers?

Group B - Team & Quality (7)

  • Who will actually code (seniority mix)?
  • What is your testing approach (unit, integration, manual)?
  • How do you do code reviews and QA sign-off?
  • How do you handle performance testing?
  • What tools do you use for CI/CD?
  • What is your bug SLA in week 1 after launch?
  • Can we meet the team before we sign?

Group C - Security & Ownership (6)

  • Who owns source code and IP after payment?
  • Do we get repo access from day 1?
  • What documentation will you provide at handoff?
  • What security controls exist for data and access?
  • How do you handle credentials and secrets?
  • Where can we review your policies? See Trust Center.

Group D - Cost, Timelines, Support (7)

  • Fixed vs hourly vs dedicated team - what fits?
  • What is included in maintenance?
  • What happens after launch?
  • How do you handle change requests that shift cost?
  • Can you show a realistic timeline with QA and buffer?
  • What is your refund or termination policy?
  • What is the billing model for additional features?
Timeline chart from discovery to launch
Discovery and QA must be visible in every timeline.

Red Flags (These kill projects)

  • No written scope, only WhatsApp discussion
  • No repo access
  • No acceptance criteria
  • Everything is included (usually means nothing is defined)

- No testing plan or release checklist

  • No warranty or post-launch coverage
Red flags checklist for software development company selection
Watch for red flags before you sign a contract.

Contract Checklist (Software Development Contract Checklist)

A software development contract checklist should protect you from scope creep, delays, and unclear ownership. Must-have items:

  • MSA + SOW structure (rules + project scope)
  • Clear deliverables and milestones
  • SOW acceptance criteria software project definition of done
  • Change request process (scope, time, cost approval)
  • IP ownership and repo handover
  • Payment tied to acceptance
  • Warranty and support terms
  • Termination and handoff clause
Contract flow diagram for MSA, SOW, milestones, acceptance, payment
Contract flow: MSA, SOW, milestones, acceptance, payment.

Best Fit Paths (Decision Tree)

If you are selecting a vendor, match your need to a focused path.

Decision tree for website vs app vs ERP
Use a decision tree to match the right service path.

Case-style mini examples

Startup MVP

Prioritize one core flow, a clear SOW, and weekly demos before scaling.

Clinic system

Map modules first: appointments, billing, staff roles, and audit logs.

School ERP

Define role-based access, reporting, and parent app scope early.

Retail rollout

Plan inventory sync, POS stability, and offline fallback scenarios.

FAQs

Q: How do I compare 3 software companies fairly?

A: Use a scorecard, score each vendor from 0-5, and run the same questions for all.

Q: What clauses prevent scope creep?

A: A clear SOW, acceptance criteria for each milestone, and a formal change request process.

Q: Should I choose fixed price or hourly?

A: Fixed price for stable scope, hourly for evolving scope, or dedicated team for long-term products.

Q: What ensures I own the source code?

A: IP transfer clauses, repo access, and handoff documentation in the contract.

Q: How long should discovery take?

A: Small projects can take 1-2 weeks; complex systems can take 3-6 weeks.

Q: What causes ERP failure?

A: Weak process mapping, messy data, and low change management.

Q: What is the best way to check vendor quality?

A: Review similar projects, speak to references, and ask about QA and code reviews.

Q: How do I validate timelines?

A: Ask for a plan that includes discovery, QA, and buffer time.

Q: What documentation should I receive?

A: Repo access, environment setup, deployment steps, and API docs.

Q: Can I replace a vendor later?

A: Yes, if the contract includes handoff, code ownership, and clean documentation.

FAQs

Quick answers to the most common questions.

How do I compare 3 software companies fairly?

Use the same scorecard for all vendors and rate each category from 0 to 5.

What clauses prevent scope creep?

A clear SOW, written acceptance criteria, and a formal change request process.

Should I choose fixed price or hourly?

Fixed price works for stable scope, hourly for evolving scope, and dedicated team for long-term products.

What ensures I own the source code?

IP transfer clauses, repo access, and handoff documentation in the contract.

How long should discovery take?

Small projects can take 1-2 weeks; complex systems can take 3-6 weeks.

What causes ERP failure?

Weak process mapping, messy data, and low change management.

What questions should I ask before hiring a software development company?

Ask about delivery process, team seniority, testing, security, ownership, and change requests.

How do I validate timelines?

Ask for a plan that includes discovery, QA, and buffer time.

What documentation should I receive?

Repo access, environment setup, deployment steps, and API docs.

Can I replace a vendor later?

Yes, if the contract includes handoff, code ownership, and documentation.

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