July 2021

The motto “Go digital or go home” has proven to work its way with the increasing digitalization in recent years. Businesses are more inclined towards hiring IT services today than ever before, adding to the exponential increase in the demand for IT services. Companies looking for IT services turn to software development consultancy companies due to the convenience and cost-effectiveness of this model. The software consultancy market size reached $162.32 billion in 2020, which is a testament to the growing popularity of the model.



This article will address the pros and cons of the software development consultancy model and what steps you should take before hiring a company for the delivery of software development and consulting services. 


Software development consultancy

Software development consultancy stands for providing expert IT knowledge to companies and possible solutions for their IT-related problems. It is used by companies and businesses alike that are in need of an outside unbiased opinion for a particular business move related to technology. 

The software development company has software experts that extend their opinions on such matters. Besides this, software development and consulting mean providing companies with IT service to implement the recommended solutions. From this point, the company functions as a software development company rather than a consulting company. In simple words, these companies perform two functions: first, they let you identify the problem and then their experts help you implement the solutions subsequently. 



Key responsibilities of a software development consultancy

The main responsibility of a software development consultancy is to advise with optimal solutions for the business that aligns with their business goals. 

Following are some of the main responsibilities of software development and consulting company:

  • The consultants need to gather all the information including the business scope, industry, objectives, and workflow about the business they are about to assist. This helps in improving the process and better assist the client.
  • After gathering all the information and thorough research regarding the technical query, the consultant should advise solutions to be implemented within the available resources.
  • If the suggested solution requires development from scratch, then the consulting team should work in collaboration with the development team to oversee the process and to have the deliverable as per the client’s requirements. This allows the company to act as an IT service provider as well.
  • The resultant solution should work smoothly in integration with the company’s business processes. The development team and the consultant team test the product together to ensure that it is bug-free and works effectively. 


Pros and Cons of hiring software development consultant company

There are pros and cons to everything and software development consultancy is no exception to it. We will list the pros first and then the cons. 


Some of the pros of these services are listed down below:

Expert opinion

Software development and consulting companies always work with cutting-edge technologies and give out expert advice to businesses. They will help you make the best decisions by aiding in with useful and unbiased information about the trending technologies to help with specific problems.


Cost minimization is one aspect that every company likes to incorporate into their business. Permanent consultants can be time-consuming and it can be costly as well. The median annual salary of a consultant is $76,500.

Recruiting an individual as an in-house consultant can be time-consuming and costly instead you can contact a consultant company providing services. Different companies have different rates and a talent pool of specialists to hire experts from. This will let you hire consultants that will offer the optimal solutions for your business.

Minimize risks level

Consulting a professional company can lessen the risks associated with the introduction of solutions. Experienced software development consultants know the requirements and how to deliver solutions in accordance with the stated requirements. 


Now to the cons of this model in order for you to make an informed decision:

Communication barrier

Working with professionals from across the globe seems exciting, but the only impediment is the language and cultural differences. Communication difficulties can arise and therefore can lead to misunderstandings and delays. Professional and reputed companies have systems in place to cater to the needs of the clients, overcoming these shortcomings and barriers.

Time difference owing to geographical differences

This is another impediment to working with foreign consulting companies. Different time zones can make it difficult to set a mutual time for discussions and meetings. This concern should be considered before hiring a company. This is not an unsolvable problem, as it can be solved with mutual agreement and consensus. 


Ways to hire software development consultants

It is important to know what platforms and places are there to look for software development consultancy companies. This determines the prices, workflows, and talent pool and where can you look for the right talented people for your project. There are different types of companies for you to choose from. For example, onshore, nearshore, and offshore companies. 

Onshore companies

The highlighting feature of this type is that software consulting company operates in the same country as you are. They might be in another city, region, or location but most importantly they will be in the same country as you are. This makes it a convenient option, as there will be no language and cultural differences, and workflow will be smooth and easy. It has one disadvantage, as it costs more than the other options if you are in the USA, Canada or Australia. According to Clutch and GoodFirms, the average hourly rate can start from $150 and above in these regions.

Nearshore companies

These are the companies located in your neighboring countries and the time difference would be around 1-3 hours. For example, if you’re in the USA and hiring someone from Mexico, the time difference will be of 1 hour which makes it convenient to work together. Another example is if you live in Poland, then you can find an outsourcing vendor in Ukraine, Germany, or the Czech Republic. This type is more cost-effective as compared to the onshore one, as the hourly rate in Ukraine doesn’t exceed $50, while the rate in Germany ranges from $80 to $100 dollars per hour.

Offshore companies

Offshore companies are not only located in other regions of the world but have considerable time differences that can create language and cultural differences. The following pictures illustrate an example of how offshore companies work and the time differences. This type offers the most number of options, with the most effective costs if you can develop a mechanism to work around the time. 



If you’re in need of software development and consultancy services, you can reach out to us for the best possible solutions for your business.



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