Software development companies in Panama: What to evaluate before hiring

In recent decades, Panama has emerged as a focal point for many global companies seeking high-quality software development companies. This phenomenon is due to a unique combination of factors that make Panama an attractive place for international business.

First, the country has a highly educated and specialized technology workforce, with talents ranging from programmers to designers and systems analysts. Additionally, Panama offers a robust technological infrastructure and high-speed internet access, essential for software development in today's digital world.

Another crucial aspect is its strategic geographical position, facilitating collaboration with companies in North and South America. Additionally, the Panamanian government has implemented business-friendly policies and offered tax incentives, which has attracted foreign companies to establish themselves in the country.

In this article, we are going to delve into the benefits of hiring a software development company in Panama and, in addition, the aspects that you should evaluate before starting the collaboration.

What aspects to evaluate before hiring a software development company in Panama?

But, before hiring a software development company in Panama, it is important that you evaluate some key aspects that will help you guarantee the quality, compliance and profitability of your project.

Review the company's portfolio and experience

When reviewing the profile of a software development company in Panama, look for evidence of projects similar to yours, both in complexity and industry sector. Ask about the methodologies, tools and standards they use to develop software. Request references from previous clients and verify their level of satisfaction.

Evaluate the human and technical team

Make sure that the software development company in Panama has qualified, certified and updated professionals in the technologies that your project requires. Learn about the profile and competencies of team leaders, developers, testers and analysts. Verify that there is good communication and coordination between them and with you.

Compare the costs and benefits

Don't get carried away by the lowest price offered by a software development company in Panama, but by the one that offers you the best quality-price ratio. Consider factors that can influence the final cost, such as scope, time, complexity, and unforeseen events. Ask for a detailed and transparent budget, including deliverables, milestones and payment terms.

Establish a clear and flexible contract

Clearly define the objective, scope, specifications, requirements and expectations of your project before the software development company in Panama. Establish quality criteria, monitoring metrics and success indicators. Agree on the modalities of communication, reporting and feedback. Anticipate possible changes or contingencies that may arise and how they will be managed.

Red flags you should pay attention to when hiring a software development company

Whether or not you are a software development company in Panama, you should always be attentive to these red flags that some service providers present, to avoid failures, loss of time and money during the creation of your project.

• When the estimate is too good to be true

“A big consideration for every software development project is time and cost. For that reason, it's a smart tactic to request quotes from several different teams so you can compare rates and get the best deal possible. However, don't let a surprisingly low estimate blind you”, they recommend in an article in Forbes magazine.

Calculating the cost of a project is complex, even for the most experienced software development companies in Panama. If someone gives you a quote without knowing all the details or presents a figure that seems too good to be true, that's a major red flag to look out for.

• When they can't justify how they arrived at the project estimate

If a software development company in Panama cannot provide a detailed explanation of how they have arrived at the cost estimate and schedule they present to you, there is a real possibility that they are trying to deceive you.

The company knows that once you sign a contract, you are committed, no matter what happens; therefore, it has no incentive to be fully transparent before then. Calculating an accurate budget is incredibly difficult, and an accurate estimate will indicate that the company has invested time and effort in conducting a rigorous evaluation that fits within your budget.

• When communication is not clear

Lack of communication or late responses to your questions may also reflect a lack of customer service and concern for your needs. A company that does not prioritize efficient communication may be more focused on its own internal operations than on establishing strong relationships with its customers.

This lack of commitment can negatively affect the quality of the service you will receive and can generate frustration and distrust in the client-company relationship. Open and responsive communication is essential to establishing successful collaboration and ensuring all parties are on the same page at every stage of the project.

• When they do not have enough experience in their industry

This lack of experience in your industry can translate into a lack of knowledge of the complexities and particularities that your business faces on a daily basis. Each sector has unique challenges and specific requirements that must be understood and appropriately addressed to ensure project success. A company without experience in its industry might not be aware of the latest trends, specific regulations or customer expectations that are essential for developing software tailored to your needs.

Evaluating these aspects will allow you to make an informed decision when choosing a software development company in Panama. Remember that the right choice can make all the difference in the quality, efficiency, and long-term success of your software project.

Do you need a software development company in Panama? At Rootstack, we have more than 13 years of experience supporting companies in their digital transformation. Contact Us!

WE RECOMMEND YOU THIS video