How to Choose a System Development Company | Step-by-Step Guide, Search Methods, and Cost Overview

"I don't know how to choose a system development company."
"I don't even know where to start looking."
"Is the estimate from the system development company I'm considering reasonable?"

If you are considering outsourcing to a system development company, you might have these questions.

This article provides a clear guide on how to choose a system development company. It comprehensively covers everything from key selection criteria to how to search for a company.

In the latter half of the article, we will thoroughly explain cost estimates based on project requirements and important points to consider when selecting a system development company. If you're struggling with this decision, be sure to check out this article.

Akira Shimazoe

CEO of Solashi Japan LLC. Engaged in the development and operation of internal systems at Suntory. Founded Yper Inc., serving as CTO and CPO, contributing to product launch and growth.

[3 Steps] How to Choose a System Development Company

We have summarized the process of selecting a system development company into three main steps.

Organize your project requirements
Research system development companies
Compare multiple companies and choose the best one

Let's go through each step in detail.

Organize Your Project Requirements

First, organize your project requirements.

Clearly define the role of the system or application you want to develop and what business goals you aim to achieve.

Clarify the purpose and goals of the system development for your company and summarize them in a way that can be easily shared internally.

To ensure smooth project execution, it's important to define as many details as possible in the early stages. At the very least, you should determine the following items before selecting a development company.

System/App role
Business goals
Type of system to be developed
Budget
Schedule
Quality standards

We will discuss cost estimates later, so be sure to refer to that section as well.

Research System Development Companies

Once your project requirements are clear, start researching system development companies. Instead of choosing one company right away, obtain estimates from multiple companies in parallel and compare pricing and services.

Initially, hold meetings with multiple companies. If none of them meet your criteria, consider other options.

We will explain how to search for system development companies later. Generally, you can leverage referrals, web searches, or ordering support services.

The following article introduces recommended system development companies, so feel free to check it out.

Compare Multiple Companies and Choose One

After comparing multiple companies, finalize your choice by selecting the most suitable one. We will discuss specific selection criteria later, but when comparing, focus on the following points.

[Key Comparison Points]

Development cost (pricing, man-hours, etc.)
Company size
Track record (number of projects, experience with similar projects, etc.)
Proposal details (technologies used, development methods, deliverable formats, etc.)
Responsiveness (communication skills, flexibility in handling specification changes, etc.)
Post-delivery support in case of issues
Project management system

It's a good idea to summarize these points in an Excel or Google Spreadsheet for easier internal sharing.

Before signing a contract, ensure that the scope of work, deadlines, quality assurance, and payment terms are clearly defined. If you have any uncertainties, be sure to clarify them before proceeding with the contract.

6 Key Points for Choosing a System Development Company

Here are six important points to consider when selecting a system development company.

Specialized expertise
IT skills
System operation and maintenance support

Experience with similar systems

Commitment to understanding client needs

Proposal capabilities

Specialized Expertise

Each system development company has different areas of expertise.

For example, system development varies from website creation to app development, web services, AI, and IoT.

Some companies also specialize in certain fields, such as financial payment systems or medical systems.

Evaluate the compatibility between your project and the company’s strengths. Checking their development languages and frameworks is also ideal.

IT Skills

It’s crucial to assess whether the company possesses the necessary IT skills to meet your project requirements.

Not only should you evaluate the overall quality of the company, but also the individual capabilities of its engineers.

Lack of engineering skills can lead to increased development time or project delays.

Review the engineers' skills, experience, and how they stay updated with the latest technologies.

Additionally, it’s recommended to check whether the company’s expertise aligns with your existing systems.

System Operation & Maintenance

Ensure the company provides adequate system operation and maintenance services.

People often focus only on the development phase, but post-release operation and maintenance are just as important.

Even after development, adjustments and improvements may be necessary. This is especially true for small-scale launches where cost and time constraints are prioritized.

Some development companies do not offer maintenance services, which can be problematic.

In such cases, you would need to hire a separate company for maintenance, adding unnecessary complexity. If you plan to outsource maintenance, choose a company that offers end-to-end support.

Also, confirm whether they provide knowledge transfer for system maintenance.

Experience with Similar Systems

Checking if the company has development experience similar to the system you want to create is another important checkpoint.

In addition to the number of projects and their scale, make sure to check whether they have relevant experience in your industry or similar project types.

Also, some information might not be available on the company's website. During discussions, ask about project durations, resources available, and any other specific concerns to get accurate information.

By asking questions like "What aspects were emphasized in this case?" or "What factors contributed to the success?", you can assess the company’s expertise and the quality of their work.

Willingness to Understand

It’s crucial that the system development company demonstrates a willingness to understand your needs. Choose a company that actively listens to your objectives and strives to understand your business.

The relationship with the company's representative is also important. If the chemistry isn’t right, it can lead to communication issues or difficulty in progress management.

The ideal representative will not only understand your goals but will also offer constructive advice to benefit both sides.

Proposition Skills

Select a company with strong proposition skills.

While meeting deadlines and delivering results is important, choosing a company with strong proposal capabilities will ensure that your product is improved and developed to its full potential.

A company that proactively offers suggestions for business growth will become a valuable partner in solving IT and digital transformation challenges.

Our company, Solashi Co., Ltd, has multiple project managers with experience in startup business establishment, CTO roles, and IT consulting in Japan.

We provide consulting by understanding your business needs and drawing on similar case studies to suggest necessary IT services.

We propose development outlines tailored to the difficulty and sequence of your business launch, helping you quickly grasp a concrete development image.

If you’re interested in consulting, feel free to contact us at Solashi Co., Ltd.

Japanese PMs Handle Communication

Looking for an Offshore Development Company

For such individuals, we recommend Solashi’s Vietnam offshore development

Try a Free Consultation

Checking if the company has development experience similar to the system you want to create is another important checkpoint.

In addition to the number of projects and their scale, make sure to check whether they have relevant experience in your industry or similar project types.

By asking questions like "What aspects were emphasized in this case?" or "What factors contributed to the success?", you can assess the company’s expertise and the quality of their work.

Willingness to Understand

The relationship with the company's representative is also important. If the chemistry isn’t right, it can lead to communication issues or difficulty in progress management.

The ideal representative will not only understand your goals but will also offer constructive advice to benefit both sides.

Proposition Skills

Select a company with strong proposition skills.

While meeting deadlines and delivering results is important, choosing a company with strong proposal capabilities will ensure that your product is improved and developed to its full potential.

A company that proactively offers suggestions for business growth will become a valuable partner in solving IT and digital transformation challenges.

Our company, Solashi Co., Ltd, has multiple project managers with experience in startup business establishment, CTO roles, and IT consulting in Japan.

We provide consulting by understanding your business needs and drawing on similar case studies to suggest necessary IT services.

We propose development outlines tailored to the difficulty and sequence of your business launch, helping you quickly grasp a concrete development image.

If you’re interested in consulting, feel free to contact us at Solashi Co., Ltd.

Japanese PMs Handle Communication

Looking for an Offshore Development Company

For such individuals, we recommend Solashi’s Vietnam offshore development

Try a Free Consultation

Request Details	Estimated Implementation Cost
EC Site	Package Development: Approximately 1 million to 5 million yen, Scratch Development: Approximately 5 million yen and up
CMS	Package Development: Approximately 500,000 to 1 million yen, Scratch Development: Approximately 2 million yen and up
Customer Management System	Package Development: Approximately 500,000 to 2 million yen, Scratch Development: Approximately 2 million yen and up
Video Streaming Service	Package Development: Approximately 3 million to 10 million yen, Scratch Development: Approximately 20 million yen and up
Review Site	Package Development: Up to 500,000 yen, Scratch Development: Approximately 500,000 yen and up

EC Site

An EC site refers to a general website used to sell a company's products online.

For package development, it can be developed from approximately 1 million yen, while for scratch development, it can be developed from approximately 5 million yen.

CMS

CMS (Content Management System) is a system that allows you to create and update websites without specialized knowledge or complex coding.

The cost of CMS development greatly varies depending on the content and scale, but for package development, it starts at approximately 500,000 yen, and for scratch development, it starts at approximately 2 million yen.

If using an open-source software (OSS) like WordPress, the cost may be further reduced.

Customer Management System

A customer management system is a tool that aggregates and centrally manages customer information. It is also useful for marketing, such as managing email newsletters and campaigns.

For package development, it can be developed from approximately 500,000 to 2 million yen, and for scratch development, it starts at approximately 2 million yen. Generally, the more customizable the system, the higher the cost.

Video Streaming Service

Video streaming services such as webinars or subscription-based VOD (Video on Demand) services can also be set up within a company's website.

The cost greatly varies depending on the scale and features, but for package development, it ranges from approximately 3 million to 10 million yen, and for scratch development, it starts at approximately 20 million yen.

Review Site

For a simple review site, such as one mainly based on text posts, it may be possible to create it for less than 500,000 yen with package development.

If additional complex features are added and customization increases, the cost will rise, with scratch development starting at approximately 500,000 yen being a rough estimate.

Things to Keep in Mind When Choosing a System Development Company

Here are some points to keep in mind when selecting a system development company.

It is not advisable to completely outsource system development to the company
Set the purpose, budget, and delivery deadline for IT investment

It is Not Advisable to Completely Outsource to a System Development Company

Some people may prioritize reducing internal effort and delegate the entire development process to a development company. However, it is essential to check key points at various stages in system development.

For example, even when obtaining an estimate, it is not advisable to completely outsource simply because your company lacks knowledge.

This could lead to problems later, such as "additional costs incurred" or "expected features were not included."

Rather than outsourcing completely, stay in contact with the person in charge and regularly check and share both parties' situations.

Setting the Purpose, Budget, and Deadline for IT Investment

When selecting a system development company, be sure to decide on the purpose, budget, and delivery deadline for your IT investment.

If these three factors are not decided, the system development company will not be able to estimate the required effort or envision the final outcome.

As a result, the contents of the estimate will become vague, and even if you request multiple estimates, it will be difficult to make comparisons.

There is also a risk of additional costs, so always make sure to decide on the purpose, budget, and deadline in advance.

If You Are Struggling with Choosing a System Development Company, Contact "Solashi"

This article has introduced how to choose a system development company, key selection points, and methods for finding the right one.

Even though there are many system companies, their features and strengths vary, so it is important to compare multiple companies and make a decision. Checking the compatibility with your company's existing systems is also crucial.

Additionally, it is important to choose a company that can efficiently advance IT and DX transformation after understanding your company's challenges. If you are not familiar with system development or are outsourcing for the first time, a company that also provides consulting services would be suitable.

If you are unsure about selecting a system development company, please feel free to contact our company, "Solashi Co., Ltd." We can provide high-quality system development while keeping costs down.

Our company has several Japanese project managers with experience in business launches and startup projects. Even if this is your first time outsourcing system development overseas, you can rest assured with our services.

Additionally, we have many engineers who are skilled in advanced technologies such as blockchain and AI, and we can handle a wide range of fields from B2B to B2C. If you are interested, please feel free to consult with "Solashi Co., Ltd."

Akira Shimazoe

Representative of Solashi Japan LLC. Born in April 1989 in Fukuoka Prefecture. Graduated from the Graduate School of Information and Mathematical Sciences at Osaka Prefecture University. Joined Suntory System Technology Co., Ltd., an IT subsidiary of Suntory Holdings, in 2014. Broadly responsible for the development, operation, and implementation of vending machine delivery management, efficiency improvements, and sales management systems. Founded Yper Inc. in 2017, serving as CTO and CPO. Contributed to the launch and growth of the app-linked delivery bag "OKIPPA." Selected for Toyo Keizai's prestigious "Amazing Venture 100" and Forbes' "Forbes 30 Under 30 Asia 2019."