TL;DR
- A good software house has: portfolio with real URLs, client references, clear scope and price before signing, code access after completion.
- 2026 red flags: AI claims without evidence (every company "uses AI"), no portfolio with live URLs, hosting lock-in, no SLA.
- 7 questions that separate solid firms from rushed ones: references, code ownership, final price, maintenance, AI in practice.
- Without verified references (someone who received the project and uses it) don't sign the contract.
- Selection process: 3-5 conversations, 2-3 detailed proposals, 1 phone call with each candidate's reference.
How to choose a software house: why this is a difficult question
Companies worldwide lose millions annually on failed IT projects delivered by software houses without proper verification. The pattern is identical: first conversation with the agency is great, demo is impressive, contract signed, then... delays, changes without communication, product that doesn't work as promised, or developer who disappeared with half the project.
Knowing how to choose a software house can prevent most of these problems. Not all: no selection process eliminates 100% of risk. But the 7 questions below allow you to eliminate 80% of bad choices before you start the project.
Question 1: Show me live projects from your portfolio?
Every agency has a portfolio. The difference is between "we did this project" and "this URL has been working at the client's for the past year and you can access it now."
Check portfolio through the lens of:
- Live URL exists and works: Many agencies show screenshots or "examples" that no longer work or have been replaced by another project.
- Project is in an industry similar to yours: An e-commerce store for a clothing manufacturer and a fleet management system are different competencies.
- Core Web Vitals are acceptable: Go to PageSpeed Insights with the portfolio project URL. If results are below 50: either they don't care about quality, or it's not their actual work.
Question 2: References to clients you can call
A reference without the ability to talk is not a reference. It's a testimonial on a website (easy to fabricate or taken out of context).
A good software house will easily give you a phone number or email to 2-3 clients who completed a project. During the conversation ask:
- Was the project delivered on time and on budget?
- What went wrong and how did the company handle it?
- What did communication look like (daily? once a week? only when something broke?)?
- After project completion, does the agency still respond to questions?
Lack of ability to check references is a hard red flag. Regardless of how good the presentation is.
From my experience: companies that collect bad references know it and don't give contacts. Companies with good references give them willingly because it's a natural element of sales.
Question 3: What's included in the price and what does a change cost?
IT companies price very differently: from fixed price per project to hourly billing. Each model has drawbacks.
Ask about:
- Final price: Is the price in the proposal what I'll ultimately pay? If not: what can change it?
- Changes during development: How much does changing the page layout cost after 50% completion? If the answer is "hourly rate" without stating the rate or without an estimate: prepare for invoices you didn't anticipate.
- Post-deployment costs: Hosting, maintenance, technical support. Are they included in the package? If not: how much do they cost?
An agency that can't provide a final price within 20% accuracy at the proposal stage doesn't have estimation experience. Or deliberately leaves room for add-ons.
Question 4: Who will own the code after project completion?
Surprisingly many contracts contain clauses that the code is the agency's property or is licensed for the duration of the contract. Upon termination: the product disappears.
Ask directly: "After project completion, will I own all the code, database, and can I move hosting to any provider without additional fees?"
The answer must be unambiguous. If it's not: lawyer before you sign.
Question 5: How do you use AI in projects and what does that specifically mean?
This question is crucial in 2026. Every agency says "we use AI." Ask for specifics.
What differentiates agencies:
- Agency A: "We use ChatGPT for writing product descriptions and Claude Code for generating boilerplate in projects. We save 2-3 days on a typical WordPress site project."
- Agency B: "Our methodology is based on AI-first principles and we utilize advanced models..." (no specifics)
Agency A can tell you what specifically, how much it saves, and how it affects your project. Agency B uses AI as a marketing buzzword.
Follow-up questions: Which models do you use? What does AI speed up and what doesn't it? Does AI reduce your cost and is that visible in the client price?
Question 6: What does project handover look like if I want to change companies in a year?
An IT project has a lifespan of several years. During this time you may want to change software houses (agency doesn't respond, prices rise, lack of competencies). Check before you start whether exit is possible.
A good agency delivers:
- Technical documentation (architecture, deployment instructions)
- README with project description for a new developer
- Access to code repository (GitHub/GitLab, not "download ZIP")
- List of dependencies, licenses for external tools
- Database credentials (export, import instructions)
Bad agency: "the project is on our server, when you end the contract we'll give you a ZIP with files." No repo, no documentation, no ongoing access.
Question 7: What does communication look like during the project?
Communication is where IT projects most often fall apart. The agency starts the project with enthusiasm, then goes silent for 3 weeks, and when they finally respond: "we're working, everything is going according to plan" without any evidence.
Ask about:
- Project management tool: Jira, Linear, Basecamp, Notion? Does the client have access and see progress?
- Update frequency: Weekly status update? Access to Slack channel? Demo every 2 weeks?
- Response SLA: Within how many hours will they reply to email? What if the site goes down at 10 PM?
No clear communication process means no project under control.
Verifying AI claims in 2026
Additional test specific to 2026: when an agency declares AI competencies, verify them specifically.
Ask for: example of workflow built on n8n or Make, example of AI agent for a client (not FAQ chatbot), their approach to Cursor or Claude Code in daily work.
If they can't show any specific example: their "AI-first" is marketing, not competence.
More about how AI agents are changing project delivery and how to distinguish real from hype.
Red flags: when a software house is disqualified
Quick stop signal list:
- Portfolio only with screenshots, no live URLs
- No ability to check references
- Price without clear scope
- Hosting lock-in without exit option
- No repository access during the project
- Communication via email once every 2 weeks
- AI claims without any specific example
- Contract without code ownership clause
If you're looking for a software house that answers these questions specifically: we invite you to talk. We quote for free, scope before signing, code ownership in contract. Details in our services.