Picking a software partner is a multi-month commitment, not a purchase. Get the shortlist wrong and you lose months of runway; get it right and you gain a team that compounds your product velocity. Here's the process we recommend before signing a contract.
1. Shortlist by proof, not by pitch
Ask for two or three references in your industry or a comparable one, and actually call them. Ask what broke, how the vendor handled it, and whether they'd hire the same team again. A polished deck tells you nothing about how a company behaves under pressure.
2. Match team structure to your risk tolerance
A dedicated team gives you continuity and deep product context but requires you to manage more of the process. A project-based engagement shifts delivery risk to the vendor but usually costs more per feature. Neither is universally better — match the model to how much in-house technical oversight you actually have.
3. Pressure-test communication before you commit
Run a small paid discovery sprint first. You're testing whether the vendor asks the right questions, documents decisions, and surfaces risk early — not just whether they can write code.
4. Read the contract for exit terms, not just price
Confirm who owns the source code and IP on day one, what the offboarding process looks like, and how much notice either side owes the other. The best contracts are the ones you never have to reread in a dispute.