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How to choose a custom software company in Peru

11 min read·by Jesús Hernández, General Manager at Lain-DS

Choosing who builds your software is a bet with uncomfortable odds: globally, according to the Standish Group CHAOS Report, only around 31% of software projects finish on time, on budget and with the full scope; half end up “challenged,” and nearly 1 in 5 fails outright. The decision that shifts those odds most in your favor is not the language or the technology trend of the moment: it is who you pick. This is an honest guide — written from the builder’s side — of what to ask before you sign, which red flags to watch for and how to read the answers.

31%

of software projects fully succeed (Standish)

19%

fail outright

100%

of the code should end up in your name

3

references of similar size, at minimum

Don’t start with the technology, start with the problem

A serious custom software company doesn’t open by talking about languages or frameworks: it opens by asking about your process, your bottlenecks and your goals. If in the first meeting they sell you technology instead of understanding your business, that’s already a signal.

A good vendor wants to understand what problem you solve before proposing how. That opening conversation — about the business, not the stack — is the best predictor of how the project will go. And if you’re headed into the public sector, that understanding starts even earlier, in the terms of reference (TDR): describing the problem and not locking in the solution is what attracts serious vendors and produces comparable bids.

The questions you have to ask before signing

Seven questions separate a serious vendor from one who will cost you dearly: ownership of the code, who writes your system, warranty, maintenance, references, training and how you see progress. If any answer is vague, that’s where the risk lives.

  1. 01Are the code and the data 100% mine once I finish paying? If it’s not a clear yes in the contract, that’s a red flag.
  2. 02Who is going to write my system — senior engineers, or juniors learning on my dime?
  3. 03What does the post-delivery warranty cover, and for how long are bugs fixed at no charge?
  4. 04How does maintenance work, how much does it cost, and how quickly do they respond to an incident?
  5. 05Will you give me references from 3 clients of similar size and needs, who have been running for years?
  6. 06Does it include training and knowledge transfer for my team?
  7. 07How do I see progress — sprints with demos every few weeks, or do they hand over everything at the end?

How to ask for (and read) references

Don’t ask for “a happy client”: ask for three of your size, with a similar solution and running for years. And ask them the concrete things: is the system still working? does it do what they promised? did they show up when something broke? A lukewarm reference says more than a polished case study.

The case study is written by the vendor; the reference is lived by the client. That’s why a ten-minute call with someone who uses the system every day is worth more than ten pages of portfolio. And ask that they be verifiable: in our case, for example, there’s the central cashier system of a national university and the memberships of a club with 50,000+ members — public sector and high concurrency, two contexts where it’s easy to check whether the system holds up or not.

The red flags

The warning signs are almost always the same: a price on the first call without understanding the scope, evasiveness about who owns the code, and a pitch that only talks about price or speed. A good vendor does the opposite: asks, puts it in writing, and tells you where NOT to spend.

good sign

  • Asks about your process and your goals before the technology.
  • Tells you where it’s NOT worth spending — even if that means not hiring them.
  • Puts ownership of the code and the data in writing.
  • Gives you verifiable references you can actually talk to.
  • Shows you progress in sprints with demos, not at the end.

red flag

  • Throws a price at you on the first call without understanding the scope.
  • Avoids putting in writing that the code is yours.
  • Only talks about price or speed (“your system in 60 days”).
  • Won’t let you speak with current clients.
  • The team that quotes is senior, but the one that builds is juniors.

Price: cheap ends up expensive (and badly-chosen expensive, too)

The lowest price is almost never the best deal in software: you pay twice when bad development has to be redone. But expensive guarantees nothing either. What matters is value — seniority that delivers in fewer hours and with less rework. Compare by scope, not by a loose number.

The right way to compare three proposals isn’t to look at the final number, but at the scope behind each one: what’s included, what isn’t, and what happens three years out with maintenance. We go into detail in the guide on how much custom software costs. And before hiring custom, it’s worth asking whether the process is your differentiator or it’s a commodity better bought off the shelf: a good vendor helps you decide that, instead of always pushing you to build.

What to look for depending on what you need

Choosing a vendor is also choosing for what. Ask for cases in your area, not generic ones: experience in custom development if it’s a web platform, in mobile if it’s an app, in integrations if the challenge is connecting systems, and in the public sector if you’re going through a TDR.

Not every company is good at everything. If your project is a platform or an internal system, look at their experience in custom software; if it’s an app, in mobile applications; if the value is in connecting your ERP, your payments or government entities, in APIs and integrations; if you need to scale or move your infrastructure, in the cloud. And if you’re building for a university or public entity, in software for the public sector and its compliance. Ask them to show you a case similar to yours — not a generic portfolio.

How we work

Our answer to this list is short: senior engineering (whoever designs your system writes it), the code 100% yours, and honesty — we tell you when it’s NOT worth hiring us. And verifiable cases: the public sector and a club with 50,000+ members.

We don’t pretend to be the answer to everything. But if what you’re looking for is a senior team that understands your business before writing code, that leaves you the owner of what it builds and that tells you the truth — even when the truth is “you don’t need this” — that is exactly the way we work. And you can verify it by talking to us, not to a salesperson.

In short

The vendor you choose moves your project’s odds more than any other decision. Choose the one that starts with your problem and not with the technology, the one that puts ownership of the code in writing, the one that gives you references you can actually talk to and the one that shows you progress along the way. Be wary of a price on the first call, of the one who only sells speed and of the one who dodges the question of who owns the code. Don’t look for the cheapest or the most expensive: look for the one who asks you the best questions.

Evaluating us? Ask us the hard questions.

We’ll answer the seven questions straight and give you verifiable references — talking to an engineer, not a salesperson.