Hiring Software Development: Where Many Companies Lose Money

I will tell you story they tell me 3 times per month:

"Bro, I hired developer for $12M. He said 2 months. It is 6 months, he asked $10M more, blocks me at times and what he showed does not work. Can you help me?"

And I have to tell him yes, but we have to throw almost everything and start from zero. He lost $22M and 6 months.

This happens because hiring software is not like hiring accountant or lawyer. Here they can sell you smoke very easy if you do not know what to ask.

1. The Hourly Price With No Ceiling: "Calm, $80k per hour"

Scam: They quote by hours. Sounds cheap. Start and each week they say "we need 20 more hours". You end paying double and cannot say no because you already paid half.

How to avoid: Demand closed price per deliverable.

2. The "Everything Is Possible": Who Says YES to Everything

Scam: You say "Can you make me system that controls production, has AI, connects with Siigo and has mobile app?" He says "Of course, everything is possible". He does not tell you he does not know AI, nor ever connected Siigo, but says yes to not lose sale.

3. The 70% Advance and Disappears

Scam: Asks 70% in advance to "reserve agenda". You pay $15M. First 2 weeks responds fast. Week 3 starts delaying. Week 4 does not answer.

How to avoid: Never more than 40 or 50% advance. Rest against visible deliverables.

4. The "I Deliver Code" But It Is Spaghetti Nobody Understands

Scam: Delivers code, yes. But code made in rush, without comments, without structure, only he understands. When you want another to maintain, says "must redo, $25M".

5. The No Process Discovery: "Send Me Excel With What You Need"

Scam: Does not sit in your plant. Does not talk with your plant manager, nor saleswoman. Sends you form via WhatsApp and quotes with that. Obviously what delivers does not work because never understood your real process.

6. The Ghost Support: "Yes, We Have 24/7 Support"

Scam: Sell you support and when system breaks Friday 5pm, send you to ticket that answer Monday. Your plant stopped whole weekend.

7. The "I Make You Full ERP for $10M"

Scam: Tells you for $10M makes everything SAP does. Obviously lie. For $10M makes you Excel with login.

The Checklist to Not Lose Money When Hiring (Save It)

Before signing, ask this to who will develop. If fails in 2 or more, do not hire:

1. Closed price per module or hourly no ceiling? Must be closed
2. How much advance? No more than half
3. How many days discovery in my plant includes? Minimum one full day
4. Can you show me similar project working with real client I can call?
5. What happens if you delay? Is there penalty or guarantee?
6. What does post-delivery support include and for how long?
7. Is my data mine and can I export whenever I want?
8. Perpetual license or monthly pay forever?

Were you already scammed or are you about to hire and do not want to risk twenty million?

At TotalSys Solutions I tell you straight if your project is viable, how much closed price and how long. If what we do does not serve you, I recommend who does serve you.

Book 20 minutes and we run your quote through anti-scam filter →