How to Choose the Right Software House in Indonesia: 7 Must-Ask Questions Before Signing the Contract

Why Software Projects Often Fail in Indonesia

Industry data is consistent: more than 60% of software development projects in Indonesia face significant delays, and around 20% end without a usable product. These are not small numbers.

The root causes are rarely technological—they are almost always about communication, expectation management, and choosing the wrong vendor from the start.

This article is a guide from a vendor's perspective: what you should ask us (and any software house) before you decide to partner up.

7 Must-Ask Questions Before Contracting

1. "Can I see a portfolio of projects similar to mine?"

This is the most fundamental question—and the one most often skipped. A software house that is great at building an e-commerce marketplace isn't necessarily the right fit for a manufacturing ERP system. Domain expertise matters.

What to look for: projects with equivalent complexity, in a relevant industry, with client references you can contact directly.

Red flag: The portfolio only contains screenshots without technical details, or they refuse to provide client references.

2. "Who will actually work on my project — in-house or outsourced?"

Many "software houses" are actually brokers—they accept projects and then toss them to freelancers or teams overseas. This isn't always bad, but you need to know and agree to it upfront.

A cohesive in-house team usually produces a more consistent product that is easier to maintain long-term. Communication is also much smoother.

Follow-up question: How many people will be involved? What are their specific roles? Is there a dedicated project manager?

3. "How do you handle communication and reporting during the project?"

Software projects can span 3–12 months. During that time, you need to know the progress without constantly chasing the vendor.

A good standard: weekly updates via email or a project management tool (Jira, Linear, Notion), a demo every 2 weeks, and a responsive communication channel (WhatsApp or Slack with a clear response SLA).

Red flag: Vague answers like "we'll update you if there are any developments."

4. "How are scope changes handled?"

Business needs change. It is inevitable during the project lifecycle. The question is: is the process transparent and fair?

A good vendor has a clear change request process: changes are documented, the impact on timeline and cost is communicated first, and the client approves before work begins.

Red flag: "We'll figure it out later" or no written process for scope changes.

5. "What happens after the project is finished?"

Launch is not the end of the software lifecycle—it's just the beginning. Bugs will appear. Users will have feedback. Needs will evolve.

Ask about:

• Bug warranty period (minimum 30–90 days at no extra cost)
• Maintenance contract options
• Response time for critical bugs (ideally with a written SLA)
• Is there a handover session for your internal team?

6. "Do I get full access to all project assets?"

This is non-negotiable: You must get full ownership of the source code, access to all accounts (cloud hosting, domain, third-party services), and technical documentation.

Some vendors intentionally create lock-in by keeping this access in their name. When the relationship ends, you cannot switch vendors without rebuilding from scratch.

Get it written in the contract: "All source code and digital assets are the full property of the client."

7. "How is the cost and timeline estimation broken down?"

A good estimation isn't a round number conjured up in 10 minutes. A serious vendor will take time to understand your scope deeply before providing a reliable estimate.

Ask for a breakdown per feature or per phase—this allows you to prioritize features based on budget and value, rather than accepting or rejecting the entire proposal.

Signs of a Trustworthy Software House

• Asks many questions before giving an estimate (they want to understand, not just sell)
• Transparent about project limitations and risks
• Has experience in the relevant industry or domain
• Has a structured development process (Agile/Scrum or equivalent)
• Provides contactable client references
• Clear contract with deliverables, milestones, and payment schedule

Suggested Evaluation Process

Don't evaluate just one vendor. Compare at least 2–3 proposals with the exact same scope. Look not just at the price, but at the depth of the vendor's understanding of your business needs—this is usually more predictive of project success than the portfolio or price itself.

Free Consultation with the Colabs Team

The Colabs team is open to discussing your project needs—without sales pressure. We will ask many questions, provide realistic estimates, and be honest if your needs are outside our expertise. That is the standard we hold for every collaboration.