What is a software development consultancy

Dale WesdorpCo-founder, Miyagami Hiring3 min read

A software development consultancy is a company that advises clients on how to build software and often helps build it. It sells senior expertise and judgement for a defined problem, such as an architecture review, a migration plan or a first product build. The work usually runs as a project or a monthly retainer, and the consultancy is accountable for the quality of its advice.

What does a software consultancy do

A consultancy takes on questions where the answer shapes the next year of engineering work. Typical examples are choosing an architecture, assessing a legacy codebase, planning a cloud migration, setting up delivery practices or reviewing the plan for an AI feature. Many consultancies also write the code, so the advice and the build stay connected.

The deliverable is often a mix of documents and working software. You should expect a clear written recommendation, the reasoning behind it and a plan your own team can follow.

How does it differ from a software agency

The two overlap, and the difference is mostly in what you buy. An agency sells delivery of a defined scope, often with design, project management and development under one roof. A consultancy sells expertise applied to a problem, and the scope can change as the findings come in.

Consultancy Agency
Main product Advice and senior judgement Delivered software
Scope Flexible, shaped by findings Defined up front
Typical team Few senior people Mixed roles and levels
Pricing Day rates, phases, retainers Fixed price or time and materials

When should you hire one

A consultancy pays off when the decision is expensive to get wrong and your team lacks direct experience. A first-time CTO choosing a stack, a company planning a migration of a core system and a team adding an AI feature to a mature product are all reasonable cases.

It pays off less when the plan is already clear. In that case the missing ingredient is engineering capacity, and a consultancy day rate is a costly way to buy it.

How do consultancies charge

Most use one of three models. Day rates fit short advisory work, fixed-price phases fit a defined assessment or design, and monthly retainers fit ongoing guidance. Ask for the seniority of the people who will do the work, since a senior name in the pitch and junior staff in delivery is a common pattern.

Compare quotes by what you receive at the end. A written plan, a working prototype and a trained team are different outcomes at different prices.

What should you ask before signing

Ask who will do the work and how senior they are, what the written deliverable looks like and how scope changes are handled. Ask for a reference from a client with a similar problem and what happened after the engagement ended.

Check what you keep at the end. Code, documentation and the reasoning behind decisions should belong to you, and your own team should be able to continue without calling the consultancy.

How do you judge the quality of advice

Good advice names trade-offs and says what it would cost to be wrong. Be careful with recommendations that always end in a large new build or a long retainer. Ask the consultant what they would do with half the budget, and see whether the answer is specific.

What does this mean when you hire engineers

Many teams use a consultancy for the plan and then need people to carry it out. Hiring senior engineers who join your team full-time is the natural next step. Every Miyagami engineer is tested by an AI-native tech lead who works with AI every day, and you can read how that works on how we vet. Engineers start from €5,600 a month with a three-month minimum, and we replace at our cost if the fit is wrong.

If you are weighing the options, the articles on software agencies, staff augmentation and the dedicated team model explain the alternatives. See pricing for what a full-time engineer costs.

Short answers

What does a software development consultancy do?

It advises on architecture, technology choices and delivery, and in many cases builds or leads the build.

How is a consultancy different from a software agency?

A consultancy sells advice and senior judgement for a problem. An agency usually sells delivery of a defined scope.

How do consultancies charge?

Most use day rates, fixed-price phases or monthly retainers. Ask what is included before you compare quotes.

When is a consultancy the wrong choice?

When you already know what to build and need engineers in your team every day. Embedded engineers fit that case better.

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