It is often confusing to clients out there who constantly sort after by individuals, companies, and organizations that offer solutions to their businesses. Since some of the individuals (freelancers) approach business owners as a digital agency or a software house, it is in our best interest to try and shed some light on this topic. Let’s, therefore, discuss what a software house is!

What is a software house (digital agency)

A software house is typically a company or agency that specializes in offering software products to its clients. These software products can span a wide range of areas from business software to consumer software to software-as-a-service (SaaS) products. A digital agency, therefore, has to take the form of a company, that is, with employees working together to achieve a certain goal-which in this case, must be creating and distributing software products.

Although a software house has to develop and distribute software products, there is always room for tweaks due to differences in the client base. Some houses take interest in contractor jobs commissioned for specific clients while others develop generic software targeting the public. The first type of companies is focusing on the creation of bespoke software, directly for client needs. The second type is focusing on public out-of-the-box software products that end up as a final solution to some problem.

And off course there are companies, that combine this 2 approaches.

Difference between software house and freelancer

Even though both a software house and a freelancer offer the same service to their clients, they still have some fundamental differences that easily sets them apart such as:

No of employees.

A freelancer is a professional who seeks to offer their services to their clients in exchange for payment. This means that they are self-employed (One-man army). However, for a digital agency, many employees work together to develop different software solutions for their clients.


Scalability is a major factor in the software development industry. Arguably, freelancers handle relatively smaller projects with limited options for upscaling.  However, contracts awarded to a software house are normally robust and complex. This is because they have the man-power to handle the complex and advanced projects promptly.


Although this is an abstract difference, it is safe to mention that most freelancers charge relatively less fee to get the job done in comparison to a digital agency. It is, however, a hugely debated topic since freelancers charge a wide range of prices for their services due to differences in experience, making it difficult to assume a certain standard price for all freelancers compared to the pricing of a software house.

How to choose a good software house / digital agency

Finding a good and reputable house to contract is often challenging for many clients. Since the era of digital marketing, there has been a serious increase in the number of web agencies offering similar services to clients. This can be attributed to the fact that most of these services can be offered by anyone who has the appropriate knowledge. In this regard, both budding freelancers and established business people have set up “software houses” by just designing amazing websites to advertise their services. This has made it very difficult for clients to choose which house is best for them. However, there is always a way to know how good a person or agency is.

•  Always ask for the portfolio

This is a fundamental rule that should be applied by all clients. A portfolio is the only way you can check on previous works of a software house before you contract them. Asking for similar or projects recently done that relates to your project could help you gauge their level of expertise. It also helps picture the end product to avoid disappointments.

•  Check for reviews

Currently, all companies, businesses and freelancers need to maintain reputable social media accounts. A key reason for this is to enable companies and businesses to connect directly with their customers to offer better services. For this reason, potential clients should head over to social media handles and check previous customer reviews for these software houses to be sure of their credibility

•    Avoid the cheapest deals

Sometimes the budget can be a constraint when choosing which software house to pick for your project. The truth is, cheap is always expensive. Although some good agencies are trying to break into the market using cheap pricing, most underpriced packages are limited in one way or another. Quality is always compromised to sustain the business. To avoid this scenario, it is advisable to stay away from the cheapest deals in the market.

Where to find good software house / digital agency

There are several places to look for when you are in search of good digital agencies. If you live in an urban area, a local tour of the software houses could give you a clear picture of who is the real deal. However, that’s old school. Most people rely on the internet to get stuff done and so should you. Here are some tips to help you find a good software house online

•    Check for houses with a good informative website (updated regularly)

•    YouTube accounts with good reviews and professional videos

•    Good reviews on social media (especially Facebook, Twitter and Instagram)

• Good reviews on IT companies aggregators e.g.:

With this quick background checks on the internet, you can be sure that whichever software house you will opt for, you will get amazing solutions for your business.