A software development company writes code.
That’s it. Article done. Have a good weekend.
Except you already knew that.
You didn't ask "what does a software development company do" because you wanted to know they write code.
You're here because you're actually trying to figure out if hiring one would solve a problem you're currently staring at, and whether you can afford it without awkward conversations with your CFO.
So let's talk about what software development companies actually do, which is quite different from what their websites claim they do.
Software Development Agencies Provide Developers
Most software development companies are really just glorified staffing agencies with better websites. They'll rent you some developers, those developers will write some code, and six months later you'll have a bill for £150,000 and a product that sort of works but not really how you imagined.
This isn't because developers are bad at their jobs. It's because "writing code" is maybe 30% of what actually needs to happen for software to solve your business problem.
The other 70%? That's where things get interesting.
What Great Software Development Companies Actually Deliver
1. Software Companies Translate Business Problems into Technical Solutions
You come in saying "I need an app."
We come back saying "Actually, you need a way to reduce manual data entry in your fulfillment process, and here are 3 ways to do that, only one of which involves building an app."
Good software development companies are translators.
You speak business. Developers speak Python and React. Someone needs to bridge that gap or you end up with technically impressive software that solves the wrong problem.
What this looks like in practice: You spend the first two weeks (sometimes longer) in discovery sessions. You explain what's broken. We ask annoying questions like "why do you do it that way?" and "what happens if a customer does X?" We map your workflows. We identify bottlenecks. We come back with a proposal that might look a little different from what you initially requested—and it solves your problem better.
2. Software Development Companies Develop the Thing
Yes, this is the part where code gets written.
But here's what separates the wheat from the chaff: how the code gets written matters more than you think.
Modern software development isn't twenty developers hunched over laptops writing everything from scratch. It's:
- Architects selecting the right frameworks
- Developers using AI-assisted coding tools to accelerate the boring bits
- QA engineers breaking things before your customers do
- DevOps people making sure it doesn't catch fire when 10,000 people use it at once.
A significant chunk of code today is AI-generated. The truth is only a portion of AI-suggested code actually gets accepted because most developers don't know how to use these tools effectively. They have Cursor or Claude open in a tab but they're still coding like it's 2019.
At Octogle, we have figured out ways to use AI-assisted development to help us build strong, stable, and secure MVPs in 8-12 weeks instead of 12-18 months. We’re delivering at costs that would've been impossible three years ago.
3. Software Development Companies Conduct QA Testing
Ask any software developer how they feel about writing tests for their products.
Testing is boring. Testing is tedious. Testing is also the difference between software that works and software that loses your customers' data.
Professional software development companies like ours have dedicated QA engineers who spend their days trying to break your software in creative ways.
They test on different browsers. They test on phones from 2018. They test what happens when someone types emoji into the login field.
They find the bugs before your users do.
4. Software Development Companies Deploy Working Products
Good development companies handle the deployment infrastructure—servers, databases, security certificates, backup systems, monitoring tools, etc.
They set up continuous integration so new features can be deployed without taking the site down. They configure auto-scaling so your site doesn't crash when you get featured on TechCrunch.
If this all sounds confusing, you shouldn't need to know what any of that means. That's their job. Essentially, software development companies ensure your product gets launched and works the way it should under load.
5. Software Development Companies Maintain Products After Launch
Here's what happens after launch:
- Bugs you didn't catch in testing reveal themselves.
- Users want features you didn't think of.
- Your business grows and the software needs to scale.
- Servers require maintenance.
- Security vulnerabilities need patching.
Software isn't a one-time purchase. It's a living thing that needs feeding.
Most development companies offer maintenance retainers for ongoing support. Some bail the moment the project ends. At Octogle, we treat the post-launch phase as the start of a partnership, not the end of a transaction.
The Real Reason Software Development Companies Exist
You could, theoretically, hire developers yourself.
You could learn to manage technical teams. You could figure out AWS deployment and CI/CD pipelines and database optimization.
But you shouldn’t have to because that's not your job.
Your job is running your business, understanding your market, serving your customers.
The reason software development companies exist is to let you stay focused on what you're good at while they handle the technical complexity you shouldn't have to think about.
The question isn't whether you need a software development company. If you're reading this, you probably do. The question is which type you need and how to find one that doesn't waste your money building the wrong thing.
3 Types of Software Development Companies and What They Do
Type 1: The Staff Augmentation Company
What they do: Rent you developers who integrate into your existing team.
When this works: You already have a tech team and CTO but need to scale quickly. You need 3 more senior developers but don't want to spend 6 months hiring them at £100k+ each.
When this doesn't work: You don't have a tech team. You're not technical. You don't know what you need.
The economics: You're paying £2,500-£4,500/month per developer versus £6,000-£12,500/month for equivalent UK-based contractors, or £80k-£150k+ annual salaries for full-time hires. The math is compelling if you have the infrastructure to manage remote developers.
Type 2: The Full-Service Product Development Company
What they do: Build your entire product from concept to launch. Branding, design, development, testing, deployment—the whole thing.
When this works: You're a non-technical founder with a validated idea. You've been quoted £300k+ by traditional agencies and nearly fainted. You need to move fast and get to market before your competitors do.
When this doesn't work: Your requirements are vague. You haven't validated the market. You want to "build Facebook but for dogs." At Octogle, we help you build the MVPs you need to test your idea and go from there.
The economics: Figure £25k-£80k for an MVP at companies like Octogle versus £100k-£500k at traditional UK agencies. The difference is AI-optimized development workflows and offshore experienced talent with robust infrastructure, not just cheap outsourcing.
Type 3: The AI Automation Specialist
What they do: Identify manual processes in your business and automate them with AI. Customer support chatbots, automated reporting, document processing, lead qualification—anything a human is doing repetitively that a trained AI could handle.
When this works: You're spending 10+ hours a week on admin that makes you want to scream. Your team is drowning in repetitive tasks. You know AI could help but don't know where to start.
When this doesn't work: Your processes are chaotic and undocumented. (AI can't automate chaos. Well, it can, but you won't like the results.)
The economics: £5k-£50k for implementation depending on complexity. The ROI usually shows up within three months when you realize your support team is handling 3x the volume with the same headcount.
So What Do Software Development Companies Do?
A good software development company does 6 things:
- Translates your business problems into technical solutions
- Builds the software using modern development practices (including AI-assisted coding)
- Designs user experiences that don't make people angry
- Tests everything out of it before anyone sees it
- Deploys it properly with infrastructure that scales
- Sticks around for maintenance and iteration
A bad software development company takes your money and gives you code that technically works but doesn't solve your problem.
The difference between good and bad comes down to 3 things:
- How they onboard and train their developers
- How they structure client communication
- Whether they view software development as a transaction or a partnership.
The companies crushing it today are the ones who've figured out AI-assisted development, who've invested in training their teams on modern tools and workflows, and who've structured their businesses to deliver outcomes instead of billing hours.
You're not looking for someone to write code.
You're looking for someone to solve your problem with software.
If you'd like to learn more about our approach, connect with us today.
