One of the stories owners tell most about agencies goes like this. The sales call had two impressive senior people. The contract was signed. Three months in, it turned out the code was being written by a different team entirely, often less experienced, sometimes at another company, in a country nobody had mentioned.
Subcontracting can be fine when it is disclosed. The trouble starts when it is hidden. Here is how to find out before you sign.
Key Takeaways
- Ask who will write the code, by name and role, and whether any of them work for another company.
- A healthy agency can describe the team's roles, seniority and location before you sign, names each person in the contract, and lets you talk to the lead developer before work starts.
- Put named people and an approval rule for team changes into the contract.
- Watch the signs after kickoff: new names in updates, slow answers to technical questions, quality that does not match the pitch.
Why It Happens
Some agencies sell more work than their own staff can deliver, and passing part of it to a cheaper partner keeps the deal profitable. Sometimes the partner is excellent. The problem is the gap between what you were sold and who is working, because you cannot judge risk you cannot see. If the person who answered your questions on the sales call never touches the code, their experience is not really part of your project.
Questions To Ask Before You Sign
1. "Who exactly will work on this, and what does each person do?" You want names and roles, not "a team of senior engineers."
2. "Are all of them employees or contractors of your company?" A clear yes, or a clear explanation of who is not.
3. "Can I talk to the lead developer before we start?" Not the salesperson. The person who will make technical decisions.
4. "Where are they located, and what hours overlap with mine?" You should know which country and time zone your team works in.
5. "What happens if someone leaves mid-project?" Look for a replacement plan with your approval.
6. "Can I see recent work by these specific people?" The agency's portfolio may have been built by someone else.
Vague answers to questions 1 and 2 are the main warning sign.
Contract Terms That Prevent It
| Term | What it does |
|---|---|
| Named team | Lists the people and roles on your project |
| No subcontracting without written approval | Any outside party needs your OK first |
| Team change notice | You are told, and approve, before someone is swapped |
| Confidentiality and IP flow-down | Anyone who touches the code is bound by the same ownership and confidentiality terms |
| Access in your accounts | Everyone works in your code repository, so you can see who commits code |
The last one is practical. If the code lives in a repository you own, every change shows the name of the person who made it. You do not have to read code to notice that the names are ones you have never heard.
Signs After Kickoff
- Progress updates mention people you were never introduced to.
- Technical questions take days to answer, because they are being passed along.
- The lead developer from the sales call is "busy" whenever you ask for them.
- Quality or English level in the work is very different from the pitch.
- Commit names in your repository do not match the team list.
If you see two or more, ask directly. A trustworthy agency will explain. An evasive one has answered your question anyway.
A Concrete Version
An owner is comparing two agencies for a $30,000 inventory app.
Agency A says "our senior team" and sends a portfolio. Asked who will do the work, they say the team will be "assigned at kickoff based on availability."
Agency B describes a project manager and two senior developers by role and experience, says all three are its own contractors working from Latin America on US Eastern hours, and agrees to name them in the contract. After signing, the lead developer's first call is 20 minutes of sharp questions about how stock is counted today.
B may not be cheaper. But the owner knows who is building the app, and can hold B to that in the contract. On our own software factory projects, you get a dedicated project manager and a project lead you can reach directly.
The Honest Counterpoint
Some subcontracting is sensible and open. An agency might bring in a specialist for a payment integration or a security review, and that can raise quality. The fix is disclosure and approval, not a blanket ban that stops the agency from using the right expert. And a named team does not guarantee good work. It just makes sure the people you judged are the people you get. You still need milestone reviews. See how to review a software milestone before you pay.
Frequently Asked Questions
Is offshore work a form of subcontracting?
Not necessarily. Many agencies employ or contract their own developers abroad. The question is whether you know, and whether they work for the company you are signing with.
Can I ask to see the repository during the project?
You should own it. Read accounts you should own before a developer builds your app.
What if I discover it mid-project?
Ask for a clear account of who is doing the work, then decide based on quality. If the work is good and the agency is honest now, it may be fine. If not, see how to switch software development companies mid-project.
What else should I check about an agency?
Our guide on how to vet a development agency covers references, contracts, and warning signs.
The Bottom Line
Ask for names, ask who employs them, talk to the lead developer, and write the team into the contract. If you want help shaping the project before you talk to any agency, the honest read gives you a plan in plain English that any builder has to quote against.
Roberto Espinoza is CEO of Ruzora, which builds custom software for business owners at a fixed price and places pre-vetted senior LATAM engineers with US teams. Get a free honest read on your idea.
