We have seen due to throat cut competition lot of business managers try to lower the cost drastically to grab the project. By grabbing the project at such a less price, they bring real problem for the developers and project Managers and ultimately the company develops the software at loss or might be come out of the project by giving a very bad experience to the client.
We have find that this lowest bid process is killing lot of companies and thousands of customers had didn’t seen their complete product ready. It’s a loss of trust and money from both sides. Then what should companies do? Companies should at least try for the cost which they can afford to develop the software. If they find the cost is less they should come out and look for new prospects.
Other way is to educate the clients about the software development process and how to identify a software development company and how to find which is suitable. Along with your proposal try to give few testimonials with their email ids and phone numbers of your previous clients but you should take their permission before giving their details. All these things will help a good company to differentiate themselves from the market.