Top Software Development Companies in Houston in 2024

As home to NASA's Johnson Space Center, Houston is known as an engineering powerhouse. The city's reputation in technology lies in industries such as energy, aerospace, and healthcare. However, it is growing in fields like programming and software development.

Over recent years, Houston has become one of the leading regions in tech talent, joining the ranks of San Francisco. The city is experiencing a surge in startup accelerators and incubators to help early-stage founders. As of today, there are over 9,000 tech-related firms in this region.

Software development is crucial in the digital landscape as it drives invention and simplifies operations. It fuels innovation and enables businesses and corporations to adopt new technologies for growth. This article discusses how top software development companies in Houston are driving innovation.

Major Software Development Hubs in Houston

Houston is positioned to become the leading city in the nation for tech innovation. Boasting a robust tech ecosystem and fertile environment for entrepreneurs, it is an ideal region for tech hubs. Below are major tech hubs with top software development companies in Houston. 

1. The Ion District

Situated at the heart of Midtown Houston, this is home to Houston's innovation and entrepreneurial communities. The district's central building is The Ion, which was established in 2021 and has been a major tech hub in the Ion District. A significant instrument in Houston's rising tech ecosystem, The Ion offers 266,000 square feet for recognized tech companies and startups and a space for tech events and programming. Companies like Microsoft and Chevron Technology Ventures have leased spaces in The Ion.

2. Downtown

As the city's business hub, Downtown hosts the most prominent companies in Houston. Noteworthy tech companies with office spaces in this region include Liongard, HTX Labs, and Topl. These enterprises are trying hard to disrupt the oil and gas industry, a sector that defines the reputation of Texas. For instance, Topl is a technology company providing Blockchain solutions to companies.

3. Downtown Launchpad

Located in southern Downtown, Downtown Launchpad is a 17,000-square-foot hub conceived to be a vertical village and center for startup growth. It offers a creative space for entrepreneurs and startups to go through the production process seamlessly. Launchpad is an innovative place for startup boot camps, innovation labs, workforce development, and many more. 

Market Overview  

Software development keeps evolving over the years, thanks to a wide range of changes in the software development lifecycle (SDLC). Factors such as business demands, market trends, and the ever-evolving technological landscape contribute to these changes. Below are some of the current trends the top software development companies in Houston adopt:

1. Internet of Things (IoT)

There is a widespread adoption of the Internet of Things, with smart devices connected to the Internet and powering different businesses across the globe. Software engineers are adding processors and sensors to billions of everyday devices, such as vacuum cleaners, toothbrushes, and health gadgets. These devices can collect data over cellular networks, Wi-Fi, or Bluetooth and respond logically to the user. 

2. Artificial Intelligence (AI)

Today, top software development companies in Houston and beyond employ AI to create predictive analytics and improve business decision-making processes. Every industry benefits from AI integration, from healthcare and banking to retail and manufacturing. For example, integrating AI in banking helps detect fraudulent activities and automate data management tasks.

3. Evolution of Cloud Native Applications 

Cloud-native application development is becoming a standard practice in the industry. In this software approach, developers build applications that run in cloud computing environments. Organizations want to build scalable and high-available applications that meet customers' demands. They can achieve efficiency and availability using tools supporting cloud infrastructure development. 

4. Multi-Cloud Architectures

Although most businesses use one cloud provider, some companies adopt multi-cloud architecture to avoid being locked into a single cloud platform. Companies that adopt the multi-cloud architecture design increase reliability and redundancy. For instance, if one platform goes down, some application functionalities deployed on other cloud platforms will be available to users. 

5. 5G Technology 

Compared to the popular 4G networks, this technology offers network efficiency up to a hundred times faster. 5G is more than a mobile network and will transform how we access applications and the internet. With its high speed and reduced latency, 5G could support how users access emerging technologies like artificial intelligence, virtual reality, and the Internet of Things (IoT).

6. Blockchain

Blockchain technology has disrupted how businesses and organizations carry out operations. This technology became popular in the finance industry for secure and speedy transactions. Other sectors such as healthcare, logistics, and manufacturing integrate blockchain to improve secure online transactions. 

7. No Code Software Development

Developing applications can be lengthy, but with a no-code or low-code approach, bringing an idea to fruition is easier. Low code and no code development platforms also reduce the barrier to entry for software development. This trend enables people with zero technical skills to build customized applications from scratch by leveraging a low-code platform. 

8. Growth of Microservices Architecture

Microservices architecture aims to break up a monolithic application into small, independent services. This approach to developing software ensures developers can build and scale a feature without affecting the functionality of other services. In the monolithic software deployment approach, when a single service fails, it affects the entire application. 

9. DevSecOps

DevSecOps is a practice where software engineers and operations teams introduce security testing to every layer of the software development lifecycle. This approach makes finding and fixing vulnerabilities easier before pushing the product to production. Houston's best software development companies employ DevSecOps to release more secure and reliable software to their users. 

10. Edge Computing 

Edge computing is an approach that reduces latency between client and server by moving computing closer to the source. Instead of transmitting data from the source to a data center for processing, the work is carried out where the raw data is generated. When businesses utilize edge computing, they get more timely insights and improve the response time of their devices.

11. QA Automation 

Also called Automation Testing, QA Automation refers to the use of specialized tools to run tests on the software developers are building. QA automation testers write scripts that can be used to perform repetitive testing tasks. With automation testing, businesses can release their products to the market with fewer bugs and fewer technical issues that can result in downtime. 

Houston's tech sector is rising rapidly, with startups and established companies setting up branches in the region. Startup Blink placed the city in the 52nd position on its recent global startup ecosystem report. 

Tech talent in Houston is more prominent in the healthcare and energy industries. CompTIA State of the Tech Workforce report places Houston as one of the cities with the most tech job postings in the U.S.

According to the Houston Facts report, the city included over 80 startup organizations, which have contributed to the growth of tech entrepreneurs. Houston has remarkable accelerators and incubators, including Greentown Labs, JLABS, and the Ion Smart Cities Accelerator. 

Meanwhile, The Princeton Review consistently ranks the University of Houston and Rice University entrepreneurship programs as the nation's best. These programs support student-run technology companies through their alliance with organizations. The Rice Business Plan Competition, entering its 24th year, is the richest student startup competition in the world, giving out over $1 million in cash and prizes. 

Technical Expertise of Houston-based Developers

Software developers use many technologies, tools, and methods in building software applications. Below are popular technologies top software development companies in Houston utilize:

Progressive Web Applications (PWAs)

PWAs refer to the applications software developers build using web technologies but offer the user experience of a traditional mobile application. They are highly responsive and easier to build. PWAs can run in the background while the user is offline. 

Virtual Reality (VR)

Virtual reality is a software technology that allows users to immerse themselves in computer-generated 3D environments. Several industries, such as entertainment and fitness, are tapping into this technology to improve engagement with their target audience. 

Quantum Computing

Top software development companies use quantum computing to monitor, study, and analyze data. It is an emerging technology that uses quantum mechanics, such as entanglement and superposition, to solve complex problems faster than conventional computers. Quantum computing offers potential in many industries, including advanced DNA research in healthcare and improved fraud detection in finance.

Robotic Process Automation (RPA)

RPA is a technology that utilizes artificial intelligent agents and robots to automate digital tasks. Just like humans, robots can carry out mundane tasks like moving files and updating spreadsheets. Top software development companies in Houston and other regions employ robotic process automation to save costs and improve efficiency. 

Big Data

Big data technologies refer to tools and techniques for mining, storing, and investigating complex data sets. These tools help companies and organizations gain insight from these large data sets to make better business decisions.

Cloud Computing 

This technology provides users access to on-demand computing resources. With cloud computing, businesses can store and retrieve data, build infrastructures, and deploy applications over the internet on remote servers. The popular cloud computing platforms are AWS, Google Cloud, and Azure. 

Frameworks and Libraries

Frameworks and libraries offer pre-written codes to implement particular functions, reduce the length of code, and improve efficiency. These help software developers build applications faster. 

Some of the popular frameworks top software developers in Houston adopt are as follows:

Laravel

Laravel is a PHP framework for creating simple and complex web applications. It started to gain popularity after the introduction of new features like the Artisan command line interface (CLI). Laravel's in-class testing tools allow developers to ship robust apps quickly.

React 

React is a JavaScript library programmers employ for building beautiful and modern user interfaces. Developers can build web apps and native apps using this library. When building for Android, IOS, and mobile applications, developers use React Native. 

Django

Django is a backend web framework based on Python programming language. It comes with incredible features such as database handling and built-in protection against security attacks. Django makes it easy for developers to build secure websites. This framework is free and open-source.

Spring

Spring is a lightweight web application framework that streamlines server-side development tasks. It is one of the popular frameworks for Java applications. Developers utilize Spring for many tasks, such as building scalable microservices. 

Vue

VueJS is an open-source JavaScript library for creating web user interfaces. It also functions as a progressive framework for building single-page applications. This library provides developers with most of the features needed when adding functionalities to an application. 

Angular 

Angular is a typescript-based framework for building dynamic, single-page web applications. Google developed this open-source framework for front-end engineering. Angular is platform-agnostic and allows developers to build web, mobile, and desktop apps. 

Ruby on Rails (RoR)

RoR is a full-stack web framework that provides developers the tools they need to build apps on the front and back end. This framework has built-in testing that makes it easy to execute automated tests. Moreover, it is among the top 10 frameworks in the United States. 

Node

NodeJS is an open-source framework for building the server side of an application. It's a JavaScript runtime environment used by backend software developers. NodeJS can run on Windows, MacOS, and Linux, among others. 

Case studies showcasing successful software projects

The best software development companies in Houston employ top and experienced developers to work on innovative projects. Alert Logic, founded in 2002 in Houston, is a cybersecurity company that delivers cloud security solutions to businesses. The company employs advanced software technologies like artificial intelligence to provide 24/7 thread detection.

Another top successful company in Houston is Entelligence, known for providing IT consulting services to organizations in different industries. Since its inception, Entelligence has delivered over 30,000 professional services to enterprises across 161 countries. The company's global IT consultants help clients implement cloud security architectures, improve operational efficiency, and provide support and training. 

With over two million users, SmartVault is helping business professionals manage, store, and secure their documents in the cloud. This platform allows users to integrate with tools like Microsoft, Salesforce, and TaxCalc. 

Education and Talent Pool

Houston is prominent for being a center for pillar industries like energy, healthcare, and technology. All these niches require high levels of education. Colleges and universities in Boston include the following: 

• Rice University
• University of Houston-Clear Lake
• Texas Southern University
• Houston Community College System
• Houston Christian University
• Sam Houston State University
• University of Houston-Victoria
• Lamar University
• Prairie View A&M University
• University of Houston-Downtown
• American InterContinental University

Some of the best boot camps offering software development courses in Houston include:

• DigitalCrafts Web Development program 
• Noble Desktop Software Engineering Certificate 
• Rice University Bootcamp
• Byte Academy Bootcamp for Python and Data Science 
• Flatiron School Online Software Engineering Program 

Availability of Skilled Software Developers

Top software development companies in Houston benefit from a generous talent pool. Houston ranks as one of the growing tech hubs with thriving tech talents. Many factors, such as the presence of notable incubators and accelerators, contribute to its rising workforce.

An analysis by Greater Houston Partnership reveals that the city boasts over 230,800 tech workforce. A reason for the availability of skilled software developers in Houston is the number of tech firms and startups. More than 9,100 tech companies are in the city, including over 1,000 startups backed by venture capital.

Established tech companies' presence also influences skilled software engineers' availability. Top tech companies in Houston include HP Enterprise, AvidXchange, Oceaneering, and Enuit.

Moreover, a testament to the city's skilled workforce is the number of available jobs. CompTIA State of the Tech Workforce showed that the Houston metro added over 5,090 new tech jobs in 2022 and 3,300 in 2023, bringing the net employment figure to 153,514. That placed the city among the top ten metros by tech employment.

 

Salaries and Compensation

According to Glassdoor, the estimated pay for a software developer in Houston is $104,678 per year. Another statistic gathered by Built In from anonymous developers based in the city reveals the average salary is $105,077. The average additional compensation is $3,700, bringing the average total compensation to $108,777.

Top software development companies in Houston pay their engineers based on different factors. The software developer's experience level, company, and certifications influence how much a developer earns. If an entry-level developer earns $86,000 per year, the salary can be $100,000 or higher for another one with more experience.

Texas is among the states with the highest-paid software developers in the United States. The average salary for a software engineer is $118,000 per year in Texas. Comparatively, the average salary in Virginia is $100,802, $112,666 in Florida, and $105,419 in Arizona.

Cost of Living in Houston

Houston is the most populous city in Texas, with over two million residents. It has a low cost of living while offering residents a top-quality experience with world-class amenities. The city is ranked fourth with lower living costs compared to other populous U.S. metros.  

Houston has one of the lowest housing costs. Its housing cost is 18.4 percent lower than the national average.

The cost of living in Houston is a steal compared to other metro cities. A lower cost of living impacts salaries and the cost of building projects.

Companies that want to build an in-house team or rent an office space do not have to go overboard to do so. The city's low cost of living is apparent in the relatively average salaries compared to other regions in the United States.

Why Choose Houston for Software Development?

The top software development companies in Houston chose the city for different reasons. Houston is economically thriving, with technology reshaping its position globally more rapidly than before.

With reports showing $2.02 billion in VC funding and over 80 accelerators, this city is positioned to become a leader in the tech industry. Academic institutions, in addition to startup development organizations, all assist in pushing the city forward in the tech landscape by supporting entrepreneurs.

Thanks to the growing business sectors, the Houston area has employment opportunities for residents at various skill levels. This region ranks among the top 10 areas in the United States for attracting young talents.

Final thoughts on why Houston is a prime location for software development in 2024

While the economy of Houston is known to be in the energy, space, and medical sectors, it is also growing in other areas like software development. The reason why the region is seeing an overall increase in tech and software development is the presence of startup accelerators and incubators.

A strong education system also produces young talents in the tech ecosystem. Rice University and the University of Houston are top in the nation for providing entrepreneurship programs to graduate and undergraduate students.

The top software development companies in Houston are enjoying the favorable business environment. In Houston and Texas, business costs are friendly and transparent. No corporate, personal, or state income tax exists, making it a prime location for companies looking to establish. 

References

• https://www.houston.org/why-houston/industries/digital-technology-innovation#
• https://iondistrict.com/
• https://aws.amazon.com/what-is/iot/#:~:text
• https://www.houston.org/sites/default/files/2023-08/Houston%20Facts%202023%20Publication_Final_digital_0.pdf
• https://rbpc.rice.edu/
• https://trends.builtwith.com/framework/country/United-States
• https://www.cyberstates.org/pdf/CompTIA_State_of_the_tech_workforce_2023.pdf
• https://www.glassdoor.com/Salaries/houston-software-developer-salary-SRCH_IL.0,7_IM394_KO8,26.htm
• https://builtin.com/salaries/dev-engineer/software-engineer/houston-tx
• https://www.houston.org/houston-data/cost-living-comparison
• https://www.texasrealestatesource.com/blog/houston-cost-of-living-guide/
• https://www.houston.org/why-houston/industries/digital-technology-innovation#
• https://www.houston.org/why-houston/talent