Top Software Development Companies in London

Last updated: July 2024

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List of the Best Software Development Companies in London


Buyer's guide

The phenomenal advancements in software technology have made it an integral part of businesses worldwide, and the UK is not an exception. A surge in cloud-based software demand due to its impact on remote management of business operations and customized software for engineering and architectural firms are a few examples of the sector's growth in the country. 

The revenue of software developers is forecast to increase at a compound annual rate of 4.2% to £44.1 billion over five years through 2023-2024. London is ranked as the second most significant startup hub in the world, according to the Global Startup Ecosystem Report 2022, after Silicon Valley. The UK government is promoting the development of the East London Tech City, aiming at making it the Silicon Valley of the country. London remains the number one location for FDI projects, while the UK holds the second position in the European countries. 

Software development has made giant strides in the past decade. From smartphone apps that enable excellent shopping experiences to the use of blockchain technology, the Internet of Things, and microservices, the industry is making a big impact in all fields. In the UK, one million people were employed in IT, software, and computer services in 2022, which was higher than the 940 thousand people employed in 2021. 

With the present digital trend aiming at providing seamless cross-channel experiences and innovative solutions, businesses need to embrace the latest software development trends to ensure success. An outstanding customer experience and spectacular profits are possible with the right software development solutions. Here is more on the top software development companies in London in 2024.

Major Software Development Hubs in London 

While the UK has a diverse and innovative startup ecosystem, London stands apart as it has the highest number of active companies. As per a study by London & Partners and, London has had 241 impact startups since 2006. Octopus Energy, Gousto, and Babylon Health are a few of the impact unicorns. 

The various tech hubs in London are a big reason for the city ranking high in the tech sector. They have numerous amenities, networking opportunities, tech incubators, and learning events. Here are some of the popular tech hubs in the capital city.

East London Tech City

Nicknamed Silicon Roundabout and Tech City, this tech hub shows rapid growth and encompasses Hoxton, Shoreditch, and Old Street. It boasts more than 2,000 tech startups and 50,000 employees. 

Some of the big brands investing in the region include Facebook, Cisco, Intel, Google, Microsoft, and McKinsey & Company. The presence of tech universities like the University of London, London Metropolitan University, Queen Mary University, and Imperial College London also makes it a popular tech destination.


Shoreditch is considered a Silicon Roundabout extension. It is popular as a startup hub and has many creative brands and tech companies, including Amazon, Google, AMEE, and Intel. It has 12,500 small and medium enterprises and over 1,500 global firms, as per London and Partners. 

Additionally, the area has strong local and national government support. Its key stakeholders include the London Metropolitan University, City University London, and the Imperial College London. 


Fitzrovia has become a popular tech hub due to its outstanding transport links and proximity to the West End. The reasonable real estate price, despite its location in a prime suburb, makes it a popular choice for software development companies. 

The Victorian and Georgian architecture here is a big draw. Notable companies having offices here include Facebook and Netflix. Many software companies are based here, and the University College London, present nearby, is a major research center that attracts medical tech companies.

Stratford (Olympic Park)

Hosting the 2012 London Olympic and Paralympic games, the Queen Elizabeth Olympic Park is a popular destination now. It attracts many commerce and tech companies. Here East is an office building in the center of this park that houses a wide range of established and growing tech firms. 

The Westfield Stratford City shopping and leisure area here houses 65 restaurants and 250 shops. Loughborough University London, Teesside University London, University College London, and Staffordshire University London are educational institutions nearby.

This eastern suburban region is expected to provide about 40,000 jobs by 2025 with an economic value of over £5 billion. Construction, fashion, and digital technology companies are vibrant here.

Market Overview

Current trends in software development in London and the UK as a whole include the dominance of emerging technologies like machine learning and Artificial Intelligence. Blockchain technology and cloud computing are other areas that are seeing rapid growth.  

The Government is heavily investing in these software segments via initiatives like the Digital Skills Innovation Fund and the AI Sector Deal. The industry is expected to reach a value of USD 33.09 billion in 2023, with Enterprise software dominating the market and forecast to reach a volume of USD 13.66 billion.

London remains one of the few cities that have the required facilities to become a global tech hub. The value of London startups reached a record-breaking value of $88 billion in 2021, while the UK tech field was valued at $1 trillion in March 2022. The city hosts many venture capital firms like Sequoia and Expa. 

Top software development companies in London have many advantages. The city benefits from the tech incentives offered by the UK government and via the accelerators present here. Innovation funding is one such incentive that is provided for top software development companies in London as well as other companies based in the UK. The funding covers research, testing, and collaboration. In the year 2020 to 2021, the Innovate UK gave grants valued at $3.9 billion. London is considered an ideal hub for fast-growing industries like Fintech, ed-tech, and cleantech. 

By having over 40 of the world’s top universities, London gives access to global research and talent that cannot be found elsewhere. As per a global survey by Boston Consulting Group, London is the first choice for tech workers. The multiculturalism, languages, cultures, and diverse markets in London form an ideal combo for businesses that want to achieve global growth.

Technical Expertise of London-based Developers

London-based developers have diversified software skills, problem-solving methods, and data analysis knowledge. 

Data processing and analysis in real-world business conditions, programming skills related to Java, SQL, and Python, and knowledge of operating systems like Windows and Linux are other skills honed by London-based developers. 

They are well-versed in using tools like 

  • Eclipse
  • IntelliJ
  • Android Studio
  • Web development tools like JavaScript and HTML
  • Jakarta EE technology (Java-based tech) for scalable enterprise application

Popular technologies and frameworks used

Software development comprises technologies, frameworks, programming languages, and tools used, which are collectively called a Technology stack. Here are some of the common technologies, frameworks, operating systems, and programming languages that London-based developers use:


JavaScript is the main language used for web development. This cross-platform programming language is ideal for creating interactive web pages. Animations, clickable buttons, pop-up menus, and more are possible with this technology. 


As an open-source, frontend technology for mobile and web apps, the Angular framework is TypeScript-based. Created by Google in 2010, this technology enables the creation of dynamic single-page client apps via HTML and TypeScript.


React is a frontend JavaScript library that helps form interactive user interfaces. Developed by Facebook, it is supported by a huge community of ardent developers.


Vue.js is a frontend framework that helps create single-page applications. Developed by Evan You and his team, this framework is useful for mobile app and desktop app development.


This is a cross-platform, open-source framework from Microsoft. It can run on full .NET framework, .NET Core, and Windows. It helps to build web apps and services, Internet of Things apps, and mobile backends.


Node.js is a backend technology that is open-source and cross-platform. It is useful in the non-blocking of event-driven servers for conventional websites and backend API services.


Django is used for backend and frontend web development. It works on all website categories like chat applications, social networking, and more. YouTube, Pinterest, Instagram, and Spotify are some of the popular websites developed by Django.

Case studies showcasing successful software projects

Many businesses have benefited from the services and expertise of top software development companies in London. Octopus Energy, a company based in London, uses the tech talent in the region to create a big green dent in the universe, as per its founder and CEO, Greg Jackson. 

Another example is Allbirds, a sustainable shoe retailer that opened its first European store in London in 2018 and has since expanded to 13 European cities. The company attributes its success to tech talent in the region and a good business environment. 

Education and Talent Pool

As per a Statista report, London will have the highest amount of jobs (216.5k) in the digital sector by 2025 out of the 678,100 jobs in the UK

The big talent pool and education scene here are key reasons. Many universities and boot camps offer software development courses in London, which is a key reason behind the strong tech talent here. The universities in London offering courses in computer science and web development are given below:

  • Imperial College London
  • Royal Holloway, University of London
  • Queen Mary, University of London
  • University Of West London
  • Goldsmiths, University of London
  • Roehampton University
  • Brunel University

Some of the boot camps that offer software development courses include the Software Engineering Certificate from Noble Desktop, Full-Time Web Development from Digital Crafts, and online coding bootcamp from Fullstack Academy. General Assembly also offers courses in web development, data science, Python programming, and more.

Availability of skilled software developers

Many top software development companies in London choose the city as it is the tech hub of the UK and has a huge tech talent number of more than 230,000 workers. As per Statista, the IT services industry is forecast to reach USD 86 billion in 2023. London is home to nearly 24,783 tech corporations, making it the preferred destination for web development and other IT services. 

When compared to 2021, a 21% increase in the new tech companies setting up offices in London was seen in 2022, as per an RSM UK analysis. The support from universities and schools to create skills in STEM subjects and leveraging new technologies have made the tech sector thrive in the city. 

Salaries and Compensation

Since web development plays a vital role in most industries, software engineers are in high demand in the UK. Software engineers with special certifications, knowledge of programming languages like JavaScript, Python, C++, and Java, and development methodologies like Scrum or Agile have better job opportunities with a higher salary. 

On average, a software engineer in London earns £62,965 annually. Of the various cities in the UK, South West London has the highest paying jobs with salaries of £88,776 per year, while East London has an average salary of £54,804. Software developers in Sutton earn an average salary of £65,853 annually.

Cost of Living in London 

As the capital city, London enjoys the privilege of providing the best job opportunities. Due to its culture, tradition, and economic significance, the cost of living is higher here when compared to other parts of the country. 

When compared to other cities in the world, London is expensive. It has some of the highest home prices in the country, with average prices in wealthy neighborhoods being not less than £1 million. It is the most expensive city in the UK and the second most expensive city in Western Europe.

The average living cost for a family in London is $6364 and for a single person, it is $2079. Many factors affect the living costs, like the rent for a house or flat, location, and more. A weekly salary of $6364 is needed on average for living in London.

How the high cost of living affects salaries and project costs

The high living costs affect the cost of projects and salaries of the top software development companies in London in direct proportion. While the cost of living increased in the UK in 2021 and 2022 up to 11%, it fell to 6.7% in 2023 as per the Consumer Price Index. Despite the fall, the prices remain high, which affects living costs.

For instance, in London, where the rental costs are higher than in other parts of the country, companies face more expenses.

 From renting office space to purchasing office equipment and paying salaries to employees, the costs are higher. Such high costs can affect the profit margin and make it difficult for new businesses to remain competitive and thrive. Further, in the UK, the sharp increase in the price of essential services and goods combined with unchanged wages make the situation more difficult.

Why Choose London for Software Development in 2024?

London has broken many records in the past few years with its exploding tech talent and support for tech industries. For instance, a record value of $25.5 billion was raised by the tech startups based in the city. The move makes London the fourth highest city attracting Venture Capital investment worldwide. London is next only to New York, San Francisco, and Greater Boston in raising such a big investment capital. Further, three out of four unicorns in the country are based in London, namely Benevolent AI, Hopin, and Marshmallow. 

Besides its flourishing startups, there are many other advantages for the top software development companies in London. It ranks high in areas like infrastructure, knowledge, talent, and connectivity. The city provides access to six international airports, and its public transport is highly applauded. As per a Startup Genome report, the startup ecosystem is second only to Silicon Valley. The favorable conditions make the city a favored spot for tech companies. Academic institutions like the Imperial College of London ensure that the city has the top tech talent for businesses.

One main reason is the strong resilience shown by the city in the face of economic turbulence. Tech giants Google and Microsoft have offices in the city, with Google’s office set to open in 2024. Apple also claims space in the city at the Battersea Power Station.


For many centuries, London has been popular as a global finance hub. Now, the digital innovation and startup culture have made the city even more enticing for the best software development companies in London. The boost given to the industry by the Government and private sector via skills training and the presence of universities and boot camps have fueled the growth of the software development industry here. 

With big companies like Facebook, Amazon, and Google based in the city, there is no dearth of job opportunities for software developers in London. It has a vibrant tech community that meets up with fellow professionals, learns innovative skills, and keeps up with the current trends. Besides the competitive salaries offered by top software development companies in London, the city has diversified culture provides a great opportunity for developers to meet with similar-minded people and hone their skills. 

With the city attracting international companies, it provides the best opportunity for developers and top software development companies in London when compared to other cities in the continent like Rome, Madrid, Paris, and others. Some of the top software development companies in London provide the best salaries and challenging jobs for interested developers. The advantages make it the best destination in 2024 for software development.

What are the most popular software development technologies used by companies in London?

The best software development companies in London use popular technologies like Java, Python, JavaScript, .NET, PHP, and Ruby on Rails. React, Angular, and Vue.js are some of the frameworks used prevalently.

How do I choose the right software development company for my project in London?

When selecting the best software development company in London, certain key criteria have to be considered. They include the company's reputation and its track record, expertise, and experience in using the required technologies, pricing, support, communication, and prompt delivery. 

What is the average cost of developing software in London?

The average cost of a software development project depends on the size of the project, client requirements, and the budget that the business has in mind for the project. For a static website that does not require custom features, the cost is around £10,000. 

On the other hand, a mobile app with basic features is priced at around £20,000, and the amount increases if complex features are needed or integration with third-party services is added. For a web app, the cost is £50,000 for basic features, and the rate increases with the app's complexity. The most expensive project is the custom enterprise software that ranges from £100,000 up to £1 million or higher based on the complexity needed. 

Are there any tax incentives or grants for startups looking to develop software in London?

The UK government offers support for startups via tax incentives such as

The R&D tax credit reduces corporation tax for companies dealing in science and technology advances. The firms should have less than 500 employees and an annual turnover of less than €100 million to claim a tax relief of about 225% of the qualifying expenditure. 

UK taxpayers can receive an income tax relief of 50% when they invest in qualifying startups for the first £100,000 seed investment as per the SEIS (Seed Enterprise Investment Scheme). 

Under the EIS (Enterprise Investment Scheme), a 30% income tax deduction is made for eligible private investors. 

The Patent Box is an incentive that provides 1a 0% lower corporation tax on profits.

What is the average turnaround time for developing software in London?

The turnaround time taken by top software development companies in London depends on the expertise, experience, number of team members, and project complexity. For basic software, the time taken is one to three months. For medium-complex software, the timeframe is from three to six months, and for highly complex software, more than six months is needed.

Do London-based software development companies offer post-launch support and maintenance?

Yes, the top software development companies in London offer post-launch services like maintenance, support, and managing the performance and monitoring of apps.

Can I hire a software development company in London for a remote project?

Yes, top software development companies in London accept remote projects. There are many benefits for a company hiring the services for remote work as it gives access to a skilled and diversified talent pool, enhances productivity and efficiency, and reduces costs.

What are some success stories of businesses that have used London-based software development companies?

Many success stories abound among businesses, which they attribute to the services of the top software development companies in London. Schnell is a software development company that has created low-cost and low-maintenance web portals for UK schools to fight bullying. Vention is another firm based in London that has helped many businesses. One example is its web development work for Upvest, an API startup that helped improve infrastructure, elasticity, and monitoring besides creating a platform from scratch.

How does the high cost of living in London impact the overall cost of software development?

Due to the high cost of living in London, software development projects can be difficult to complete on an affordable budget. In London, custom software developers can charge $100 to $150 per hour and $300 or more by top players. The charges for software development are high due to the high cost of rentals, food, utility bills, and more. For software development companies, renting office space, finding the right talent, and project management are impacted due to the high living costs.