according to Sam Altman software houses are incapable of creating successful startups from the start for their clients. Is it true? Do you know any successful startups done entirely by software house?
I think alot of it depends on how the deal is structured. If the software house doesn't have ownership in the final product, then the incentives just aren't going to line up and the product will suffer.
http://thenextweb.com/apps/2012/11/18/from-ios-to-android/