I've read that Google doesn't give credit to Reciprocal Link Building as it does not indicate genuine link popularity. Then the question is, what happens when, for instance, a web development company has links that point to their clients' websites (as part of their portfolio) and on those clients' websites there is a link in the footer pointing to the development company? is that seen as good/bad practice? I'd like to hear your opinions, thanks.
Make the link a no follow. And also, Google is no fool they know all these and won't punish you for just that. I see a lot of contradicting report on SEO from people who doesn't know anything about it.
I read that they look at the anchor text. If it is the same on a lot of the links they will infer that you are using some sort of tool to get the links and penalize you.
Intelligent question This is called inadvertent reciprocal link exchange. But now, people have started no following portfolio links which tell Google not to bother about these links. These are created for users not Google. And as far as links have not been developed for Google it doesn't penalize you.
Natural element of link building is very important so make sure your link profile is looking natural and your link shouldn't be built too fast!