5 Different Types of Software Companies You Should Know About

I have been working in the software industry for nearly 20 years. I worked for different kinds of companies. Based on this experience, I will share some basic information about these types of companies.

Introduction

There are many different types of software companies, from small startups to large enterprises. In this blog post, we’ll explore the different types of software companies and their business models to some extent.

Why Is It Important To Know The Types of Software Companies?

There are many different types of software companies, each with their own strengths and weaknesses. It is important to know the different types of software companies so that you can choose the right one for your needs.

Different Types of Software Companies

There are five main types of software companies:

Product Companies:

These companies create and sell software products. They may sell physical copies of their software or distribute it electronically.

Advantages and disadvantages of Product based companies:

• Quality is the king for these companies
• Hiring is in  limited numbers
• Usually hire top talent
• Job is relatively secured
• Flexible working hours
• Promotion is slow 

Examples of Product based companies are : SAP, CISCO, T-Mobile, Sony, Salefore, Pega etc.

Service Companies

These companies provide software-related services, such as consulting, training, or support.

Advantages and disadvantages of Service based companies:

• Client is the king for these companies
• Hiring is in  large numbers
• Usually hire across talent groups
• Job is insecure
• Fixed working hours
• Promotion is fast

Examples of service based companies are : Accenture, Infosys, HCL, Wipro, Cognizant, Capgemini,  etc.

Custom Development Companies

These companies create custom software solutions for their clients.

Advantages and disadvantages of Custom development companies:

• Client is the king for these companies
• Hiring is in small numbers
• Usually hire specialized talents
• Job is relatively insecure
• Fixed working hours
• Promotion is slow

Examples of custom development companies are : Ness Technologies, Tech Mahindra, Infosys etc,.

Open Source Companies

These companies develop and distribute open source software.

Advantages and disadvantages of Open source companies:

• Quality is the king for these companies
• Hiring is in large numbers
• Usually hire specialized talents
• Job is relatively insecure
• Flexible working hours
• Promotion is slow

Examples of Open Source companies are : Adobe, Cloudbees, Cloudera, etc,.

Body Shopping

These companies just provide the human resources to the above mentioned companies.

Advantages and disadvantages of Body Shopping companies:

• Client is the king for these companies
• Hiring is in large numbers
• Usually hire all types talents
• Job is highly insecure
• Fixed working hours
• Promotion is slow

Examples of Body Shopping companies are : Trident, BrainVire, Qburst, ISHIR, etc..

What Type of Software Company Do You Want To Join?

When you’re looking for a software company to join, it’s important to consider what type of company you want to work for. Do you want to work for a product company or service company? Do you want to work on consumer-facing products or enterprise-grade software? Do you want to work on open source projects or proprietary software?

No matter what you’re looking for, there’s a software company out there that’s a perfect fit for you. It’s just a matter of finding the right one. In this article, we’ll take a look at the different types of software companies and what each one has to offer.

Conclusion

So, there are different types of software companies. Some provide service, some develop their own software products, provide only human resources etc. Every type of  company has its own advantages and disadvantages from a job seeker point of view. 

It is up to you to decide which is suitable for your skill set. So, analyze yourself and join the company.

If you have any specific question, please do post the comment below.