IT and software companies may sound similar, but they have different functions and serve different purposes. IT companies manage the IT infrastructure on behalf of companies to ensure everything runs smoothly and all IT services required for internal and external work are available at all times. They look after servers, take care of all devices, ensure data security, investigate what can be further automated to optimize processes, and run upgrades to the environment. On the other hand, software companies build products for clients, creating unique systems from scratch or customizing current software. They specialize in software development and project management, maintaining a powerful team of developers with vast experience in web and mobile development, a profound understanding of at least one programming language, and a deep understanding of tools that optimize the software creation process.
IT companies focus on providing the base infrastructure that ensures software solutions can function properly and be utilized by users. Software companies build on top of that base by creating solutions and systems that further enhance the company’s performance and facilitate the achievement of their business goals. While every software company is an IT company by its nature because it has to do with information technology, not every IT company is a software company. The tasks that IT companies are assigned mostly fall into one of three categories: function, fundament, and administration. For software companies, the key task categories are development and programming, design, and automation.
Despite their differences, both IT and software companies are equally important for enterprises. One can’t ensure proper functioning without a solid base that an IT company provides. Just like the business will hardly stay successful in the long-term if they don’t use top-notch solutions built by software companies. The terms “IT company” and “software company” will have different meanings depending on who’s talking about it. There are industry standards and generally understood terms, but some still insist that an IT company is the same as a software development company. The functions of the two company types are often mixed too. Technologies are evolving, and so is the tech world in general, so use the information as the basis but be prepared to see a different take on it in the real world.
Software companies have managed to build their own sub-industry within the IT world. Thanks to globalization, it’s become easier than ever to collaborate with software companies regardless of their location. This has led to certain regions turning into software development outsourcing hubs and boosting local economies by attracting thousands of clients from all over the world. Partnering with a software development company as an alternative to building an internal team has become highly lucrative. The entire process of hiring and maintaining IT talent has become very difficult and expensive, pricing many startups out of the chance to get experienced professionals. Reaching out to a software company for a service, such as a website update or an MVP development, in turn, has become easier and more affordable, allowing non-tech companies to achieve the desired results faster, with better quality, and also cheaper.
In conclusion, IT and software companies may have different functions and serve different purposes, but they are equally important for enterprises. While IT companies manage the IT infrastructure on behalf of companies, software companies build products for clients. The terms “IT company” and “software company” will have different meanings depending on who’s talking about it. The functions of the two company types are often mixed too. Technologies are evolving, and so is the tech world in general, so use the information as the basis but be prepared to see a different take on it in the real world.