Types Of Software Industry

types of software industry

Software industry is a term that we are all quite familiar with and something that is gaining worldwide popularity. However, the term software industry is a generalized one and do not represent a particular industry and instead it stands for different types of software industry.


Project oriented industries are the types of software industry that solely focus on project works and nothing else. Clients will specify their needs to project oriented software companies and ask them to do the work, or the software companies themselves will hunt for projects. Such types of software industry advertise through their websites or other media for winning more projects and the survival of these industries solely depends on the number of projects they have.

In these types of software industry once the company wins a project, the project will be analyzed to know about the requirements such as required work force and infrastructure. Such companies can hire people based on the number of projects they have and major companies keep a bench of employees that can be used in case of immediate and emergency projects.


These are the types of software industry that work on rolling out products and do not focus much on doing projects and do not rely on continuous incoming projects unlike project-oriented companies. Such companies have research teams that develop a new idea and the aim of the company will be to implement the idea practically. These types of software industry require huge capital and investment since the profit cannot be guaranteed until the success of their product. These are the types of software industry that work under huge pressure and risk because if the product they roll out turns to be a failure, all their investment will be lost. In a project-oriented company, the company will get their money whether the project they did was a commercial success or not because their only responsibility is to complete the project successfully as per client’s requirements and making it a success is client’s responsibility.

However the profit made by such companies is huge when the product becomes a success. Reproducing copies of software products do not require huge material investment and that is the advantage of product oriented companies.


It service providers are the companies are the types of software industry that provide software services to other enterprises. The service can be either business-to-business or business to client. Such companies do not focus much on products and rather take care of ensuring the best service to the client as required by them. IT services include telecom, call centers, IVR services etc.

The profit made by these types of software industry are more compared to product-oriented companies even though their primary focus is not on software development. Such companies always play the safe game because they always get paid for the service they provide and they will always get clients as long as they maintain their service quality better than the competitors.