There are thousands of software companies in the world. These software companies provide :
Software product development companies, create applications that address a need hole. They solve problems of various kinds. For example: Facebook is a social media company which enhances the social experience and as everyone knows, we humans are very social. The risk appetite of such companies can vary from being frugal to being enormous. Facebook and many other companies started from a dorm or garage. Basically, you will find dreamers in a product company. A vision to be manifested. A dream made real.
Software development is both art and science. (unlimited and limited) The creativity part is the art and the management part is science. Typically, you have many different people in various roles working towards a common vision. There are three kinds of roles overall :
Top management (CEO, CIO, CFO, CTO, CMO, VP)
Middle management (Project / Program managers, Tech Leads, Architects – Solution / Technical etc.)
Bottom management (Software developers, analysts, testers, infrastructure, help desk etc)
The top management is responsible for strategy and planning. The middle management for planning, reporting and coordinating. The bottom management for software development, analysis, testing, deploying, reporting etc. The whole process is like the dance of the bits within a machine. It’s a symphony. Different people contributing bit by bit till the product goes live. Like a river flowing into the sea and the sea flowing into the ocean, every day sees progress being made towards the end goal – IT calls it Deliverable, which is a buzzword for the application.
Example : Facebook, Google, Zoho etc.
Software services company do not take that many risks. They are also dreamers like Products companies. They typically work as consultants to various verticals, a little product development here and there. They sometimes act as outsourcing companies by taking advantage of the varying pay scales across the world. Sometimes they are system integrators, which means they take care of the customers’ problem either piecemeal or complete. Sometimes they render support and maintenance services. Sometimes they offer training programs. And so, on and so forth.
Example : TCS, Cognizant, Infosys, Wipro etc.
The distinction between Products and Services companies are blurring day by day. This is a trillion dollar industry and to discuss the number of players is beyond the scope of this article. A lot of work gets done and we are solving problems from the mundane to the complex. Step by step – We are all moving towards a dream of a better world – for us, our elders and our kids.
Dedication: To all the IT people and their support staff.
P.S: More in depth analysis coming up shortly. Watch this space.