What is the Difference Between IT Company & Software Company?


The difference between an IT company and a software company is not clearly known to even to the people working in this field. There is sure a fine line between the two. Many stats reveal trends that are common for both sorts of companies. Moreover, the functions of these companies utilize technologies, computers, and software.

However, it is important for you to understand the basic difference between software and IT companies and know their major functions. The purpose of both types of companies is different.

In this article, you will know what is an IT company, what is a software company, and what are the differences between the two.


What is IT Company?


An IT company or information technology company houses a team of IT professionals to offer guidance, services, and management related to several aspects of information technology. These aspects include computer systems, networking, electronic hardware, software apps, the internet, and the overall infrastructure on which the system is hosted.

Since there are different sectors in IT, like network administration, web development, technical support, programming, etc., the IT companies have different professionals to handle these things. Therefore, a good IT company provides a broad range of information technology services.

  • Common IT Services


  • Network security
  • Web hosting services
  • Cloud services
  • Help desk IT services
  • Data storage and management
  • IT consulting
  • Cybersecurity services


Functions of IT Company


The primary functions of an IT company include:


  • Functionality: An IT company ensures that all the operations and functionalities in a business run the way they should. The efficient work of devices and data security is taken care of by the IT pros. The installation of new hardware and software also come under the roles of an IT person.
  • Infrastructure: The setup and management of the overall IT infrastructure including the network, firewall, security systems, etc. is the function of an IT company.
  • Governance: Creation of policies to determine which data is supposed to be accessed by specific people and permission granted for certain information is another major role of an IT person.


What is Software Company?


Software companies are those developing different types of software and technologies for software. A software company usually handles the software development, tech stack, and distribution of the product.


There are several types of software companies. There are software development companies in Singapore that create custom and on-demand products for businesses. Some companies provide ready-to-use software like Microsoft Outlook, Adobe Illustrator, and Google Chrome.

Some software companies hold expertise in developing commercial off-the-shelf products, like Siebel Systems. Software-as-a-Service (SaaS) products like Gmail, Salesforce, and Zendesk are also created by software firms.

Hence, there are different kinds of software developers in Singapore and other countries building required software solutions.


Functions of Software Company


A software company works on several stages of software. The major functions include:

  • Planning & Analysis: In this stage, the features and functionalities for software, user base, how things will operate, etc., are understood and finalized.
  • Design: It covers the finalization of required hardware and system requirements. The overall software architecture is designed.
  • Development: This is the coding part where the developers write programs to create features and functionalities in the app.
  • Testing: Testing is done to test the quality of the product and fix the potential bugs and errors that remained during development.
  • Deployment: Once testing is done, the software is delivered or deployed to the client.


IT Company vs Software Company: Differences


If you are still wondering what is the difference between an IT company and a software company, then we have more details below.

IT is actually a broad term that consists of the use of technology, computers, and software. The aim of utilizing IT services is to optimize operational efficiency, assist a business in tackling challenges related to technological implementation, ensure networks are running optimally, secure the data, and enable a smooth IT environment.

In contrast, a software development company in Singapore or any other region address only a single component, which is developing software for some purpose.


Let’s understand this with an example.


For instance, if somebody wants to run an online grocery business, then he can get a grocery mobile app developed. This is done by a software company. The software development agency in Singapore will also handle the testing and design part of the app or software.

Whereas, the role of an IT company in this kind of mobile app is to make sure that the required technologies systems, devices, web hosting, etc. work efficiently. If there are issues related to the hosting server, it is the job of the IT company to resolve them. In case there are any issues related to user experience or bugs, then the software company will address them.


Wrapping up:


Both IT and software companies work on technology and share some common things, which often keeps people thinking about whether there is any difference between the two. We hope this article helped you understand what is an IT company and a software company, and the fine line between the two. Still, have any doubts or queries? You can write the same in the comments.

Written by Emily Cooper

Emily Cooper is a technical content writer who has been working with the mobile app development team at Octal Info Solutions. Over the years she has researched about android and iOS app development and promises to deliver the most reliable solutions. Other than researching tech-related queries, she loves to eat and read books. You can always find her in the nearby market buying quirky elements for her super cozy place.

Leave a Reply

Your email address will not be published. Required fields are marked *

Are You Obtaining an SSL VPN Mistake Message?

7 Best Online Medicine Delivery App