Key Difference Between IT Companies and Software Companies

Do you ever wonder why technology has become an essential part of our lives? The answer is easy and simple. It brings convenience to our life and saves our time and energy. Recent technological advancements have revolutionized the way we live our lives, from immediate access to the internet on the move to the capacity to contact practically anybody in the world by dialing only a few digits.

Most importantly, most of today’s businesses are developed based on technology, which creates the IT (Information Technology) Industry as the fastest-growing sector in recent times. In this industry, IT companies and Software companies are two important parts that share many similarities. However, there are also several differences present between IT companies and Software companies.

So, IT companies and software companies are part of the same industry with different roles of their own. This article will assist you in comprehending the major differences between IT companies and software companies.

IT Company

IT Company

The word “IT or information technology” is a generic term that refers to the creation, processing, storage, security, and sharing of all types of electronic data using computers, storage, networking, and other physical devices, infrastructure, and procedures. 

An IT company takes care of all of these things, as well as a variety of other tasks, such as providing expert advice on your IT system and troubleshooting errors. To put it in simple terms, an IT company is in charge of overseeing the usage of devices for storing, retrieving, and transmitting data.

Producing and distributing computing devices, assisting the manufacturing sectors of technology, researching technological developments, building software, and many more are part of the services of an IT company. The user and the company are the focal points of this sort of business. According to a statistic from Classicinformatics, The IT industry is currently recovering and is expected to resume growth in 2021. With a 5-percent CAGR (compound annual growth rate), it is expected to recover and surpass its pre-pandemic status by 2024.

Software Company

Without a doubt, “Software” is at the heart of almost every company’s operations. From major corporations to small businesses, the software is used for accounting, marketing, sales, supply chain management, and a variety of other purposes. The software industry has risen to become the most powerful industry in the world today. According to Unosquare, Software companies design, develop and maintain applications, frameworks, or other software components for businesses or consumers. In a short, they work on technologies, distribution, and production of software products. Besides, most importantly, they have become a huge contributor to Bangladesh’s digital economy.

Software companies are mainly focused on-

  1. Development of Softwares
  2. Maintenance of Softwares
  3. Publication of Softwares
  4. DevOps Management

These four tasks are the sum of many micro-tasking like researching, specifying, designing, prototyping, programming, documenting, deploying, testing, and bug fixing. Software development firms put all these pieces together for software development ensuring they are aware of the essential factors during the development phase. However, each organization will have its own engagement model and procedure when interacting with clients.

How does IT Company Work?

graphics of technology

An IT firm is responsible for a variety of duties that are critical to the company’s success. The yearly value of the worldwide information technology (IT), IT services, and business services industry exceeds one trillion dollars. (Source: Statista

They do a lot of work in the background, in addition to ensuring that your devices run properly. Employees at IT organizations have the expertise to use trending software development tools, as well as to make sure to keep their businesses running smoothly. Indeed, IT companies are in charge of keeping tech operations and systems running smoothly. They ensure that gadgets work properly and data is kept protected. Furthermore, IT is required for the upkeep and technical support of the most up-to-date software and gadgets. IT provides hardware and information systems to the whole enterprise.

Most of the tasks of an IT company fall into three categories, which are-

  • Function: This is the main purpose of an IT company. It is the responsibility of the IT businesses to ensure that operations function smoothly.  They are also in charge of installing new software and gear, as well as providing technical assistance. Overall, IT companies support the device, software, and data management for their clients.
  • Fundament: The IT department must also ensure that all systems are in place to meet the demands of the organization for which they operate. This implies that they handle hardware, networks, and other operations in accordance with the needs of the enterprise.
  • Administration: The IT department is also in charge of monitoring the use of systems and networks. They establish guidelines for how teams inside firms utilize technology and what it is used for. They also develop regulations that govern what information is available and who has access to it.

An IT company and a software company have some common responsibilities but they still have significant differences between them. To understand more properly, let’s see how a software company functions.

How does a Software Company Work?

Software companies are becoming more and more demanding in recent times and contributing a lot to the economy. According to Truelist, the worldwide software development industry was estimated to be worth $389.86 billion in 2020. So, what does a software company do? Software firms provide programs and software that are utilized on a daily basis by consumers and organizations. In fact, their work is the foundation of design and development. This is the first step in creating solutions that are beneficial to both customers and enterprises. One of the most popular approaches for software development is a flexible methodological approach. The design aspect is critical in ensuring that the application is user-friendly.

We can divide their key services into 5 sections, which are –

  • Development: It is the initial stage in developing goods that are beneficial to both customers and organizations. The development process pushes teams to concentrate on continuous integration, collaboration, and testing in order to develop the best products possible.
  • Design: The design aspect is vital to ensure that the program is usable by users. Software companies take the project requirements and turn them into a product that the end-user can use. This frequently necessitates a thorough knowledge of who will be using the program, as well as several rounds of testing to ensure accuracy.
  • Programming: Design and programming are interlinked. Indeed, programming is the real nuts and bolts of the software itself. Programmers strive to create software and guarantee that it serves its intended function. Software firms, and particularly their programmers, are also involved in the maintenance and modification of current software.
  • DevOps: DevOps is a collection of processes that bring together software development and IT operations. Its goal is to reduce the systems development life cycle and provide high-quality software delivery on a regular basis.
  • Automation: Automation is a term used to describe technology applications that require little or no human involvement. This involves Business Process Automation (BPA), IT automation, and personal applications such as home automation, among other things.

The growth of Software Development in Bangladesh is immensely high and it is increasing day by day. And with proper support and observation, it will bloom and have a great impact on our development as a country.

Key Differences between IT and Software Company

Some of the services of a software company fall under the services of an IT company. However, the main difference between IT companies and software companies is that software firms produce, alter, or maintain valuable products, whereas IT companies build, update, or maintain IT infrastructure. IT firms guarantee that all systems, devices, and software operate together to help individuals complete tasks.

Software companies mainly develop, distribute and maintain software. On the other hand, IT stands for Information Technology, and it encompasses any job that has to do with computer operation or development, where software is a very crucial and significant part of it. So, to conclude, the differences between IT and Software companies are very subtle but still exist.

Importance of Software and IT Companies

discussing about projects

According to CompTIA, there are more than 525,000 software and IT companies in the United States (approximately 40,500 tech startups were established in 2018 alone). And the rise of these two sectors in Bangladesh is also very visible and impactful. In recent times, many startups and businesses in the Software and IT sector are increasing day by day which is helping our economical growth as a country. Though these firms operate in the same sector, in terms of duties and responsibilities, some differences between IT companies and software companies exist. However, both types are essential to maintain this technology-surrounded environment of ours. They both assist in the building and growth of new businesses, maintain a digital lifestyle, and turn the world into a more modern version of itself. There are already many IT and software firms in Bangladesh that are providing excellent services and actively supporting our country in becoming a digital country.


What is an IT company?

Ans: IT Companies means the business of providing information technology, providing computing devices, software development, and consulting services to clients. 

What does an IT company do?

Ans: IT Companies make sure the operations of the technical programs are running smoothly and the data is secured.

What is a Software?

Ans: Software is a collection of instructions that tells a computing device how to run or what to do.

What is a Software Company?

Ans: A company that designs, develops, and maintains software solutions is called a Software Company.

What does a Software Company do?

Ans: The work of a software company involves developing, deploying, testing, and publishing software as well as making sure their product is of optimum performance through quality assurance and maintenance of the final output.

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