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Understanding the 7 Types of Software Companies and What They Actually Do

January 20, 2026 | Author: Levon Hovsepyan

Understanding the different types of software companies is crucial for businesses looking to stay ahead of the curve.

Whether you're considering partnering with a software development firm or simply trying to grasp the diverse landscape of the tech industry, knowing the nuances between these companies will help you make informed decisions.

According to Gartner, worldwide IT spending is forecast to reach US$5.61 trillion in 2025, up 9.8% from 2024. In this article, we'll dive into the various types of software companies, highlighting their unique characteristics, services, and the challenges they aim to solve.

Different Types Of Software Companies And Their Impact

Knowing the different types of software companies can help you choose the right partner for your business, whether you're looking to innovate, scale, or solve specific challenges.

  1. Enterprise Software: Powering Digital Transformation

Enterprise software companies are the backbone of large, established organizations. These companies work with businesses that have predictable revenue streams and seek tech partners to scale and optimize their operations. Enterprises typically undertake long-term projects that require services such as digital transformation, system automation, and scaling solutions.

  • Company Size: 50+ employees
  • Key Roles: CEO, CTO, CIO, VP of Engineering, Head of Digital Transformation

These companies are driven by committees that include IT leaders, procurement teams, and business stakeholders, making their decision-making process deliberate and often slow. Engagements are typically structured around staff augmentation, managed services, or extended development teams. 

For example, Finance in Motion and Service Titan work with software companies to continuously enhance their business operations, pushing digital transformation across their workflows.

What They Do: Enterprise software companies help manage and optimize complex operations through scalable, customized solutions. 

They build infrastructure that supports large teams, intricate processes, and long-term projects, often integrating with legacy systems.

  1. Startup Software: Fast, Flexible, And Ready To Scale

In stark contrast to the rigid structure of enterprise software companies, startup software companies are focused on innovation, speed, and market disruption. These companies typically work with early-stage, VC- or self-funded organizations looking to develop their minimum viable product (MVP) and bring it to market quickly. Speed-to-market is a priority, with companies operating under project-based contracts that emphasize flexibility and budget control.

  • Company Size: 10-50 employees
  • Key Roles: Founder, Co-founder, CEO, CTO

Startups are driven by their leadership teams and prioritize agility in every project. These companies may face tight budgets and need to iterate quickly, making them ideal for clients that need rapid development cycles. For example, HerculesAI and TradeCloud are startup projects that require flexible, agile software development to iterate on new ideas and launch quickly into competitive markets.

What They Do: Startup software companies specialize in rapid MVP development, focusing on getting a functional product to market with minimal investment. 

Their projects are often scope-based with specific milestones, designed to test ideas and validate market assumptions quickly.

  1. SaaS Solutions: Streamlining Your Business

SaaS companies are rapidly becoming a dominant force in the software industry. These companies provide subscription-based software solutions that allow businesses to access applications over the cloud, eliminating the need for complex IT infrastructure. On average, companies today use 371 SaaS applications.

  • Company Size: Varies (often 10-100 employees)
  • Key Roles: CEO, CTO, VP of Product

What They Do: SaaS companies offer scalable, cloud-based software solutions that enable businesses to access tools via a subscription model. Examples include customer relationship management (CRM) software, project management tools, and business intelligence platforms.

  1. Custom Software: Built For Your Unique Needs

For companies that need bespoke solutions, custom software development companies specialize in building software from the ground up to meet specific business requirements. These companies offer highly flexible solutions, often developed to integrate with existing systems or address unique challenges that off-the-shelf products can’t.

  • Company Size: 10-100 employees
  • Key Roles: CEO, CTO, Product Manager

What They Do: Custom software developers work closely with businesses to create tailored solutions for everything from supply chain management to HR systems. 

They provide end-to-end development services, including planning, design, development, and post-launch maintenance.

  1. Outsourcing & Staff Augmentation: Expanding Your Team Effortlessly

Outsourcing and staff augmentation companies provide additional support to businesses by supplying skilled talent for specific projects or ongoing needs. These companies help businesses scale their teams without the overhead of hiring full-time employees. The global outsourcing market is projected to be between US$730–850 billion in 2025, with a strong growth trajectory.

  • Company Size: Varies (often 50+ employees)
  • Key Roles: CEO, CTO, HR Director

What They Do: Outsourcing companies provide development teams or individual developers for short- or long-term projects. 

Staff augmentation companies offer specialized talent that helps businesses expand their teams quickly without sacrificing quality or speed.

  1. Blockchain & Fintech: Transforming Financial Services

Blockchain and fintech software companies are at the forefront of transforming the financial services industry. These companies provide solutions like cryptocurrency platforms, blockchain infrastructure, and payment processing systems.

  • Company Size: 10-100 employees
  • Key Roles: CEO, CTO, Blockchain Engineer, Product Manager

What They Do: Blockchain companies develop decentralized solutions for secure transactions, while fintech companies offer financial technology solutions for mobile payments, investment management, and banking automation.

7. Consulting & Systems Integration: Bridging Your Tech Gaps

Consulting and systems integration companies specialize in helping businesses navigate the complex landscape of software development, IT infrastructure, and digital transformation. These companies provide expert advice on implementing technology solutions and integrating them seamlessly into existing workflows.

  • Company Size: 50+ employees
  • Key Roles: CEO, CTO, Systems Architect, IT Consultant

What They Do: Consulting companies provide strategic guidance on technology adoption, while systems integrators ensure that software applications and IT systems work together effectively.

No matter the stage of your business or the specific challenges you face, understanding these types of software companies can help you find the right partner to support your growth and drive success in today’s competitive digital landscape.

For the visual:
Title: Types Of Software
Format: A table with a bit of info

What's within: 

Software Type

Key Focus/Description

1. Enterprise Software

Long-term projects involving digital transformation, automation, and scaling.

2. Startup Software

Develops MVPs for early-stage, VC- or self-funded organizations.

3. SaaS Solutions

Subscription-based software solutions hosted in the cloud.

4. Custom Software

Builds software tailored to specific business needs.

5. Outsourcing & Staff Augmentation

Scales teams with temporary or specialized talent.

6. Blockchain & Fintech

Solutions for cryptocurrency, blockchain, and payment systems.

7. Consulting & Systems Integration

Advises on implementing and integrating technology solutions.

Also read:

How To Choose The Right Software Partner For Your Business Needs

The software development landscape is diverse, with each type of company offering tailored solutions. Whether you're scaling enterprise software or driving innovation in startups, understanding these differences helps you choose the right partner. As technology evolves through AI, blockchain, and custom solutions, the right partner can boost efficiency, foster innovation, and give you a competitive edge.

At VOLO, we understand that selecting the right software partner is a critical decision that shapes your business's future. After exploring the different types of software companies, we recognize how essential it is to find a partner that understands your needs and aligns with your vision and growth strategy. The right partner should work collaboratively with you to help you overcome unique challenges while focusing on long-term goals.

Whether you're scaling a complex, long-term project that requires specialized talent or looking to prototype a new idea rapidly, VOLO offers a range of services tailored to meet your needs. We specialize in custom software development, helping businesses create scalable, efficient solutions that drive success across various industries. We also provide staff augmentation and consulting services, offering expert guidance to ensure seamless system integration and the adoption of innovative technologies.

We believe that a successful software partnership isn’t just about delivering a product; it’s about building a long-term collaboration that grows with your business. Whether you’re focused on innovation, system optimization, or market disruption, we are here to help you reach your full potential in the ever-evolving tech world. 

Let us be the partner you need to transform your business and take it to the next level.

Talk to VOLO’s experts

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levon hovsepyan avatar

Levon is an experienced technology consultant leading the strategic direction of VOLO. His work focuses on AI enablement, digital transformation, and how organizations adopt and govern technology at scale.

 

With a background in engineering and product leadership, he brings a systems-level perspective to technology and business decisions. His writing explores AI adoption, engineering discipline, and leadership in building reliable digital systems in complex, regulated environments.

Levon Hovsepyan Chief Business Officer

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Frequently Asked 
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When choosing a software partner, consider factors such as your company’s size, budget, and business goals. Think about the level of expertise required, whether you need a highly specialized skill set or a flexible and fast iteration process. Additionally, assess the alignment with your industry; partners with experience in your sector can better anticipate your unique challenges. Finally, consider the partner’s ability to scale with your business as it grows, and their willingness to evolve with your long-term goals.

If your company has complex, long-term projects and needs stability, security, and scalability, an enterprise software solution might be the best fit. These solutions are ideal for businesses that require robust systems and long-term, large-scale projects. Conversely, if you're in the early stages of development, with a focus on agility, rapid prototyping, and cost-effectiveness, a startup partner will better suit your needs. They can provide quick development cycles and help you reach market fit faster.

Partnering with a tech innovator or disruptor can provide your business with cutting-edge solutions and give you a competitive edge. These companies specialize in emerging technologies such as AI, machine learning, and blockchain, offering highly customizable solutions that are tailored to the latest advancements. They can help your business stay ahead of the curve and open new avenues for innovation and growth, particularly in industries looking to revolutionize traditional processes.

Working with a software company on a long-term project typically involves multiple stages, including planning, design, development, and testing. Early in the partnership, expect detailed discussions about your business goals, system requirements, and milestones. You'll be collaborating with teams throughout the project to ensure the product aligns with your expectations. Additionally, ongoing support and maintenance will be crucial as your system evolves and adapts to changing needs. Long-term partnerships often include regular updates and enhancements, ensuring your technology remains competitive.

The success of a partnership with a software company can be measured through both quantitative and qualitative metrics. Quantitative metrics include project delivery timelines, budget adherence, and the impact on your business operations, such as improved productivity or reduced costs. On the qualitative side, you should assess factors such as communication effectiveness, the company’s willingness to innovate, and its ability to understand and solve your business challenges. Continuous feedback loops and post-project reviews can also help gauge how well the partnership met your objectives and long-term goals.

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