Defining a software house, its types and key features of each kind

Existing and aspiring business owners looking to create a mobile application have a wide array of options to choose from. Even when it comes to making their vision a reality, they still have a lot of options.

There is also a wide array of alternatives present. Among them is delegating app or software development to an in-house team, and the other one is outsourcing it to an external app/software development company.

These kinds of companies operate under various kinds of names, like a software development company, a software development agency, a mobile app development firm and the like. All are synonymous with software development. 

Despite mobile device usage overtaking computer usage, apps are basically software for mobile devices. Hence applications (apps) are synonymous with software too. Hence, let us now read on to find out what are the defining features of software houses, the kind of service they provide and in what ways is it different from a typical IT staffing agency.

A software house – what is it?

A software house is basically a company that specializes in making products (and/or services) related to software. These firms can usually focus on business or consumer software. For instance, out-of-the-box software, single license software, or other products like Software-as-a-Service (SaaS).

The defining characteristic of a software is that it is a company that has a focus on development and distribution of software products. The objectives of a software house differ depending on the client base as well as the specialization.

While some software houses are specialists in contractor work commissioned from corporate clients, some prefer to focus on making out-of-the-box and unconventional software that can be easily sold in store shelves, online stores and app stores.

Another kind of software house present basically aids other firms realize their vision through provision of specialized software development services. Moreover, each of the approaches present needs a different design process, distribution strategy, professional approach, development methodology and the like.

In this post, readers will be able to focus on software house as a software development firm that creates software products for other firms, offering them their experience, skills, knowledge, and expertise.

The kinds of software houses present

The easiest way to classify software development firms is segregating them into two kinds: Product based and service based software houses.

Product-based companies are businesses that develop their own products and deliver them to end-users at the right price and offer. These kinds of end-users can be both individual customers and businesses alike (institutions are also categorized in the business category). They hence realize both the business to consumer (B2C) and business to business (B2B) models.

These firms focus on creating out-of-the-box solutions that they can later implement and configure on the client-side to solve various business problems.

A good example of a product-based software firm is Microsoft. Google and Electronic Arts are also other suitable examples. Why? Because they all provide a wide range of solutions (including out of the box ones) that can be configured and customized to match the specific needs of organizations today.

Should people invest in software products that are out-of-the-box?

This kind of software has its own specific limitations. Licensing can often be quite expensive. Moreover, companies that purchase these kinds of products also end up with products having a wide array of features which they didn’t need.

This is the reason a lot of companies prefer to make custom software solutions that address their unique business requirements. To accomplish this, they should contact software companies that are service based.

Service-based software companies work directly with businesses and corporations. They provide them with services like custom software development, software consulting or dedicated development teams (weather apps).

One of the main advantages of working with these software companies is that clientele obtain a custom software solution that matches the unique business processes, operations and needs. You can also count on the skills and the expertise of experienced developers which hence leverage the internal expertise of the firm.

What are the key features of a software house?

Since the competition in the market is cut-throat, software development often takes innovative approaches towards product and service development. They often do their best to make a strong brand to have the best developers on board. Here are salient features of modern day software houses:

• A focus on quality.
• Agile and Scrum methodologies deployed.
• Full-stack capabilities.
• Collaboration and communication to the max.
• Flexibility.