If we take the Banking example, not counting the Central Reserve Banks, there are the below types of banks:
1. Investment Banks (Merchant Banks)
2. Retail Banks
3. Commercial Banks
4. Credit Unions
5. Savings and Loans associations
6. Green Banks
7. Digital Banks
8. Private Banks (Wealth Management Banks)
9. Etc.,
Each one has its own specializations and combinations of USPs (Unique Selling Proposition) and financial products.
But there is also the Universal Banks – the bank that is invested into everything under the umbrella of Banking operations.
Similarly, the companies under the Information Technology Sector can be classified into many different types.
Let us focus on hardware-based companies that sucks-in humongous amount of money as investment. These are not for the entrepreneurs who wants to start small with a small to medium investment. (Please note that Amazon online shop site spurned the growth of AWS)
Hardware focussed IT companies:
1. Cloud computing infrastructure vendors (supporting IaaS (Infrastructure as a Service, PaaS (Platform as a service) and SaaS (Software as a Service) - Example AWS, Google, Azure etc.,
2. IaaS – Cloud Storage Providers – Most of the above giant companies are IaaS vendors since without infrastructure other services cannot exist. Please refer to - https://www.techradar.com/news/best-iaas-provider.
Specialist IaaS companies:
Documents/Photo/Artifacts storage companies –Google drive, Dropbox etc.,
Data Management Services - Wasabi Cloud Storage, Splunk, Salesforce data cloud etc., please refer to
https://www.capterra.com/sem-compare-b/data-management-software for important characters of data
management companies.
File Management Services – Peer Software, Unisys, Veeam software, pCloud etc.,
Code artifact/version control platforms – GitHub, Gitlab etc.,
Etc.,
3. PaaS vendors only:
e.g. Heroku (container-based PaaS environments), VM Ware Tanzu platform, Engine Yard (DevOps PaaS platform), Mendix aPaaS (low code environment). For more details, please refer to - https://paasfinder.org/vendors .
4. SaaS vendors only:
Any software deployed in cloud and available in public internet domain can be classified as a SaaS company. Some of the popular examples are
Google.com with all its online products
Salesforce.com (with CRM capabilities and more)
ServiceNow (ITSM, HR Service, CRM and more)
I have to list SaaS in software development too. The companies in this sector are gigantic companies and the softwares are usually platforms along with a range of product offerings.
5. MADPs (Mobile App Development Platforms)
Mobile app development platforms (MADPs) are software tools and environments that help developers build, test, and deploy applications on various mobile operating systems such as iOS, Android, and Windows. These platforms mainly fall into two categories:
Native platforms, which are optimized for specific OSes and provide full access to native APIs and performance benefits.
Cross-platform platforms, which allow development of apps for multiple OSes from a single codebase, improving efficiency and reducing costs.Common features include drag-and-drop interfaces, reusable components, debugging tools, cloud integration, and support for deploying to multiple device types and app stores.
These platforms are expected to help develop mobile apps quickly. Examples are Flutter, Xamarin, Ionic, Unity, Apache Cordova, Sencha etc.
6. Chip design companies:
Intel, AMD, nVidia are examples of this kind of companies.
7. Firmware companies
These companies specialize in making smart gadgets and embedded software. Leading firmware companies include major technology giants like Intel, IBM, Samsung, and dedicated firmware developers such as Softeq, Conclusive Engineering, and Ai Superior, offering innovative embedded software and IoT solutions globally.
8. Other companies focussed on building computers, telephony, laptops, tablets, computer/gaming related peripherals.
All the above business models need exhaustive investment and top talents. This industry is perhaps saturated for the current times, and the marker share is difficult to obtain and/or expand.
Software focussed IT companies:
Please note that further due diligence is needed to identify the full scope of starting such a software company along with team building, budgeting and scheduling activities.
At least I know of 6 different ways of starting a software company:
Path A: Where the entrepreneur is a code guru and he and his teammates have a reliable product idea. They are either willing to put down their own money or on the lookout for an investor.
Path B: Find a company that can support your product ideas and who needs that product on an urgent basis. Use that company as your launching pad. It will be a win-win symbiotic partnership. The company gets the needed product and support, and you have a winning product on hand to sell along with a client who can vouch for that.I know at least 2 companies that took this route.
Path C: Where the entrepreneur is a smart player who knows how to assemble a reliable team and can settle for supporting one or more of the ITES models (e.g. Data Analytics for pump manufacturing companies or ESG/SCADA project/product for textile mills). Again, they will need investors or should be willing to put their own money or take a bank loan.
Path D: Groom a team on one or more popular software platforms or products and then become a specialist in customizing the platform or products as per the client needs. You will need tremendous amount of support from the parent company to excel in this area. There are such platform and product companies available that is willing to take 10 steps towards you if you can successfully take one step towards them. (e.g. Microsoft or AWS support to their vendors are legendary)
PATH E: Another aspect is to start a IT consultancy company focussing on providing consultants and/or to support IT activities like strategic planning and assessment, technology implementation and integration, digital transformation and modernization, cybersecurity and compliance, cloud strategy and migration, project management and ongoing support, program management, Specialized services (Services can also include application development and modernization, systems integration, data analytics, automation, enterprise resource planning (ERP), and managed IT support, among others. These areas help businesses innovate and stay competitive by adopting tailored technology solutions.) Sometimes these companies can loan software and hardware engineers and admin on loan under contracts.
(please refer to - https://aimconsulting.com/insights/it-consulting-services-meaning-expertise-business/ )
PATH F: Like Universal Bank, focus on more than one paths to morph into a systems integrator.
There are other niche paths such as in ethical hacking, game developing, product reselling, IT training, content hosting (blogs/media etc. in edge computing),
Based on my experience in working in 100s of RFPs the below are some of the basic sanity details that a service seeker company expects in the companies that seek projects, products, contracts and/or vendor ships.
Company profile and registration details
Company leadership details
Company financial data (such as Annual statements)
Company employee information
Company website
Company investor information
Company clientele and their testimonies
Explanation of how their use-cases are met in your service/product offerings
Though there are a myriad of companies that specialize in software development/adoption and customization, I would like to highlight some types of companies that are being adopted as popular business models.
1. ITES (IT enabled services industry)
2. Platform companies
3. Software development companies
4. Software Product development and services companies
5. IT Consultancy companies
6. Mobile App development companies
7. Mobile App development and services companies
8. Product Partners, System Integrators, Software Customization Consultants
9. Data Management and Analysis Companies
10. Companies specializing in SCADA products and that are focussed on ESG outcomes
11. Etc.,
Let us briefly discuss each one of the above.
1. ITES companies:
Please refer to the below 2 links that has adequate information on the ITES functions that also lists some of the characteristics of an ITES company.
https://cio-wiki.org/wiki/Information_Technology_Enabled_Services_(ITeS)
ITES Full Form: Information Technology Enabled Services | WiZR
To quote from the above references in italics:
What is ITES Full Form?
ITES stands for Information Technology Enabled Services. It refers to the outsourcing of various business functions that require the use of information technology.
The scope of ITES is vast, covering a wide range of services such as customer support, data entry, technical support, content moderation, and more. It has revolutionised the way businesses operate by providing them with access to highly skilled professionals and advanced technology solutions.
Core Functions of ITES
1.Customer Support: Assisting customers with their queries and concerns through various channels like phone, email, or chat. These usually take form as standard call centres and the employees undergo rigorous training before the actual job.
2.Data Entry: Accurately entering and managing data into computer systems for easy retrieval and analysis. Various data entry tasks include GIS data, medical transcription works etc.,
3.Technical Support: Resolving technical issues faced by customers related to software, hardware, or other technology products. This support companies can cover hardware support or software support.
4.Content Moderation: Reviewing user-generated content on online platforms to ensure compliance with community guidelines.
5.Back-office Operations: Handling administrative tasks such as payroll processing, invoicing, and inventory management. Some of the processes handled in the back-end include O2C, P2P, R2R, AP, AR etc., This is supported by adequate level of automations (RPA).
6.Financial Analysis: Analysing financial data to provide insights for decision-making and forecasting.
7.Research and Analytics: Conducting market research or data analysis to identify trends and make informed business decisions.
Services Offered by ITES
1.Business Process Outsourcing (BPO): Outsourcing non-core business processes like payroll management, human resources, finance and accounting, etc.
2. Knowledge Process Outsourcing (KPO): Outsourcing high-end knowledge-based tasks such as legal research, market research, data analysis, etc.
3. Customer Relationship Management (CRM): Managing customer interactions and relationships to enhance customer satisfaction and loyalty.
4.Technical Support Services: Assisting customers in resolving technical issues related to products or services.
5. Data Analytics: Collecting and analysing large sets of data to extract valuable insights for business decision-making.
6.Digital Marketing: Promoting products or services through digital channels like social media marketing, search engine optimisation, etc.
7.E-commerce Support: Assisting businesses in managing their online stores, order processing, inventory management, and customer support.
8.Transcription Services: Converting audio or video files into written text for various purposes like legal documentation or medical records.
9. Virtual Assistant Services: Providing administrative support remotely by handling tasks such as email management, scheduling, travel arrangements, etc.
10.Web Development and Design: Creating and maintaining websites that are visually appealing and functional.
Some top ITES companies in India:
https://khatabook.com/blog/top-ites-companies-in-india/
2. Platform Companies:
These companies create software products that are huge platforms aiding in the development of other software applications/products. Some of these companies also create products in their own platforms. Then vendors with product ideas use this platform to build their products.
Examples are Salesforce, ServiceNow etc., The support extended to vendors to develop the products in their platform is again – legendary!
3. Software development companies
These companies are likely to have a number of full-stack developers or specialists like database admins, python coders etc along with project managers, business analysts and software quality management professionals. The get into the business of developing custom software for companies (sometimes leveraging platforms and open-source software). They may contract other talents needed on a need basis.
There are contracting websites to help such companies such as –
https://www.outsourceaccelerator.com/
Some of the core skills needed in a software development companies are:
1. Technical Skills
Programming Languages: Proficiency in popular languages such as Java, C#, Python, JavaScript, or Swift depending on the target platform and application type. Currently the most popular programming languages are python, javascript, c#, Java etc., This covers the areas including SOLID Principles, 12 factor framework etc.,
Software Architecture & Design: Understanding of software design patterns, modular architecture, and scalable system design to build maintainable and robust applications. This covers the areas including Enterprise Architecture , Enterprise Integration Architecture, Platform Architecture Patterns(Pipes and filters, stacks etc.,), GoF Patterns, Cloud Native Patterns etc.,
Front-End & Back-End Development: For full-stack companies, expertise in both front-end (React, Angular, Vue.js) and back-end (Node.js, .NET, Django) development. are needed. THis differentiation came in late. In the past most of the programmers were full stack developers capable of handling UI/UX all the way through the database layer.
Database Management: Knowledge of relational (SQL) and NoSQL databases plus data modeling and query optimization. Now the stores include NoSQL DBs, Graph Databases etc., (also, please refer to my article - https://www.mayoan.com/technology/03.-offbeat-databases---part-1 )
API Development and Integration: Experience creating and consuming RESTful and GraphQL APIs to allow communication between services and components. Knowledge about Micro Service Architecture is essential.
Cloud Computing & DevOps: Skills with cloud platforms (AWS, Azure, Google Cloud) and DevOps tools (CI/CD pipelines, containerization) to streamline deployment and scalability. Concepts like Infrastructure as Code and right level automation are critical for success in these areas.
Security Best Practices: Awareness of application security, encryption, and secure coding principles to protect user data and maintain trust. This will cover both information security and data security principles. The aim is to secure the data in flight, in store and when in view.
2. Process & Methodological Skills
Agile & Scrum: Familiarity with Agile principles and Scrum frameworks enables iterative development, continuous feedback, and flexibility to changing requirements. Now SAFe framework to cover programmes under scrum is also in vogue. The new generation IT management softwares are quite capable of realizing the demands of the tenets of these frameworks.
Project Management: Efficient planning, resource allocation, tracking progress, and risk management to deliver projects on time and within budget. This function should also collaborate with other frameworks such as ITSM, Enterprise Architecture Frameworks, Scrum/Agile etc.,
Quality Assurance & Testing: Implementation of automated and manual testing (unit, integration, system, and UI tests) to ensure software reliability and performance. But implementing devops at scale will require a lot of attention to test automations and process automations.
Version Control: Expertise with version control systems such as Git for source code management and team collaboration. There are well developed Git based cloud deployed platforms , that are available for free and as enterprise offer such as GitLab and GitHub.
3. Supporting & Interpersonal Skills
Communication: Clear communication across development teams, stakeholders, and clients to ensure alignment of goals and expectations. Communication skills- written and verbal are the most important non technical skill needed for this job.
Problem Solving & Analytical Thinking: Ability to analyze issues, identify root causes, and devise effective, efficient solutions. Standard tools like brain mapping, fish bone diagram, kanbans, flow-charts, process diagrams etc., are essential tools.
Collaboration: Working well in teams to integrate multiple perspectives and expertise into the software product. Collaboration among the developers, program managers, testers, product managers, infosec professionals are key to keep the program in a healthy state.
Adaptability & Learning: Willingness to continuously learn new technologies, adapt to changing environments, and innovate solutions. I cannot lay enough emphasize on the continuous learning principles and adaptations. Like any processes continuous learning and continuous improvement are critical for individuals too.
References:
https://www.indeed.com/career-advice/career-development/software-developer-skills
https://www.geeksforgeeks.org/software-engineering/software-developer-skill-requirements/
https://www.tealhq.com/skills/application-developer
4. Software Product development and services companies
This is as mentioned in the Path A previously – focussed on 1 or limited set of products. Some examples in India are Naukri.com, flkipkart.com etc., This also falls under SaaS.
5. IT Consultancy companies
This is as mentioned in the Path E previously.
6. Mobile App development companies
This company is similar to Software development companies, but they specialize in the business of mobile applications building and maintenance.
7. Mobile App development and services companies
This is similar to point 4 above. But is specially focussed on mobile apps like MyGate, PhonePe app, RedBus mobile app etc.,
8. Product Partners, System Integrators, Software Customization Consultants. They are also related o the terms – Managed Service Providers (MSPs), Digital Transformation Firms, Independent Software Vendors (ISVs).
Choosing the right type of company depends on the complexity of customization, integration needs, and long-term support requirements.
9. Data Management and Analysis Companies
These companies are specialized in data governance, data engineering and analysis for their clients. They sometimes do the end-to-end data management right from extracting and storing data in cloud till submitting reports and then taking care of data archival, retention and obsoletion.
10. Companies specializing in SCADA products and that are focussed on ESG outcomes. This involves fixing IoT sensors and devices on equipments and meters and then consolidating the data in a central place (mentioned as above in point 9) using a SCADA (Supervisory Control and Data Acquisition) platform.
Please refer to the link - https://www.mayoan.com/grc/09.-some-esg-thoughts-valid-in-current-times---part-3-
Hari Om!
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