Home IT news IT Outsourcing Company vs. Product Company: Which to choose?

IT Outsourcing Company vs. Product Company: Which to choose?


IT world is changing every day and countless IT companies are established with each passing day. Therefore, at some point, you have to ask yourself what exactly you want from the job you’re looking for. There are two typical types of IT companies: IT outsourcing company and Product company. Now, let’s discuss the difference between them!

it outsourcing company, product company, it software company, it companies
Which company will you work for?

What are they?

An IT outsourcing company is a firm that provides services to clients and helps them to carry out projects. Their client can be a person or a company or an organization that needs support in all or part of the IT functions in their business. The profits are made from projects that have been carried out for their clients.
Meanwhile a product company focuses on creating some products to promote and sell them on the market. The profits are made when the end users pay for their products.

Three biggest differences between it outsourcing and product company


  • Every IT outsourcing company sets a fixed price for a project (called billable hours). They monetize from the moment their clients discuss them the problems. The team develops a software to give the clients solutions to their problems.
  • In contrast, developers in Product companies have no idea of problems or solutions. They can conduct free trials for free accounts and earn profits from premium users or advertisements.

software product company, adobe products
Adobe is a one of the best-known product company in the world.

Focus on satisfying End-users vs. Clients

  • At IT outsourcing companies, you can improve your products to bring a better experience to the end-users. However, what you should mainly focus is to satisfy your clients. In some cases, this will be significantly different from satisfy the end-users. In other words, the project team may have little or no contact with end-users.
  • However, contact with the end-users is crucial because they’re Product companies’ customers. Every step the team takes and every decision the team makes is aimed at the end-users’ satisfaction.

The task delegated to team member

  • At IT outsourcing companies, each member takes a specialized role and they may support two or three projects at the same time. They hardly have chance to take part in every stage of a software development life cycle (SDLC).
  • If you work at Product companies, you can not only enter every stage of SDLC but you can also get feedback and then improve your products day by day. It means that you wear every hat and work on the same product for a long time.
Now, have you made your decision on which company to work with?
Leave a comment below to let me know.