What are the types of IT companies?


In one of our previous articles, we talked about the types of IT specialists, and quite a long time ago, at the very beginning of our blog, we wrote a comic article for you about the types of employers.

We all noted that for all this time we have not shared information about the kinds of IT companies. What is the difference between them? What are the advantages of each type of IT company and, most importantly, how to motivate IT specialists to get a job in your company? We will talk about it in this article.

Product-based companies

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Tеch companies include all companies that develop their products. It can be anything: a mobile application, a game, a service, a platform, an antivirus, etc. The main advantage of IT product companies in terms of employment is that they work not for a specific customer, but an end-user.
The feeling of involvement in the creation of useful and necessary products, the ability to bring your "creation" to the ideal, and active teamwork are the things that distinguish product companies from other places of work for IT professionals.
At the same time, working in an IT product company is associated with several disadvantages, the main of them is dependence on the market. If competitors begin to overtake the company in the development, luring away users of the product, or the product itself becomes less in demand due to the emergence of more convenient analogues, the company immediately experiences a crisis, risking facing complete bankruptcy.
Hiring tip
The main benefit of working for a product-based company is the opportunity for a developer to create a really cool and valuable product. Product motivation most often works great, but it's even cooler if you give IT specialists the opportunity to switch between projects, work on different products (if you have several developments), thus saving the specialist from unnecessary routine and the fear of "sliding" into monotonous work.
It is important to note that product companies are also divided into several types: startups, scaleups, and corporations. The main difference is the stage of company development and working conditions for a specialist.
Startups are often associated with risk, instability, and a vague future. Still, several significant advantages of working in startups should be mentioned when looking for IT talents. The most tangible among them is the rapid professional growth.
A large number of diverse tasks that exist in most startups is what really motivates a certain circle of developers to change stable work for employment in a dynamic, unpredictable, and therefore exciting project.
Nevertheless, work in a startup in no case should mean wages below the market average, an unconvincing killer feature, dubious working conditions.
Some IT specialists were ready to turn a blind eye to such features of work in a startup 3-4 years ago. Today, under such conditions, it will be very difficult to find an IT professional.
The main advantage of working in such a company is the preservation of a startup spirit, while in significantly better conditions than in a young project. This is a logical thing to focus on when hiring IT specialists.
The team has already found its product/market fit, perhaps even entered the IPO, but has not yet become a corporation in the full sense.

Nevertheless, realizing that there is no complete stability in such a company, some processes remain not fully rebuilt, and, given the phase of rapid growth, the processing is possible in such a company.
Scaleups
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Scaleups are a transitional stage of a company from a startup to a corporation.
The well-known Google, Facebook, Amazon, Netflix have long been associated with the world's largest giants, being a very attractive place to work for many IT professionals.
Despite the eminence and great desire of many IT specialists to work in such companies, corporations also suffer from a shortage of IT personnel.
The obvious advantages that you should take when hiring new employees are high salary, stability, project scale, well-organized processes, work-life balance.
Corporations
Most often, such advantages significantly outweigh the disadvantages of working in a corporation, among which the key ones are lack of flexibility, a clumsy management system, and difficulties with rapid career growth.
Yet many IT professionals are ready to turn a blind eye to these shortcomings of corporations, trying to realize their potential in such organizations.
The main reason that can stop a specialist from hiring in this company is personal views and the desire to work only in small companies.

Outsourcing IT companies


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IT agencies, unlike product companies, do not work for the market and its needs, but customers, providing software development services for third-party organizations.

On the one hand, working in an agency is very stressful, because instead of creating one product, developers work on several projects at once, and they report not to the market, but the client.

Nevertheless, the era when agencies unquestioningly performed the tasks of customers, not having the right to make changes to the technical task and maintaining a heavy code, is long gone, and today working in an agency is a very exciting and extraordinary activity.
The main advantage that should be referred to when looking for a developer in an agency is the variety and lack of routine. Today an IT specialist may work on creating a marketplace, but tomorrow it may be a mobile application or a game. Such diverse tasks, in addition, develop the hard skills of a specialist, allowing you not to concentrate on any one programming language, motivating you to try different areas of the IT-sphere.

Of course, there will always be a story in agencies when you need to communicate with customers and satisfy their wishes, not always feel involved in the creation of IT products.

These are the disadvantages that should be taken into account from the very beginning of communication with a potential IT employee.
In general, it is not so important what kind of company you work with – a startup, a large product corporation, or an agency. You can find a cool specialist in any organization. The main thing is understanding the market and the needs of the candidate, realizing the fact that recruiting is not magic, and, of course, the willingness to seek help from professionals. If you need help in IT selection, please contact Lucky Hunter. Let us help you with the recruitment of your ideals!
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