Home >Types of Technology Companies

Types of Technology Companies

The terms IT, ITES, BPO and Software are used so flippantly these days that it is easy to mistake one type of company for the other or treat IT as a big jump from where one can choose careers. In the January issue, we saw the different positions that one can expect in an IT company as an MBA. This time around, let's take a walk around the various flavours of technology companies that are available - and there are many of these.

IT services

When most people talk about IT, they talk about the IT services industry. That list includes the top tier companies like TCS, Infosys and Wipro and several other smaller companies. These companies are primarily engaged in the work of development, maintenance or testing (or a combination of these) software for their clients. These companies are split into verticals or horizontals. Cutting through the jargon, what that means is that there are smaller units within each of these companies that service various lines of businesses. Retail, for instance, would mean that the business unit supports the likes of Wal-Mart, Tesco and the like. Aviation, for instance, would mean they work with the likes of Airbus and Boeing. Telecom would mean Nortel, Cisco and Lucent. Horizontals are the business units that can work across the verticals. For example, testing is usually a horizontal, which means that the testing department does work for any of the above mentioned business units. Working in a "vertical" means focussed work on a particular domain while working on different types of projects (development, maintenance etc.) from an MBA standpoint. Working in a "horizontal" means expertise across domains but with restricted exposure outside the function (testing, for instance).

The IT services industry mentioned above can offer a wide range of exposure across multiple domains. The opportunities could vary from Application Development, Application Maintenance, Infrastructure, Networks and Data Maintenance. Combined with onsite opportunities, they offer aspirants a chance to manage projects, interact with clients and be a part of multi-cultural teams.

There are many tier two companies in the IT services world that offer opportunities that are tougher to get in a top tier firm. Business development is one such area. It is tough to break into business development or a strategic role in many top tier firms, but it is possible to do so in a smaller firm which offers its own challenges.

Captives

The other group of companies, essentially within the ITES umbrella, is the captives. A Goldman Sachs or a Tesco centre in India is the perfect example of a captive. Captives work only for their mother company and rarely handle work outside of the mother company. Captives (since they are relatively new, except GE) offer the excitement of a start up with the stability of the big firms. They also pay better on a relative scale. Captives are well-suited for those who want to work in various areas within a particular domain. Captives also offer experience in areas like vendor management, BPO teams, setting up processes which are not easy to get in conventional IT service firms.

Consulting firms

Consulting firms are the likes of companies such as CGEY, KPMG and Accenture. Openings here range from the high-end functional and business consulting work (tough to get) to the technical work (relatively easier to get). Since the offshore wings are present in India, the technical groups have a greater presence here. In terms of work, they are not very different from service industries, except that consulting firms are typically not into piecemeal executions. They usually support a development end to end. Work here, on an average, may be slightly higher end work than in the service firms, but this is not a given.

Product companies

Product companies are companies that develop a product. SAP, Oracle are examples of such firms. Maintaining a product means maintaining different versions of the product for different global markets. It also requires keeping the product abreast of any new changes in any of the markets; at times, it could also involve future proofing of the product, identifying trends in the market and designing newer versions of the product. Depending on the product, whether it is a one-size-fits-all or one that has multiple versions for different markets, the challenges would be different. SAP and Oracle are Enterprise Application products but they are, by no means, the only companies in product. Companies like Macromedia or Adobe or Pramati are also product companies and challenges here vary depending on the product and the function one is in (product development, research, maintenance, support).

Hardware companies

Apart from the software companies, there are hardware companies like Intel, Samsung and others which, by a broad definition, are also into technology, though of a specialised kind. Openings in this kind of firms are more in the marketing and sales fields and usually restricted to India. Technology openings in these firms are fairly specialised.

Companies that use technology to drive their main business

Companies like Amazon or an e-bay would fall in this category. These companies are into their own businesses (Online shopping, online auctions), but their technology drives them. They use the product as a source of revenue for themselves and less as a tool to be sold in the market. Working with companies like these would mean tweaking the product or coming up with newer versions, finding out what the customers need or trying to fulfill an unstated need (Is the site available on a cell phone, and so on) or outthinking the competition.

At another level, every company for whom IT is not a main business would fall within this category.

Start-ups

A start up is a term loosely used in the corporate world. Start-ups, technically, are companies that are in the venture capital funded stage. They are experimenting with their product/service at a beta stage before a full-fledged launch. Start-ups set up shop almost simultaneously in India and the US. Working with a start-up is almost like working in one's own business. Processes have to be set up, marketing will be a challenge, the business has to quickly move out of this incubation stage and become self-sustaining - working in a start-up can be an exciting experience in itself.

Other types

Not every company serves the mass market. Start-ups also fall in this category. There are companies which serve niche markets like aviation companies, there are companies which work within embedded systems, companies that work exclusively for governments, these that work exclusively in a particular domain or technology and so on. Companies that deliver solutions in areas like security, anti virus, life sciences also form part of this niche.
As one can see, the options available are aplenty. More than being carried away by the brand value that a company has, it makes sense to focus on the roles that would excite us the most. This initial bit of planning will help us chart our career paths such that our passion for our work will only increase as the years roll by.