Types of Software Development Services: A Complete Overview

And while some companies may prefer to keep their software development in-house, others recognise the benefits of working with an experienced software development provider and opt for an onshore, offshore or nearshore software development team. Let's take a quick look at what it is:

• Onshore software development entails a customer and development team located in the same country or region.

• Offshore software development assumes the client and team are in different countries and time zones.
• Nearshore software development implies that the customer and team of software developers are located in a nearby country, typically in the same time zone or within a few hours of time difference.

If you are interested in learning more about this topic, we have a number of articles on the subject:

• Offshore vs Nearshore Outsourcing: What’s Best for Your Business?
• Five Reasons to Consider Nearshore Software Outsourcing

• How to Choose a Nearshore Software Development Company

Undoubtedly, software development services, whether provided in-house or outsourced, can be hugely beneficial for businesses. By streamlining processes, automating tasks and improving efficiency, they can save companies a lot of money on labour costs. What's more, customised applications or bespoke solutions developed from scratch can help businesses meet their specific needs perfectly – whether in terms of functionality or scalability.

13 different types of software development services

Software development services can generally be divided into two categories custom-tailored to specific client requirements and readily available code for purchase. Custom software development may include some off-the-shelf components and libraries, which, when combined, create something innovative and new.

However, there are many more types than just these two; software development is a broad field encompassing many software solutions. Let's look at some of the most common types of software development and their key features.

1. Custom software development

Custom software development allows companies to ensure that their software solutions meet their needs and deliver the best results, whether by introducing automation into their working processes or validating and developing an idea for a new product that will give them a competitive edge in the market.

Unlike off-the-shelf software, which can only handle specific standard processes, custom software development covers a wide range of features that can assist companies in meeting requirements. Developing mobile apps built to offer a responsive design which off-the-shelf software does not fully support is an example of the type of service that can be used to build a custom product. Key benefits of custom development include:

• One of the benefits of custom software is that by matching the solution to the requirements, a development company can easily integrate it with business processes, making it much easier to scale up as the company grows.
• Another significant benefit of custom software development is that it is more cost-effective over time. Although the initial investment may be higher than purchasing off-the-shelf software, you will save money in the long run on things like monthly or annual subscription fees. Additionally, tailor-made software solutions are often more likely to give you a greater return on your investment as time goes by.
• With custom software development, you get round-the-clock support and security against outside threats - making it a smarter investment for businesses than opting for off-the-shelf software.

If you need more information about custom software development and read some success stories, check out our blog: Why Choose Custom Software Development?

2. Web development

There are about 2 billion websites in the world right now. Creating a web page is relatively easy, but it can be hard to make one outstanding enough to get users to take the desired action. This is why businesses turn to professional development companies.

Web development services contain the full range of activities necessary to build a web solution, be it a simple website or a complex, unique solution. Web development includes everything from creating the code to hosting, optimising and maintaining web pages.

3. Mobile application development

As the term implies, mobile application development includes developing software solutions for smartphones and tablets. The process generally consists of creating a mobile app for each operating system—the most common are iOS and Android—that the application will support.

From a business standpoint, mobile application development is often seen as a way to reach new customers or markets. For example, mobile apps can be used by retailers to provide customers with a better version of the brand's website and improve the in-store shopping experience.

4. Cloud software development

The process of developing software applications that are designed to run in the cloud is known as cloud software development. It involves using cloud computing services and platforms to develop, test and manage software applications.

5. Artificial intelligence and Machine Learning

Creating software solutions that incorporate artificial intelligence (AI) and machine learning (ML) algorithms anticipates developing or improving applications to output AI-driven analytics results and incite certain activities based on them. These AI features enable companies to automate operations, personalise services, and acquire insights to make better business decisions.

Examples of software with AI and ML capabilities encompass chatbots, search engines, automated document production tools and more. We have several articles on how solutions powered by artificial intelligence and machine learning can be helpful in various industries. Here are some of the articles in case you missed them:

• Technology-Enabled Dynamic Pricing Strategy and Its Role in E-Commerce
• Predictive Emissions Monitoring System: Elevating Emission Analytics with Machine Learning

6. System integration

System integration is a way to connect different computer systems or parts of a system to work together seamlessly or to give a system the functionality of another. The goals of systems integration include enhancing the performance and quality of products as well as cutting down on response times and operational expenses.

Three main methods of system integration:

• Horizontal integration connects systems through a specialised subsystem dedicated to communication between other subsystems.
• Vertical integration connects subsystems based on their function by creating functional entities called silos.
• Star integration , also known as spaghetti integration, connects each system to all the other subsystems.

7. Maintenance and support

Software development maintenance and support play a vital role in keeping existing applications and systems running optimally. It includes ongoing technical support, bug fixes, code refactoring, performance improvements, security patches, and other enhancements to ensure the solution is always up-to-date.

8. DevOps

DevOps is a methodology that combines software development (Dev) and IT operations (Ops). DevOps aims to shorten the systems development life cycle (SDLC) by implementing processes and technologies such as virtualization and containerization while delivering features, fixes, and updates frequently in close alignment with business objectives.

If you are interested in learning more about DevOps, read our article: GitOps vs DevOps – What’s the difference?

9. Cybersecurity software

Cybersecurity software development services involve designing and implementing systems that protect data and networks from malicious cyberattacks. These services include designing firewalls, antivirus programs, encryption algorithms, intrusion detection systems, authentication protocols and other security measures. They also involve developing policies and procedures for monitoring system access, responding to potential threats and other cybersecurity-related activities. Additionally, these services may include conducting vulnerability assessments, compliance audits and risk management strategies.

10. E-commerce software development

E-commerce software development creates platforms like websites and web or mobile applications that allow businesses to sell products and services online. This type of software typically includes features such as customer relationship management, payment processing, inventory management and order fulfilment.

By utilizing e-commerce software, retail companies can streamline their operations and make their online presence more efficient, effective and secure. It also provides customers an easier way to purchase items by allowing them to shop from anywhere, anytime.

11. Database development

Database development is a service that specialises in creating and maintaining database applications for efficient data storage and recovery. Key database development services include:

• Creating a custom database
• Designing a database
• Integrating data
• Migrating a database.

12. Embedded systems development

Embedded software development is designed to run on specific hardware, such as microcontrollers, embedded processors, and other types of specialized hardware. It involves creating a system interacting with the hardware to perform various tasks. Embedded software typically interacts with sensors, displays, motors, and other components to control multiple functions within an electronic device.

People often think of the Internet of Things (IoT) technology when it comes to embedded systems. In fact, most technologies outside of computers probably use embedded systems as well - things like contemporary vehicles, smartwatches, and even manufacturing machinery all rely on them. Here are several interesting articles describing embedded systems throughout industries:

• IoT Energy Management Systems: Futureproofing the Energy Market
• Wearable Technology in Healthcare: Key Uses and Benefits
• IoT and Payments: Will Touchless Connected Experiences Become the New Normal?

13. Enterprise software development

Enterprise software development covers developing software applications and systems for large organisations to help streamline processes, increase efficiency, and improve productivity. It typically includes enterprise application planning, architecture design, UX/UI design, app development, testing and QA, enterprise software and user support, legacy enterprise software modernisation, and enterprise app integration.

Exploring industry-specific software development

In this section, we will explore some of the most popular industry-specific software solutions tailored to meet the unique needs of different sectors.

Healthcare industry

The healthcare industry is one of the world's most important and rapidly evolving sectors. Healthcare software development plays a key role in this evolution, creating new solutions that can help streamline processes, improve patient outcomes, and enable healthcare providers to offer better care.

1. Electronic Health Records software development

Electronic Health Records (EHR) software stores, manages, and analyses patients' medical records. With the help of EHR software, healthcare professionals can seamlessly access a patient's complete medical history in one secure location.

Meanwhile, such software optimises administrative processes; healthcare workers can also use the data available to give the proper treatment and even improve the overall quality of medical care.

2. Telemedicine software development

The development of telemedicine software in response to the COVID-19 pandemic has resulted in remote healthcare services such as video conferencing, diagnostics, medical history tracking and patient monitoring. These solutions provide physicians access to patients from any location, allowing them to diagnose and treat illnesses or injuries without requiring an in-person visit.

Want to learn more about telemedicine and telehealth software? Check out our blog post: Telemedicine vs Telehealth: Rethinking Healthcare Delivery Beyond the Pandemic

3. Healthcare analytics software development

Healthcare analytics software development is the process of designing, coding, and testing computer programs used to analyse patients' data to improve healthcare outcomes. This type of healthcare software development allows medical professionals to identify patterns in their patients' medical history quickly, track changes, generate reports on various health metrics and create tailored treatment plans.

Financial industry

The financial industry is another sector that has seen significant investments in software development. According to Statista, investments in fintech companies globally have reached $164.1 billion in 2022.

1. Banking software development 

Banking software development is crucial for managing modern banking activities such as online banking, loan processing, customer service, and account management. Here are a few articles describing how fintech has revolutionised the banking sector:

• How to Kick-Start Digital Transformation in Banking
• Personalized Banking: How Technology Enables Customer-centric Finance

Banking software development exists to serve banks by delivering the means to effectively and safely administer customer accounts and transactions. Beyond that, it can also be used for back-end tasks such as financial reporting, portfolio management, and fraud detection.

2. Trading software development

Developing trading software can streamline buying and selling financial instruments like stocks, bonds and currencies. It can also enable traders to analyse markets, monitor positions and carry out trades. Individual investors and major financial organisations could use such software to make more informed choices about investments.

3. Payment processing software development 

Payment processing software is an essential part of modern business. It allows companies to accept customer payments, track transactions, and more. If you're an online retailer or any business that accepts payments other than cash, then payment processing software could hugely benefit you. With payment processing software, companies can run more smoothly and efficiently while keeping their customers' information safe and secure.

Logistics industry

1. Supply chain management software development

A supply chain management software is an essential tool for any modern business that produces physical goods. By coordinating all aspects of the production process, from raw materials procurement to finished product delivery, a SCM system can help streamline operations and improve efficiency.

2. Fleet management software development

Fleet management software is essential for businesses to track and manage their vehicles efficiently. It provides a central platform where companies can access all the information about the fleet in one place. It includes data on speed, temperature, fuel level, door opening, geographical location, route direction etc. The system uses GPS technology and sensors to collect this information from devices installed on each vehicle. It means that one can monitor all their vehicles' progress in real-time and ensure they are being driven safely and effectively.

3. Warehouse management software development

Warehouse management software is an invaluable technology solution that automates, optimizes and supports supply chain management. It plays a crucial role in your enterprise's supply chain management by automatically processing order fulfilment operations from handling raw materials to shipping final goods.

Key takeaways

Software development services are a powerful tool for businesses to ensure that their technology is up-to-date and secure. There are many different types of software development, from custom software to cloud and e-commerce software, each with its unique benefits.

Additionally, a wide range of industry-specific software solutions can help businesses reach their goals faster and more efficiently. Whatever your business needs, there is a software development service that can help you achieve your goals.