Types of software development services: A complete overview 

This is a time when it is impossible for businesses to remain competitive and successful without software development services. They solve the problems and create opportunities for companies of various sizes across industries. If we look at the statistics, the Software market is expected to witness a remarkable growth trajectory. Moreover, software development remains the fastest-growing sector worldwide. Here’s a bit more statistical insight: 

• Enterprise software development has taken the lion’s share — 84.7%.  
• The Software as a Service market has an estimated market value of $10 trillion by 2030. Over the last seven years, this industry has grown by up to 500%. 
• Outsourcing is the most popular business strategy for organizations to develop software, as acknowledged by one in four respondents. 
• The US Bureau of Labor Statistics report states that software developers’ employment is projected to grow 25% from 2021 to 2031. This percentage is relatively faster than the average for all occupations. 
• The compound annual growth rate (CAGR) of software revenue is 5.27%, making it an $858.10 billion market by 2028. 

What are software development services? 

Software development services is an umbrella term for a set of activities that result in delivering functional software. It is a complex process that encompasses many smaller components — business analysis, design, development, testing, deployment, and post-release maintenance. The number and sequence of these components can vary depending on the business’s needs, the collaboration model, and the methodology used by the software development company. 

Below, we’ll look at these steps in more detail. 

Typical phases in the software development lifecycle 

Requirement analysis 

This is the initial and vital stage of the Software Development Lifecycle (SDLC). It includes a detailed analysis of the market and the customer’s requirements, and results in a clear picture of what the software development team will work on — a Software Requirements Specification (SRS) document. It will serve as a guide and beacon throughout the development process. 

Key activities: 

• Identifying stakeholders and their needs 
• Conducting feasibility studies 
• Establishing project goals and criteria 
• Gathering and documenting user requirements 

Design 

As the next step, the design team develops a prototype or proof-of-concept, based on the architecture described in the SRS. Later, these products are presented to the stakeholders to demonstrate the key functionality of the future software, get initial feedback, make refinements, and add additional features. 

Key activities: 

• Developing system architecture and modules 
• Designing data models and databases 
• Creating UI mockups and wireframes 
• Specifying technical conditions 

Development and testing 

Once the design is defined, software developers can take on its implementation. In our company, this process is combined with manual and automated testing to rapidly spot bugs and ensure flawless software operation. This approach also helps save time and resources by avoiding rollbacks or redoing large chunks of work. 

Key activities: 

• Integrating software modules and components 
• Creating technical documentation 
• Designing detailed test cases 
• Running different types of testing 
• Implementing features and functionalities 

Deployment 

Deployment or production time comes when the software is written, tested, and approved. This phase includes several components, such as user training, tracking, and analyzing performance and quick resolution of problems that arise. 

Key activities: 

• Configuring servers and environments 
• Performing data migration, if necessary 
• Training users and providing documentation 
• Preparing deployment packages and release notes 

Evaluation and maintenance 

Once the software is operational, it requires ongoing evaluation, with the SRS document serving as a key reference. Post-production maintenance involves resolving bugs, implementing updates to enhance performance, adding new features, and performing other activities aimed at ensuring the software remains relevant and competitive in the market. 

Key activities: 

• Providing ongoing support to users 
• Addressing support tickets 
• Making modifications based on user feedback 
• Monitoring system performance and security 

12 different types of software development services 

Software development is an incredibly dynamic field, with trends changing yearly or even more frequently. Some remain consistently in demand, such as web or mobile development, while others, like AI and ML, emerge on the market and conquer it year after year. Below, we will discuss 12 different types of software development services that will be in demand throughout 2025. 

Custom software development 

Custom software development refers to creating bespoke software tailored specifically to the needs of a particular organization. This is an ideal option for cases where a client requires specific functionality to meet the needs of a particular audience. This method can secure a place in a highly competitive market, which one-size-fits-all software can’t achieve. 

HTML, CSS, JavaScript, Java, and PHP are the primary programming languages for custom software development. 

Web development 

Web development refers to creating web-based platforms, such as websites, web apps, and web portals, that work in browsers. The process includes web design, web publishing, web programming, and database management. 

Fundamental technologies here include HTML, CSS, and JavaScript. In addition, web developers use various frameworks and libraries to improve database management, optimize, and generally simplify and speed up the development process. 

Mobile application development 

This is a somewhat newer service in software development compared to the two described above, but it is indispensable for businesses today. Here, we talk about creating software that will work on mobile devices — smartphones and tablets. 

This service includes two subservices — Native app development for individual platforms like iOS and Android, and cross-platform development for applications that will work on multiple platforms. Developers use React Native and Flutter for the latter. 

Cloud software development 

This is a separate chapter in software development, and it relates to creating programs that will run in a cloud environment. It applies to cases where businesses do not use local servers to store data but instead use the services of cloud service providers — AWS, Azure, and GCP. 

Cloud software development brings numerous advantages to businesses, starting with improving scalability, flexibility, cost-effectiveness, and enhancing collaboration. This applies to both creating software from scratch and adding new functionality to existing programs. 

Artificial Intelligence and Machine Learning 

This is a service for which demand is growing steadily at an incredible 40% per year, and this demand is unlikely to decrease. Artificial Intelligence and Machine Learning find applications in practically all areas — analyzing data, systematizing it, creating reports, assisting in decision-making, recognizing faces, and generating content. AI handles long-term and repetitive tasks. 

Chatbots, Robotic Process Automation (RPA) software, predictive analytics systems are just a few of the AI/ML services we offer. 

System Integration 

System integration solutions involve combining virtual (software applications, cloud services, and databases) and physical (servers, networks, and hardware) components of a company’s IT environment into a single system. The primary goal of these services is to achieve connectivity that allows overcoming any hardware and software incompatibilities, eliminating downtime. 

Types of system integration services include Enterprise Application Integration (EAI), Cloud Integration, Business Process Integration (BPI), Legacy System Integration, Service-Oriented Architecture (SOA), System-to-System integration, and others. 

Maintenance and support 

Maintenance and support serve like health checks for software to ensure it stays functional, up-to-date, and secure. It is an ongoing process necessary to ensure stable software performance, which directly benefits businesses and users. Moreover, it is essential for security; grim statistics show that approximately 30,000 websites are hacked daily worldwide. To ensure yours doesn’t make the list, you must guarantee that your software has no vulnerabilities and meets the latest security requirements. 

To confirm the critical importance of this service, let’s look at the growth rate of its demand. The global maintenance, repair, and operations market was valued at around $616.01 billion in 2020 and is projected to grow to $701.3 billion by 2026, with a Compound Annual Growth Rate (CAGR) of about 2.19%. 

DevOps 

DevOps is a set of practices aimed at ensuring the fastest possible development of software that is highly efficient and meets client requirements. DevOps engineers adhere to Agile principles, which are also applied to the testing process. 

Highly skilled DevOps engineers possess a wide range of skills, such as programming, integration, scripting, QA testing, and more. They also need to blend theory and practice to support and collaborate with the rest of the team, which may include software developers and QA professionals. 

Cybersecurity software 

To protect against cyber threats, one must think like a cybercriminal. This is why security system developers are well-versed in the methods, pathways, and technologies used by cybercriminals and fraudsters. This service and cybersecurity specialists are consistently in high demand, and this will not change for sure, as data security remains a top priority for any business. 

E-commerce software development 

The e-commerce sector experienced a significant boom during the COVID lockdown period. Businesses, striving to stay afloat and survive, transitioned en masse to online platforms, and for most, this brought unprecedented and unexpected success. For example, Amazon reported a 26% increase in net sales during the first quarter of 2020. 

E-commerce software development services include a range of offerings such as Magento development, an open-source e-commerce platform written in PHP, and the creation of responsive shopping websites. These websites enable customers to easily order products or services online using payment methods like PayPal or e-wallets. They also provide tools for sellers to manage stocks, track sales, and promptly receive feedback from buyers. 

Database development 

Selecting the right database is as critical as designing robust application logic. And database management is designed to store, process, and structure data and is the backbone of backend development services. 

Traditionally, database developers use a variety of Database Management Systems (DBMS) to implement and manage databases. Each DBMS offers different features, data models, and query languages to choose the most appropriate solution for specific requirements. However, times are changing; we have already seen the emergence of AI-driven capabilities in databases. Oracle, for example, has introduced AI-assisted indexing, automated performance tuning, and anomaly detection features.  

In 2025, this trend will advance further with the widespread adoption of large language models (LLMs) across various database platforms. This only highlights the demand for skilled, willing-to-learn database developers, able to use these changes in the business favour. 

Embedded systems development 

Embedded systems development services involve designing, building, testing, implementing, and maintaining embedded software and hardware. This can include various services such as software development, hardware design, system integration, testing and validation, and maintenance and support. 

The development of unique embedded systems contributes to improving productivity, strengthening competitiveness, and ensuring compliance with regulatory and security standards. 

Exploring industry-specific software development 

Now that we know the types of software development services, we can take a closer look at how software solutions are applied across industries. 

Healthcare industry 

The healthtech industry these days is characterized by two main indicators: it is developing at an incredibly rapid pace, and it has a very low tolerance for errors. Data processing, patient management, appointment scheduling, health and fitness monitoring, and even life support are the responsibilities that software now shoulders.  

Among the areas that continue to see consistently high demand are telemedicine and health monitoring apps. Health monitoring solutions store, process, and analyze large volumes of data about human vital signs, to assist users (individuals or medical professionals) in maintaining health conditions and preventing complications. This category also includes fitness trackers, which monitor data such as breathing, heart rate, and blood oxygen levels. 

Telemedicine, or telehealth, is a field that soared to unprecedented heights during the COVID-19 pandemic and has not lost its momentum since. It remains particularly beneficial for people with limited mobility or those living far from hospitals. These systems store patient data, including previous visits and prescriptions, allowing for comprehensive and high-quality medical consultations. 

Biotechnology industry 

Biotech is a rapidly growing field where technology and science converge to explore, study, and improve the lives of humans, animals, and living organisms in general. Biotech software comprises solutions like imaging, bioinformatics, laboratory management software, diagnostics and decision-making systems, software-hardware communication, and more. 

Two trends that will definitely define the biotech field in the near future are AI/ML and the Internet of Things (IoT). Artificial Intelligence and Machine Learning enable biotechnology companies to simulate and predict the outcomes of research, enhance data quality, extract information, and ensure scalability. Predictive analytics based on AI and ML can assist in faster and non-invasive diagnosis and treatment of various diseases, drug discovery, and lab test analysis. 

The Internet of Things technology makes a significant impact on biotech by providing laboratories and research facilities with smart sensors and connected devices to collect data and transfer it to Electronic Health Record (EHR) or Enterprise Resource Planning (ERP) systems, and then to the electronic data capture (EDC) for further analysis and storage. 

Oil and gas 

The oil and gas software development sector is one of the fastest growing, with the market value of automation technology projected to reach $42 billion by 2030. This growth is fueled by the need to process massive volumes of data essential for informed decision-making. To achieve this, while adhering to strict safety regulations, the industry increasingly relies on cutting-edge services like AI/ML software development and the Internet of Things. 

Artificial Intelligence plays a pivotal role in assessing reservoir values and tailoring drilling strategies based on geological data. AI also evaluates the risks associated with individual wells and enhances site selection for oil drilling by analyzing seismic data and delivering actionable risk assessments. Historical data combined with AI insights enables companies to accurately estimate oil reserves, while predictive maintenance is improved by analyzing offshore drilling equipment for potential failures. 

Machine Learning provides the oil and gas sector with valuable insights from operational data. These insights help enhance efficiency and support data-driven decision-making, paving the way for optimized processes and reduced costs. 

In 2025, IoT technology is expected to become even more prevalent in the industry. IoT devices will allow real-time monitoring of pumps, pipes, and filters, minimizing the risk of costly leaks and eliminating the need for manual system checks, and personnel will be deployed in cases of anomalies. 

Travel and hospitality 

Travel and hospitality software development has recovered from the COVID era and is now experiencing another surge. However, the lockdown introduced changes in approaches and trends, which were further amplified by advancements in artificial intelligence. For instance, contactless operations have become an incredibly convenient option for travelers. 

Guests still prefer contactless check-ins and mobile payments to minimize physical interactions. It’s not just about safety; it also enhances convenience for travelers who seek quick and efficient service. Over 60% of hospitality executives believe that fully contactless experiences will become standard within the next few years. As a result, hotels are investing in mobile apps that facilitate these services, allowing guests to manage their stay from their smartphones. 

Therefore, designing mobile apps that support contactless services is crucial. Features such as mobile check-in/check-out, digital room keys, and instant messaging for service requests can significantly improve the guest experience. 

Another trend in hospitality is and will continue to be sustainable technology. Businesses are adopting eco-friendly practices such as using renewable energy sources, implementing waste reduction strategies, and offering carbon offset programs. Travelers are now more inclined to choose companies that prioritize sustainability in their operations.  

Key takeaways 

There are different types of software development services, starting from custom software development and going further to cloud, mobile, and e-commerce software. Each has its benefits and application areas, but it goes without saying that for businesses aiming to stay up-to-date, secure, and competitive, they are a powerful and essential tool. 

This is especially relevant for businesses operating in specific industries that require either high precision, strict security compliance, or are characterized by intense competition. It may sound somewhat confident, but in reality — no matter what your business needs are, they can be met by one software development service or another.