What's an IT Company, and Why Your Business Needs an Information Technology Team

According to Statista, IT spending across the globe is set to hit $5.6 trillion by 2025—and it's not hard to see why. Businesses everywhere are pouring resources into digital tools, software platforms, cloud systems, and data security to stay competitive.

But with all this investment in tech, there’s still one big question floating around: what’s an IT company and what does it do for businesses like yours?

This guide clears things up. It breaks down what IT companies do, the day-to-day responsibilities, the value they bring to business operations, and how they differ from software companies.

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What’s an IT company?

An IT company, short for Information Technology company, builds, maintains, and manages the digital infrastructure that powers business operations.

So, what does an IT company do exactly? These companies handle everything from setting up hardware and software to deploying cloud computing systems and safeguarding data.

Their work includes everything tech-related—network security, server configuration, database management, SaaS platforms, and business process automation.

Unlike companies focused purely on products, an IT company provides technology services designed to improve how a business runs. They work within a company to streamline operations, solve business problems, and support long-term goals.

Key responsibilities of an IT company to a business

Still wondering what IT companies do daily? Here's a closer look. 

1. Managing hardware and software assets

One of the most visible roles of an IT company is handling the physical and digital tools a business needs.

This includes deploying computer hardware, managing software licenses, and maintaining compatibility across devices and software. IT companies ensure that every workstation, server, and piece of network infrastructure is secure, functional, and up-to-date.

2. Optimizing business processes through technology

IT companies are instrumental in aligning technology with the core business process. That might include implementing a project management software system, automating data entry tasks, or streamlining internal workflows with custom line-of-business software.

By understanding the flow of data and information within a company, they can suggest solutions that save time, reduce errors, and lower costs.

This is especially important in industries with complex operations—like manufacturing, logistics, or finance—where efficient processes directly impact outcomes.

3. Software development and customization

While not every IT company writes code from scratch, many specialize in software development tailored to specific business needs.

This includes designing management software for internal use, integrating APIs to connect various platforms, or developing new software that gives the business an edge in the market.

Custom software development helps businesses avoid the limitations of off-the-shelf tools.

Whether it’s a dashboard to track performance or a workflow app that matches how teams really work, IT companies play a key role in building what’s needed, when it’s needed.

4. Providing technical support and maintenance

No tech system is flawless. That’s why IT companies offer ongoing technical support, troubleshooting everything from application crashes to connectivity issues. They also handle routine maintenance to prevent problems before they arise, ensuring business continuity.

This includes monitoring systems for potential threats, updating software and firmware, managing user access, and keeping hardware running smoothly.

Quick, reliable tech support is one of the main reasons businesses retain IT providers—it saves time, reduces frustration, and protects business outcomes. That's the answers to the questions what’s an IT company and what does it do.

5. Data storage and database management

Modern businesses rely on massive volumes of electronic data—from customer records and financial transactions to internal files and web analytics. IT companies provide data management solutions that ensure this information is organized, accessible, and secure.

They often manage relational database management systems (RDBMS) like Oracle, PostgreSQL, or MySQL. These systems allow businesses to store, retrieve, and manipulate structured data efficiently.

Whether it’s backing up databases, managing permissions, or optimizing queries, IT companies make sure critical information is protected and usable.

6. Cloud computing and SaaS integration

Cloud computing has transformed how businesses access resources. 

One major part of what IT companies do is help businesses migrate traditional systems to the cloud, deploy software as a service (SaaS) applications, and manage hybrid environments. These solutions are scalable, cost-effective, and reduce the need for in-house infrastructure.

From Google Cloud to Microsoft Azure to IBM Cloud, IT companies assess the best platform for each use case and handle the deployment and maintenance.

They also integrate tools across the tech stack—connecting customer portals, management systems, and collaboration platforms through cloud services.

7. Technology strategy and CIO-level guidance

For many growing businesses, an IT company becomes the de facto Chief Information Officer. They help define a long-term IT strategy, choose the right platforms, and align technology with business opportunities.

Whether it’s deciding which new technologies to adopt or assessing whether existing resources and services meet future demand, IT consultants provide clarity.

They help prioritize investments and avoid costly missteps—especially when new technologies emerge rapidly in the market.

What’s an IT company compared to software companies

While IT companies and software companies often overlap, their core focus differs. Here's a quick breakdown:

• IT companies:
  
  
  • Focus on end-to-end technology services
    
    
  • Install and maintain hardware and software
    
    
  • Provide ongoing maintenance and technical support
    
    
  • Manage networks, cloud infrastructure, and data storage
    
    
  • Tailor solutions for internal business processes
    
    
  • Offer strategic guidance for tech planning
    
• Software companies:
  
  
  • Primarily build and sell software products
    
    
  • Specialize in specific applications or platforms
    
    
  • Focus on software engineering and code development
    
    
  • Deliver updates and patches, but not hands-on support
    
    
  • May or may not offer integration services
    
    
  • Often scale products for mass markets, not individual needs

In short, what is an IT company, and what does it do? It keeps your technology working so your business can keep growing.

8 reasons to outsource your IT 

If you're still asking yourself what does an IT company do and whether it's worth hiring one, here are eight reasons that say yes. 

Reason #1: Solve business problems with technology that works

When internal teams face recurring issues with computer systems, business websites, or software and hardware conflicts, it pulls focus from business goals.

A technology company brings in tools, strategies, and experience to solve those problems efficiently—whether it’s selecting the right database management systems or deploying a scalable management software suite.

From custom line-of-business software to collaboration tools, a trusted IT partner offers more than fixes—they offer a long-term plan.

That includes supporting compute-heavy operations with hardware from vendors like Intel and NVIDIA, or streamlining internal workflows with agile project management software. 

Reason #2: Protect your business data from security threats

IT providers deploy secure technology systems to monitor threats, enforce multi-factor authentication, manage software updates, and protect both data and infrastructure. 

They offer proactive solutions, including encrypted data storage, secure cloud computing environments, and database security configurations. With their help, a business doesn’t just store information—it defends it.

Reason #3: Scale operations without hiring a full internal team

Hiring and managing a full in-house IT department is expensive. Not every company can afford to employ infrastructure engineers, software developers, cloud architects, and security analysts. Outsourcing IT services gives access to a deep bench of talent without the overhead.

An experienced tech company offers a broad range of technology services—helping your business scale its operations with fewer risks.

Whether it’s handling project management software rollouts or overseeing relational database management upgrades, outsourced IT gives access to experienced professionals without long-term contracts or high payroll costs.

Reason #4: Improve collaboration and productivity company-wide

Collaboration software is only as good as its implementation.

An IT company ensures that tools like Microsoft Teams, Google Workspace, or custom-built platforms are integrated seamlessly into your operations. This boosts productivity by helping teams share files, schedule meetings, and manage tasks in real-time.

They also ensure compatibility between various types of software and hardware. For example, integrating Oracle-based systems with existing CRM tools or deploying SaaS tools that streamline internal communications. 

Reason #5: Ensure ongoing maintenance and support

Technology needs constant attention. Without routine maintenance, systems become outdated, vulnerable, and inefficient.

An IT company handles ongoing maintenance—patching security flaws, replacing outdated hardware, and updating software without disrupting operations. They also provide fast, responsive tech support. This is crucial when systems go down or applications crash. 

Reason #6: Leverage artificial intelligence and new technologies

The tech industry is constantly shifting.

New technologies emerge every year—from artificial intelligence tools that predict customer behavior to computational solutions that automate complex data processing. Outsourced IT companies stay on the cutting edge, ensuring their clients don’t fall behind.

Reason #7: Align IT with strategic business goals

Technology without strategy is a wasted investment. IT companies provide CIO-level guidance to ensure your technology aligns with your growth goals.

This includes assessing which applications best support your business outcomes and planning for future expansion.

Reason #8: Gain a competitive advantage with better tools

In competitive markets, the ability to deploy new software, adopt agile practices, or transition to better systems quickly is a huge advantage. IT companies help businesses become more adaptive.

Whether you're building a new business or expanding an existing one, having fast access to tech giants’ platforms—like AWS, Oracle, or IBM—levels the playing field.

With support from an experienced technology company, businesses can run applications more efficiently, respond faster to customer needs, and launch services quicker than competitors relying on outdated infrastructure or internal teams lacking expertise.

How to choose the best IT provider for your business

When evaluating IT providers and understanding what’s an IT company, businesses should look for these criteria:

• Expertise in your industry: Make sure the provider understands the business process, compliance requirements, and operational needs specific to your sector.
  
  
• Scalable services: Choose a company that can grow with you. Look for flexibility in contracts and the ability to add services as needed.
  
  
• Tech partnerships: Providers partnered with Intel, NVIDIA, Oracle, or IBM often have access to better tools and support from these tech giants.
  
  
• Responsiveness: Look at their SLAs for technical support. Fast resolution times are critical.
  
  
• Security protocols: Make sure they offer strong protection for business data, including firewalls, encryption, and cloud security practices.
  
  
• Proven track record: Check if the market shows that the company has delivered consistent results with verifiable case studies or testimonials.
  
  
• Customized solutions: Avoid one-size-fits-all providers. Choose a company known for building custom line-of-business software and tailored systems. 

Remember, understanding what’s an IT company and what does it do helps you pick the right one.

Book your free strategy call today!

Running a business shouldn’t mean juggling IT issues on your own. Now that you know what an IT company is and what IT companies do, you’re in a better position to choose the right technology partner.

With 365 Managed IT, your technology finally supports your goals—not the other way around. Whether you’re launching a new business or upgrading your systems, our team is here to help.

Book your free strategy call now and find out how our IT services can simplify your operations, protect your data, and unlock new business opportunities.

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Frequently asked questions

What is information technology, and how does it help businesses grow?

Information technology refers to the use of hardware and software to manage and process data and information. It's a core part of every business process, helping companies automate tasks, enhance decision-making, and improve service delivery.

What does an IT company do with this technology? They help automate tasks, enhance service delivery, and support smart decision-making—driving business growth from the ground up.

How does NVIDIA support the compute needs of IT companies?

NVIDIA is a key player in the tech industry, offering powerful GPUs that drive high-performance compute workloads.

IT companies use NVIDIA technologies for everything from artificial intelligence to software development, enabling faster data processing and more efficient performance for applications that require significant computational power. 

This is a huge part of what IT companies do when delivering high-performance tech to clients.

What is the role of Oracle and Intel in business technology systems?

Oracle provides enterprise-level database management systems, relational database management, and cloud computing solutions tailored for data-heavy business operations. Meanwhile, Intel powers the backbone of computer systems, as well as the devices and software used by businesses every day.

Together, they form a foundation that supports scalable, secure, and reliable technology systems for companies of all sizes.

What kind of software do tech companies typically develop or manage?

Tech companies develop and manage a wide range of applications—from project management software to custom line-of-business software. This includes management software, collaboration software, customer relationship management tools, and software as a service (SaaS) platforms.

These solutions are designed to solve real-world business problems, improve workflows, and drive better business outcomes. Together, they’re a foundation for what an IT company is and what it does—run reliable, scalable systems.

Why is data management so important within a company?

Effective data management ensures that electronic data is organized, secure, and accessible. Within a company, managing business data properly enables better reporting, reduces errors, and supports smarter decisions.

IT providers implement management systems that structure and protect data, whether stored on-premise or in the cloud computing environment, often using tools from IBM, Oracle, and other tech giants.

How does software engineering support new business development?

Software engineering allows businesses to build new software that aligns with their specific business goals and opens the door for new business models.

Whether creating APIs (application programming interfaces) to connect platforms or designing internal tools for daily operations, software engineering helps companies collaborate, scale, and innovate.

It's also key when deploying and maintaining modern software solutions that run smoothly across various platforms. This development support reflects what IT companies do for growth-minded organizations.

What are the advantages of outsourcing IT for small to medium types of companies?

Outsourcing IT gives types of companies access to advanced technology services without the cost of building internal departments.

A technology company can provide everything from technical support and ongoing maintenance to using the software effectively and managing company websites. 

Outsourced IT providers are often companies known for their ability to adapt quickly. As the market shows, the company that focuses on performance and support often effectively pays hosts 86, meaning their services are both reliable and valuable.