The "Software Consultant" is hired as a contractor for a specified period of time and for a very specific task/role/project whereas the "Software Developer" (who is not a contractor or consultant) is a full-time staff member on salary, and may have multiple roles/projects within the company.

It is important to distinguish software consulting from other similar service offerings like contract programmers, or staffing agencies that involve software development resources. There are several key factors that differentiate the software consulting firm.

The best software consulting firms provide higher degrees of industry focus. For example, they may specialize in solutions for the Manufacturing industry, or the Medical services industry. Industry expertise brings additional value to the customer, in that there is less ramp-up on the business problem. Also, industry expertise provides some perspective on your problem, often from similar engagements with peer-level client firms from the same industry. The most skilled software consultants bring to the table a technical mastery that can be applied in the client’s business problem domain.