There are a lot of companies who need custom software, who have a budget for custom software, but don’t have an internal software team. Often, they’re tempted to hire an entire team to handle their development in house. This can work great in some situations, but it’s not for everyone.
We had some work in the past for a couple of clients that worked in the wine industry. The wineries care about making and selling amazing wine. Why would they want to be in the software business? Typically, what we would do is look at what they want/need and recommend a solution. Other times we will lend ourselves out as contractors. We can also tackle a subset of a large project for a client that can easily be broken down into independent parts. It all depends on what the client needs, and what arrangement works best and makes the most sense for everyone.