What is the difference between a Service-based company and a product-based company.

 In the IT industry there are two types of organization :

  1. Service-based company.

  2. Product-based company. 



Every Fresher should know about this difference because if any individual gets a chance to choose between these two types of the organization he/she will easily able to do the same.



Service-based company


If you heard about MNC such as TCS, Wipro, HCL, Tech Mahindra, etc are a service-based company, This company provides service to the client or any other organization.

In a service-based company, Role is not generally specific for example:- if you are hired as fresher in the above service-based company you will not likely get your preferred technology. Your job role depends upon company clients and services.


Product-based company


A big giant like Facebook, google, amazon, NetFlix, etc comes under the product-based company. An organization which has their own product to promote/sell.

In a product-based company, Role and technology are specified. Good salary for fresher as well as an experienced candidate. Sometimes product-based startups provide good salaries plus equity(some share of their company). 


Below Table give a better overview:



Service-based company


Product-based company

2-3 Interview Rounds 

Generally, conduct more interview Round

Low salary as compared to PB

High salary

A little bit of low exposure

High exposure

Inflexible timing

Flexible timing

Continuous interaction with client

Less interaction with client




if you are an experienced guy always go for a product-based company. And if you are a fresher and have an option to choose in between product and service company always go for a product company, you won’t regret your decision in future. And if you are a fresher and have a job offer only from a service company. Try your very best to get the job in a product company but it didn’t get one, no worry just join the service company and keep trying for a job in a product company, and if you got one just join it. And if you don’t get the job in a product company please don’t work in a service company for more than a year. try to get out of there as soon as possible.


If you have questions about how to do this; you can always ask your questions below. 


ALL THE BEST!!!

 


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