Service vs product based companies

Product based companies compete on technology using engineering talent to win. They build once and sell to many with minimal difference While Service companies build a new one each time depending on customer. Here are a list of differences between them…


Service based companies

  • They make software as per the requirement of client.
  • Dynamic in nature
  • Need to be a MultiTasker .
  • Selection procedure: conducts simple interview rounds like 3 to 4 rounds and are mostly based on technology knowledge and coding for which they are hiring
  • They will not provide justifications for rejection or selection.
  • Learning: no learning in the projects. It will make you jack of all master of none.
  •  large team size leading to high politics high work pressure and job uncertainty
  • Less salary then product based companies
  • Very inflexible timings, you have to complete the fixed hours (8-9 hrs) in the office before leaving.
  • TCS, Infosys ,Accenture, Cognizant etc.  Are service based companies
  • They train the candidates on the technology as per the requirement
  • They are generally mass recruiters


Product based companies

  • They have already made their product, just have to sell in market .
  • Build one time and earn money from websites and much more
  • Have their own development team
  • Specific rules and Technology, need not to be multitasking but be good in a respective field.
  • Selection procedure: conducts more interview rounds and are mostly based on data structure and algorithm analysis
  • They will provide complete justification for rejection or selection with areas of improvement.
  • Learning here is always good
  • Teams are small so the interaction is very good, leading to less politics and job certainty is high
  • They pay you high salary
  • Flexible timings
  • Google, Microsoft ,Adobe ,Oracle, Paytm, Zomato etc. Are product based companies.
  • They do not provide extra training to candidates.
  • If you are in a private college,you have to work hard to get into it.

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