Differences between Product based and service based company

If you are working in the IT industry anywhere in the world then, you must have heard about the terms product based, service based companies, which one is the best and a whole lot other point of view . But the thing is that though all the information been provided is correct, you needs to find which one would be better for ‘You’ because everyone’s priority at every stage of life is different as for somebody work satisfaction, for some distance, for some money etc.. So, I am here to discuss all the factor in depth so that spending these 2-3 minutes you will be able to take better decision. So Let's get starting into it...

differences between product based and service based company

What are Product Based and Service based Companies and what are their differences?

Product Based Companies have their own product which could be anything like software or website or application. They keep on working and maintaining their products for ages according to the needs of people as time changes. Here Product Analyst will do market research  and collect the requirement and then based on market research data they will develop their product. Product Based Companies are handled by an idea to help different customers. Here the main focus is what should i do to make my product better. 

For an example Amazon. When Amazon launched way back in 1995, the company's whole purpose was selling book. But Today, it's a mega-company that sells hundreds of millions of products, makes its own tablets and phones.

Service Based Companies on the other hand  directly deals with a client and build a

software/app/website for them. Here client gives the requirement, Business Analyst will be present and he will collect the requirement from client and based on the requirement they will develop the software or website or application. Here company will develop and test the software and give it back to client. Here company can not sell same software to different client.

For an example Bank owner comes up to Infosys to build a banking website for them and Infosys design, develop the site for them. Then, Infosys will also provide service to them.

Features of Product Based and Service Based Companies

Product Based Company:

1. Job satisfaction will be more as mind will be less stressful.
2. Pressure is less compare to service based.
3. Cool and healthy environment.
4. Thoughts flow will be better . Help each and every individual to think out of the box.
5. Person need not be multitasker. Instead of that be good at its respective field.

Service Based Company:

1. Here the pressure of work  is very high.
2. Work should be Completed within deadline is most.
3. Person should be multitasker.
4. Less scope of R&D. But would be able to learn new things a lot.

 Salary in Product Based and Service Based Companies

Freshers: As fresher in the IT industry product based companies surely offer higher 
package than service based For an example any startup or MNC service based like Infosys, TCS offer around 3.25–4 lpa to a fresher where a product based company like Adobe, 
Lenskart, Amazon and Google have starting package from 10 lpa and goes till 25 lpa average.

Experienced: With 4+ years experience into the IT industry most of them wants to join product based companies for better package. So, the service based employees get a management position in these big tech companies to earn from 10 lpa to upto 25 lpa. But in service based company the maximum growth is upto 12 lpa.

Growth and Work Satisfaction in Product and Service Based Companies

Service Based Companies: In Service based smaller or startup companies you will get the maximum amount of satisfaction in terms of work because you have to deal directly with the client and also you have to work on more number of modules and you will grow more. There will be just 2–3 people in entire software development process in all time so you will know how all the components work, design them and have better work satisfaction. Also, it is easier for you to switch company later in service based as now you have knowledge.

Product Based Companies: In Product Based Companies you will work on one single module of the software. Here you dive deep into the depth of optimization and how things work, but it is tough to find similar domain in any other company afterwards. Also, the service based people would be growing from 2lpa to 25 lpa and you might get stuck into see 
yourself at 25 lpa throughout.

List of Product Based And Service Based Companies in world

You needs to know that every IT company is actually both service based and product based because every startup also has their own product and also the big MNCs but depending on which is the major source of revenue we have listed some product and service based companies in entire world
Service Based Companies:
Oracle, Accenture, HP, SAP, Tata Consultancy  Services, Capgemini are all among Service Based MNCs in world.

Product Based Companies: 
Microsoft, Google, Paytm, Amazon, Adobe are all product based Companies in world.
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