Difference Between Product Based and Service Based Companies: Companies in the IT industry There are two types of companies Product Based and Service Based Companies.
Difference Between Product Based and Service Based Companies
Product Based Companies:
A product based company would be working on its own products and delivering them to customers. They will be looking for candidates who know about the latest technologies and understand technical and domain issues.
Students with a specialization that meets their requirements will mostly be hired. At least one round of their interview will be by the team requiring a specific skill.
The team will determine if the candidate matches their requirements while demonstrating fit with their team. As they get more students, they spend their time recruitment in premium institutions such as the IITs, NITs, and some boutique ones.
Unlike Service, where you usually work on a product for months (or years in rare cases) rather than years, in product based companies, you work on the same product for years.
In most cases, product based companies view their employees as one of their greatest assets since losing them would be a significant loss because a new employee would take longer to learn their product.
A product based company considers quality king, while a service based company thinks the client is king. There will be more learning opportunities since you will be tackling a new problem and writing code from scratch.
Product based businesses have an average salary of around 12 lacs per year. The average start-up pays at least 6 lac per year, even if it is not established. You won’t have to worry about timing: You need to do your work. Product based companies include Facebook, Apple, Amazon, Netflix, Google, Microsoft.
Service Based Companies:
The Service based company is an IT company that does not provide direct services or products to the end-user. Service Based Companies work for other companies. They recruit from regular colleges in our state.
A majority of the time, these companies do not require only students studying computer science or information technology to attend their interviews. As a result, they will open up the interview process to all departments, including civil and mechanical, and select the best candidates.
These companies can select you, but you will not join until after a year. First 3 months will be training according to the what project going on and need of the company. Their employment will only be allowed after they have completed specific tests.
You will not be taught APIs and tools from other product companies during this training but instead will be taught how to use some of the standard tools they develop.
Aside from this, the job will be repetitive, with little learning, and keeping up with the latest technology will be difficult.
In these types of companies, there is also a period called a bench, where the employees are idle on their campus because the project is not available. There tends to be a lot of strictness regarding office timings and dress codes at such companies.
The average package offered by these companies to fresh graduates is around 3 to 3.5 lacs. The amount you will get in hand after all deductions will amount to approximately 24,000. Service based companies include TCS, Cognizant, Infosys, Accenture, Tech Mahindra, Other service based also available .
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