Choosing the right company is crucial, as it shapes your skills and long-term career growth. Many students face the dilemma of selecting between Product Based Companies and Service-Based Companies and often wonder what these companies are and how to get into them.
Many students believe that top tech companies like Google and Amazon hire only from IITs or NITs, but this is a common myth. With the right skills, hard work, and consistency, students from tier-3 colleges can also secure roles in their dream companies. Now, let’s explore both types of companies in detail.
Overview of Product-Based Companies
A product-based company develops and sells its own products, focusing on innovation and continuous improvement to meet customer and market needs.
- Revenue is earned through product sales, licenses, or subscriptions.
- Strong emphasis on research, development, and product quality.
Examples:
Amazon, Microsoft, Google, Adobe, Intel.
Overview of Service-Based Companies
A service-based company focuses on providing IT services and solutions to clients rather than developing its own standalone products.
- Revenue is generated through client projects and service contracts.
- Work involves delivering expertise, support, or solutions based on client requirements.
Examples:
TCS, Infosys, Wipro, Tech Mahindra
Key Differences Between Product-Based and Service-Based Companies
Product-Based Company | Service-Based Company |
|---|---|
| These are the companies that have their own products to sell. Examples are Google, Alphabet, Facebook, Adobe, etc. | These companies may or may not have their own products, but their primary business is providing services to clients. Their clients can include product-based companies, government organizations, and other enterprises. Examples are Infosys, Wipro, TCS, Cognizant, etc. |
| These hire a very limited number of candidates from top colleges like IITs and NITs, and they generally don't conduct campus placements in tier 3 colleges. | These are the mass recruiters in campus placements. |
| These provide high salaries and hikes, also the salary is revised based on the cost of living. | These provide comparatively less salary and hikes. |
| These conduct more interview rounds, and cracking interviews is a bit more difficult than Service-Based companies. | Cracking interview is relatively easy and has few rounds. |
| The Learning curve is good, optimized, and efficient means are used. Also, you get to work on the latest technologies. | The learning curve is average. Generally, they put freshers into support projects where the chances are that one does not have the choice to select his/her domain. |
| Flexible office timings, all you need to do is finish your work in the given time frame. | Strict office timings, around 7-9 working hours per day. |
| Relatively high job security. | Relatively low job security. |
| Turnaround time is quick as products are bought instantaneously by Very hikes consumers. | Turnaround time is low and is dependent on the consumer's requirements. |
| A lot of revenue is invested in marketing and advertisement by these companies. | Very little is invested in marketing as these companies directly contact clients. |
| The client pays for tangible products after performing various tests physically. | There is no physical experience with the product and the client only pays for that. |