Difference Between Product Based and Service Based Company in India

Software/IT companies have evolved a lot in the past decade. They will continue to innovate and discover new possibilities in science and technology. India has also played an essential role in software and technology. Companies like TCS, Infosys, Wipro, etc., have made a breakthrough in hiring millions of graduates and non-graduates from India in the past decade.

In the Indian market, there are two types of companies :

  • Product Based
  • Service Based
Difference Between Product Based and Service Based Company in India

The students pursuing a graduate degree always face a dilemma in knowing what exactly is a product based or a service-based company. This article will get to know the exact meaning and difference between a product-based and a service-based Company.

What is a Product Based Company?

A product based company mainly deals with selling a physical or digital product. Product development and quality is the core objective of a product based company. Microsoft, Google, Adobe, Dell are some of the examples of a product based company.

Microsoft’s products are Windows OS, Microsoft Office Suite, Microsoft Outlook, Microsoft Edge, etc.

Qualcomm is another product based company that sell products like Snapdragon Processors, Snapdragon Modems, etc.

Apple, one of the product based company giant, sell products such as the iPhone, iMac, iPad, etc.

What is a Service Based Company?

A service-based company deals with non-physical products. The core business of a service-based company is providing services to clients. Service-based companies are clients of product-based companies. Examples of service-based companies are TCS, Wipro, LTI, Cognizant, Infosys, Capgemini, etc.

Infosys provides services like database management, network management, blockchain, applied AI, digital marketing, Internet of Things, cybersecurity, testing, etc.

Persistent is another service-based company that delivers services such as privacy management, identity access management, cloud, infrastructure, intelligent business automation, etc.

Difference Between Product Based and Service Based Companies

1. A product based company have high salaries and a high frequency of hikes. In contrast, a service based company provides less salary, and the hike frequency is shallow.

Example: The average salary in a product-based company like Google can range from ₹50,00,000 to ₹1,50,00,000 a year. In a service-based company like Accenture, salaries can range from 3 LPA to 16 LPA.

2. The learning curve in a product based company is extraordinary, and decent means are delivered. While in a service-based company, the learning curve is average.

Example: In product-based companies like Microsoft, you can learn new technologies in the computer science space. In a service-based company, you have to struggle for project allocation occasionally.

3. Product based companies have an adaptable working time, whereas a service-based company has a strict 8 to 9 working hours. You can even work from home in a product based company.

Example: Some product-based companies like Twitter and Facebook have permanently permitted their staff to work from home.

4. A product based company has a more creative, efficient, productive, and complicated job than a service-based company.

Example: Facebook and Google are working on futuristic technologies like holograms, augmented reality, virtual reality, etc.

5. The recruitment process in a product-based company is callous, whereas, in a service-based company, it is straightforward to crack an interview.

Example: There are at least six stages in the recruitment process of the product based companies such as online round, on-site round, technical round one, technical round two, technical round three, and technical-cum-HR round. In a service-based company, there are at the most three rounds.

6. A product based company hire a very fixed number of candidates, whereas a service-based company carries mass recruitments.

Example: Microsoft hires one or two candidates from a tier-one college on average. Infosys, which is a service-based company, hires 50 to 100 candidates in single on-campus recruitment.



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