Difference Between Service Based and Product Based Company

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Service Based vs Product Based Company

Service Based vs Product Based Company : Many of the engineering students don’t know what is service based company and what is product based company in this post I would like to share my views on service based company and product based company and I would also share my views on being a computer science students which company they should choose product based or service based company? .

Let me explain about both service based and product based companies in simple terms , the first one(service based software company) is compared to a restaurant where we go, order food that we want and then the food is prepared according to our order and served to you.Imagine the second one (product based software company) is compared to an ice cream parlor, where we go and pick a flavor of ice cream which they have already have made we cannot order our customized flavor.

What is Service Based company?

Service based company is company which provides software product and services to anyone who asks for it for a price.So most of the softwares are pre-designed for the sake of clients.

If you work for Service based software company:-

  • You will work on projects that can be anything and on anything.
  • Clients decide your deadlines, your leaves, even in some projects breaks are controlled by clients.
  • In service based company you will have less flexibility and less innovation.
  • Your main aim and your team aim is to satisfy your client needs and requirements in short period of time.
  • You don’t get much time to learn new technologies and you will become expert on the language that you are working.
  • At some times company might fire you on the basis of no new projects and if client complains about your performance.
  • You will get to know about new business in the market around the world and projects.
  • You are actually providing service to a product based company.

List of Service based companies in India:-

IBM, TCS, Accenture, Infosys, HP, CSC, Wipro, Genpact, Tech Mahindra etc.

What is Product based company?

Product based company is a company which makes products which might be or might not related to software or computers, but they need IT department to make that product more flexible to its users and gain more profits.

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If you work for product based company:-

  • Product based companies will have their own soft wares and decides what they actually need and on what language which suits best for their business.
  • Deadlines are probably decided by internal team management
  • You will learn many new things in product based company as they keep on changing the technologies according to the market standards to sustain in the market.
  • If you have any innovative ideas that benefits to your company they always consider their employees ideas and if that idea is super innovative they apply immediately.
  • So there will be more innovation on the same line of products.

Some of the Product based companies are:-


Here we are giving how the mindset of the guys will be in product based and service based companies.

No Service Oriented  (First type guy) Product Oriented Companies (Second type guy)
1 How does this affect ‘ME’? How does this affect ‘MY PRODUCT’?
2 Does this change/affect the way my manager (or manager of manager) (or client) views me/my project? Does this change/affect the way the public views my product?
3 Does this provide any chance of growth in my monetary value (CTC) or my project’s monetary value? Does this provide any chance of growth in my intellectual/social value or a personal sense of achievement?
4 I don’t care about what I work on as long as I am paid. I care about what I work on, because I am going to be identified as a part of it.
5 I am very much sensitive about my manager’s/client’s treatment of me. I am very much sensitive about the public’s treatment of my product. Because, I put my work into it.  The product is my brain-child
6 Am I/my project being noticed by the organization? If not, how to get noticed? Is my product being noticed by the public? If not, how to change it so that it gets noticed?
7 How do I work to beat other teams, to make my project better? How do I work with other teams, to make my product better?

So by this post I want to convey all computer science engineer students is that they should aim for product based companies and get job in product based companies rather than service based companies.



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