Product-based IT companies develop their own products to sell, e.g. Google, Facebook, Adobe etc. Product-based companies operate both in the IT and non-IT fields. However, they need IT support for their products. Service-based companies may or may not have their products. Generally, they work for other organisations. In fact, they provide services or support to the product-based companies who are their clients. To illustrate, Wipro, Cognizant, TCS, Accenture, Infosys are service-based companies.
Product-based companies keep small teams of bright candidates from good institutes. Service-based companies hire from all sorts of institutions in large numbers. Emoluments at product-based companies are high. Comparatively, service-based companies provide average salaries. Recruitment and selection at product-based companies is competitive, and tough. The candidates face a series of interviews. Comparatively, service-based companies recruit easily if the candidate’s fundamentals are good. Product-based companies offer flexible timings and service-based companies expect an 8-9 hour shift. Product-based companies have to do marketing spend. Service-based companies sell their service by contacting clients.
India so far focused on IT services and companies such as TCS, Infosys, Wipro and HCL are known for their IT services to clients. They work on different projects of the clients, and each projects is time-bound. Engineers working in services provide support to the clients whenever required, even on holidays. Product-based companies say Amazon develop products according to the time-frame they set. Product-based firms take ownership and deliver on time. They are proactive and customer-centred. At product-based companies, codes are deployed on a daily basis, and there is no deferring to a future date. It is a good learning ground for freshers. Codes once formulated are not changed frequently. Whenever, changes are made, they are for the long-term. In a product company, you learn the tricks of the trade on the job. You have to learn on your own. Services companies provide you enough time to pick up things. Engineers are given training in the fields required. They are exposed to different programming languages. Each project has its own requirements. In product-companies, manpower migrates from one software to another in a well-planned manner and are given enough time to learn the nuances of the new product. In service companies, candidates who are without a project work sit on the bench. During this time, they brush up their skills. Projects are randomly allocated, and the project that comes to a candidate is a matter of chance. It is difficult to get released from an on-going project in a service company. Service companies while recruiting just test the fundamentals of the candidate. In product company, they test the candidates ability to apply his knowledge. They have to code a problem to offer a solution.