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Difference Between a Product Based Company and Service Based Company

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  • Difficulty Level : Easy
  • Last Updated : 19 Jul, 2022
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Choosing the right company is a must as your entire career will depend on the skills you learn and the abilities you have. Everyone wants to be in a company that helps in improving their skills and provides you a better learning environment. Before choosing your dream company, almost every student comes across the question that should I choose a Product Based Company or a Service-Based Company? Also, What exactly do Product Based Companies and Service-Based Companies mean and how to get into these?


The biggest confusion among the students is that the top tech-giants such as Google, Amazon, etc. hire only students from IITs or NITs, which is the biggest myth. If you have the ability, and you have the desired skills, then you can get into your dream company even after being from a tier-3 college. All you need is hard work and consistency. 

In Product Based companies, there are smaller teams, and employee-friendly policies whereas in the later there are larger teams and fewer employee-friendly policies. It is clear that Product Based Companies are better than the Service-Based ones, but if you are not able to get into the former one but have the opportunity to work in a service-based one, then don’t miss it. Something is better than nothing. You can get hands-on experience from there too and after some experience, you can switch to the Product-Based one. 

Product-Based vs Service-Bases Company

Product-Based Company

Complete Test Series for Service Based

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 products, but their primary business is service. They work for other organizations or we can say they are clients of Product Based companies. 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 hike, also the salary is revised based on the cost of living.These provide comparatively less salary and hike. 
These conduct more interview rounds, cracking interviews is a bit difficult than Service-Based companies.The 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 the 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.A very little is invested in marketing as these companies directly contact clients.
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