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Difference Between Product Based Company and Service Based Company

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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 them with a better learning environment. Before choosing their dream company, almost every student comes across the question if they should 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?

Difference Between Product Based Company and Service Based Company


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. So now let’s take a look at both companies specifically:

What is a Product-Based Company?

Product Based companies are the ones that produce high-end products in order to satisfy their customers’ requirements. These companies are focused on introducing or producing products that have a high market value. These are the companies that keep on improving their products and upgrading their technologies in order or be in the market. Some of the popular product-based companies are Amazon, HP, Microsoft, Facebook, Adobe, Intel, Informatica, Amdocs, CISCO, etc.

What is a Service-Based Company?

Service-based companies are the ones that do not have a particular product but their primary business is to provide services. If we talk more clearly then they work for other organizations or have client-based products. The services they provide are intangible and can be provided in the terms of expertise, amenities, or skills. These companies generally provide less salary compared to product-based companies. Some of the popular service-based companies are TCS, Infosys, Wipro, Tech Mahindra, etc. 

Key Differences Between Product-Based and Service-Based Company:

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 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 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 Veryhikesconsumers.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.


There are many companies in the market and some are service-based and some product based, it depends upon a person’s interest in which company they want to work for. Now when you have gone through the basic difference, you can assess that properly and make up your mind accordingly.

Last Updated : 07 Mar, 2023
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