Product Based VS Service Based: Which Is Better For Tech Jobs?

product based vs service based

Choosing between a product based or service based company for a tech job can be tricky. On the one hand, product based companies offer the chance to work on cutting-edge products that can change the world. But on the other hand, service based companies provide an opportunity to help people and make a real difference in their lives. So what’s the difference between product and service based company?

Let’s find out!

What Is A Product Based Company?

A product based company is one in which the focus of the business is to create and sell products. These products can be tangible, such as a physical object that you can see and touch, or intangible, like a software application. The main goal of a product-based company is to generate revenue by selling products to customers. For example, Apple is a company that develops and sells consumer electronics, such as mobile phones, computers, tablets, and software.

Many excellent tech companies are product based. Some of the top product based tech companies globally include Apple, Samsung, and Microsoft. These companies have created innovative products that have revolutionized the tech industry. They continue to hire top talent and offer competitive salaries and benefits. They also provide ample opportunities for career growth and development.

Learn more- Top product companies to work in India

Advantages Of Working In A Product Based Company:

Advantages of product based company
  1. You will have a clear roadmap and vision for your work: In a product based company, there is always a clear roadmap and vision for the product, which means that as an employee, you will always have a clear idea of what needs to be done and where the company is headed. This can make it easier to stay motivated and focused on your work.
  1. You will be able to see the impact of your work: In a product based company, you will see the direct result of your work on the product. This can be very satisfying and can help you feel proud of your contribution.
  1. You will have more opportunities to learn new things: In a product based company, you will likely have more opportunities to learn new things and gain new skills. This is because product companies are always looking for ways to improve their products, and they need employees who are willing to learn and experiment.

Disadvantages Of Working In A Product Based Company:

Dis advantages of product based company
  1. You may have to work long hours with little recognition or appreciation: In product based companies, employees are expected to work long hours to meet deadlines. As a result, they may not get the recognition they deserve for their hard work and may even be taken for granted.
  1. The company’s success is dependent on the product succeeding, so you may be laid off if it doesn’t: Product-based companies put a lot of pressure on their employees to ensure that their product is a success. This means that if it fails, these companies may have no choice but to lay off workers. This can be stressful and make it hard to plan out your career path when you don’t know whether your job is safe or not.
  1. Your skills may become stale if you’re not working on new products: Employees are often focused on just one type of technology or product in product based companies. This can lead to your skills becoming stale and out-of-date over time, making it difficult for you to find new roles within the company when you want more challenges or opportunities to learn new skills.

What Is A Service Based Company?

A service based company is one in which the focus of the business is to deliver services to customers. Services are intangible products that require human involvement to be delivered. For example, an IT consulting firm may provide IT project management or network support services. The primary goal of a service-based company is to generate revenue by selling its time or expertise to customers rather than selling products directly.

Many service based companies hire tech people globally. Some of the top ones include Accenture and Infosys. These companies are known for providing high-quality services and having a strong focus on employee development. They offer a variety of training and development programs to help their employees stay current in their field and grow their skills.

Advantages Of Working In A Service Based Company:

Advantages of service based company
  1. Increased job security due to the ever-growing need for service companies: Working in a service based company will provide you with job security since the demand for services is constantly growing. With an ever-expanding population and technology needs, companies have no choice but to turn towards outsourcing.
  2. More opportunities for professional growth: In a service based company, there are always more opportunities for career advancement since you will be working directly with higher-level executives on projects that hold far greater importance than those of your average tech job. There are many ways to make yourself a valuable asset- from learning new programming languages to taking leadership courses.
  1. A greater incentive for innovation: It has been proven by multiple studies that most innovation comes from startups and small businesses rather than more giant corporations further down the supply chain that receive their products and services. As an employee of a service based company, you will have a much more incredible opportunity to put your innovative ideas into practice and make them a reality.

Disadvantages Of Working In A Service Based Company:

Dis advantages of service based company
  1. Service based companies can be challenging to scale: As the company grows and takes on more clients, it can be challenging to maintain the same level of quality and service. This can lead to unhappy customers and a drop in business.
  1. You may not have much control over your work: If you are working on a project for a client, they will usually have the final say over the project’s direction. This can be frustrating if you don’t agree with their vision or if they are constantly changing their mind.
  1. It can be difficult to find new customers and grow the business: One of the biggest challenges for service based companies is acquiring new customers and growing the business. This can be not easy if you don’t have a strong marketing strategy or an extensive network of contacts.

Product Based Or Service Based: What’s Best For Tech Professionals?

There are many options for tech professionals when choosing a company to work for. Some companies focus on product development, while others focus on providing services. Both types of companies have their advantages and disadvantages. So, when it comes to Product Based VS Service Based companies, which one should you choose?

Product based companies typically offer more opportunities for career advancement and higher salaries. They also tend to be more stable since they’re not as reliant on external factors like the economy or market trends. However, these companies can be more challenging to hire, and the work can be more demanding.

Service based companies are usually easier to hire, and the work is often less demanding. In addition, these companies are often more flexible since they can quickly adapt to shifts in the market or changes in client demands. However, they can be less stable since their success often depends on clients’ performance or other companies they work with.

If you want a fast-paced and challenging career that pays well, then a product based company is probably your best bet. But if you’re looking for more flexibility and stability, then a serviced based company may be more suitable.


Ques-1 What are the different types of service based companies?

Ans- There are numerous service based companies, ranging from large corporations to small startups. Some of the most common types include Consulting firms, IT outsourcing firms, Professional services firms, and Freelance platforms.

Ques-2 What are the different types of product based companies?

Ans- Some of the most common product based companies include technology firms, manufacturing firms, and retail businesses. These companies are focused on developing new products or providing services that help their customers meet their needs.

Ques-3 What are the pros and cons of working in a service based company?

Ans- The main advantages of working in a service based company include having greater control over your work, more significant opportunities for innovation and creativity, and the potential to earn higher salaries. However, some of the main disadvantages of working in a service based company include scaling up as the business grows, limited control over projects and clients, and the challenge of finding new customers or growing the business. 

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