Why Product Based Company?

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4 min readMay 5, 2020

The IT industry has grown rapidly in the 21st Century. With the innovation, technology, and development happening every day, the curiosity of the new generation towards this sector is also increasing day by day.

Make sure that you acquire a piece of good knowledge and skills before entering into the product based company. You have to be flexible as well as innovative at every point.

“Good companies manage Engineering. Great companies manage Product.”
“Be stubborn on vision but flexible on details.”
“At the end of the day, your job isn’t to get the requirements right — your job is to change the world.”

There are mainly two types of companies in IT Sector:-

Product Based Companies
Service-Based Companies

What is Product Based and Service-Based Companies?

1. Product Based Companies:-

A product-based company is a company that makes products like AWS, Oracle, and Microsoft Azure and sells its product to the client.

Some product based company which makes products which are not related to software, but they need the IT department to make that product more sellable.

The product-based companies are searching for Good Talented Developers. They aren’t looking for specific programming languages. You must be strong in any one programming language and algorithm development.

Teams are small so the interaction is very good, leading to fewer politics and job certainty is high.

List of Product Based Companies:-

Google
Microsoft
Facebook
Amazon
Oracle
IBM
Yahoo!
Goldman Sachs
Quick Heal
PayPal

2. Service-Based Companies:-

A service-based company is a company that provides services for software products. They provide Software as a service(SaaS) to the client.

They make software as per the requirement of the client. Sometimes they will not provide justifications for rejection or selection. Very inflexible timings, you have to complete the fixed hours (8–9 hrs) in the office before leaving.

They train the candidates on the technology as per the requirement. They are generally mass recruiters.

List of Service Based Companies:-

TCS
Wipro
Infosys
TechMahindra
Accenture

Job Security and Work Pressure:-

According to various reports, job security is usually higher in product-based companies than service-based companies but an employee in a service-based company feels more pressure due to the tight deadlines and targets.

Recently, it has been observed that service companies tend to hire in large numbers these days and after the training period, most of the hired candidates are benched for several months.

This is the reason why job security is less in service-based companies and part-time jobs aren’t usually available in the service-based company whereas product based companies usually offer part-time jobs and internships.

Work culture:-

The work culture and environment of product-based companies are very healthy for their employee. There are flexible work time and no restrictions on the working hours.

The company can provide many spots where employees can feel better to work, also provide indoor games to boost your mind. There is a great life balance in both professional and personal life.

Learning Graph:-

In a product-based company, you have lots of chances to learn new technology or work on different projects. The learning graph will be far better than the serviced based company.

They generally used an optimized way of coding/solution so the learning graph increases linearly which is actually best for your carrier growth.

They maintain a clear boundary between development and support work so a candidate can be dedicated to the particular work/project and their learning will be awesome.

Salary:-

Obviously, salary in product-based companies is far better compared to Service-based companies. When we talk about promotion/appraisal then these companies are very much transparent which means it purely depends on your performance.