In an attempt to make the job aspirants aware of the IT Industry,its recruitment process in general & path to be followed to get into a company,we wrote some articles like the following :Technical Interview Demystified
We have been getting questions from some students about difference between product & service based companies.Now in this article We would take you down to the types of compnies that exist in the IT industry and the basic differences between them.
Basically there are only two types of companies in the IT industry and you might have well heard about the names for sure.
1. Product based Companies
2. Service based Companies.
Ever wondered about the basic difference between them? Well the names of these says it all.
Ever wondered about the basic difference between them? Well the names of these says it all.
Let me take an example of a company of each type :
Google,Amazon & Facebook are some examples of product based companies and Infosys,TCS & HCL are some service based companies.
Product based companies will have a software/web product which they sell/rent to make money & the product can well be different things ranging from a website to Enterprise software product.
Service based companies on the other hand would do any thing & every thing in this world if asked by a client.Most of the companies in india are service based companies & that is what we indians are generally good at
But most rich companies in the world are generally product based & that is because of the innovation which they put in building the product.
For example,Apple is a product based company which has products like Iphone,Ipad,Mac etc and Oracle on the other hand is also a product based company which has various products like Database,CRM solutions etc used by hundreds and thounsand companies in the world. Product based companies sell products in two ways B2C & B2B where B2C is an example of selling the products to individual customers like Apple does and B2B is an example of selling the products to other businesses like Oracle which sells its database licenses.
Service based companies like Infosys & TCS have focus on clients & would solve any problem faced by the client using technology ranging from building a website to automating their work flow systems.
Product based companies try to solve problems in general & service based companies rather concentrate on specific clients problems and this is the fundamental difference between both of them.
Getting into a good product based company would be the dream of a typical computer science student & one needs to have strong problem solving & algorithmic skills, where as getting into a services company is quite straight forward which requires you to be aware of some technologies.
India now is seeing a drastic increase in the product based companies as many start up’s are coming up with some innovative & awesome products & hopefully we see more coming.
May be you can try to get an internship or full time position with one of the start up product companies which would greatly help you learn things compared to any other company.
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Author : Venkatesh Thallam
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