Wednesday, June 18

Career Steps: Product based company OR Service based company?

Briefly introduction to make it understandable to one and all:
an item that ideally satisfies a market's want or need
Service: provision of assistance to customers or clients, products or projects
The product or service is nothing new and it exists in every domain/space across the industry. Let me take up IT as I am into it. Well I started my career with a product based company. From then on I was fortunate to be associated with innovative products, budding products wherever I go.
While I was having a chat with one of my room mates, who worked with few java based projects there arose a little interesting topic, Product based company OR Service based company.
I just raised the same question with Linkedin community to provide their views as follows:

In IT which is good choice to shape a good career is it in Product based company or Service based company? Please give the pro's of each and also con's (if any!)

Following is the response from Rajesh Tibrewala, in which he covered the answers/views of the rest of people who attempted to answer the question.

It varies from person to a person. What i can share with you is how life in one differs from another:

1. Product Based Companies

You spend a lot more time with the same technologies, same code base, and often the same set of features.
You can never know your customer too well - remember, a product is ultimately an attemp to fit the same shoe to feet of all shapes and sizes (but the alternative is the software industry is - people would need to walk barefeet because turnkey projects are too expensive)
If you work on a successful product for a long period of time, the sense of achievement can be tremendous
Seeing a lot of happy customers is thrilling indeed
There are often comparitively long periods of lull - when the product strategy team is trying to figure out the future roadmap, and the latest release is already out
Often you will end up working on a codebase that noone owns - becuase the product is very old, and none of the original code authors are around. Also, the technology the product is based on could be nearing its death

2. Projects

Often developed from scratch - so you start with a clean slate
You get to know your customer very closely
Fast movement across domains, and often technologies
Direct appreciation by the customer
Often more time pressure compared to product cos

Well I selected this as best suit answer (in my view). Please read here for the rest of answers.

My LinkedIn Profile :


Ajay said...

Very well said sumanth. This distinction i guess poeple take a long time to understand. i liked it very much. Keepp rocking buddy

Smi said...

Have been searching for such awnsers for a while....but you missed the very first fact people eye on Money ...what you have to say about those deals with Product and service based companies?

sumanth krishna said...


thx for dropping by and your interest to comment here. Answering your query '...fact...people eye on money' I quite don't agree with that,

1. It's not fact,

2. There are too many techies around who would care more on technology they work with.

Do you think companies are paying less for people working on products?

Kurumbudel said...

It is well said by Rajesh Tibrewala, but I dont agree with it much. May be, this happens in case of Java, .NET or any other desktop application development where one does not need much expertise to be an expert. But if you consider some industries like Embedded, one can be an expert only after working for several years on a same thing or project. But in Embedded (I know it well as I work on it) Each product is different, each project is different. A same company can have different kinds of products, each would use a bit of every technology. In this case, I would say, working for a product developer is more important than working for a service provider, where one will be put into different kinds of projects or different domains each time which wont make him expert of anything!