Why product companies pay more? Product vs service based company

Why product companies pay more? Product vs service based company
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Topics covered
* What is a Product based company?
* What is a Service based company?
* Why do Product companies pay higher?
* Product based vs Service based
* Which one to choose?
* FREE Giveaway for engineering students

Series - Is it worth joining?
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INTRODUCTION
In the IT industry, there are two types of organizations at a very broad level.
1. Product Based Company
2. Service Based Company
If you have to work in IT, you will have to choose between these two types of companies.
Now which one to choose if you have a choice to make?
What parameters we should consider while making a decision about accepting a job offer?

Talking about, why does Product companies pay higher? There are many reasons why but We will explain you this via an example of two major companies from an output perspective.
• TCS which is one of the biggest service based company
• And Alphabet those who don’t know, is the parent company of Google
TCS had revenues of around 19 billion USD last year and has whooping 400K employees.
On the other hand, Alphabet which is a product based company had revenues of around 137 billion USD last year and has 99K employees.
Let’s find out how much do these companies make per employee, we can derive this by dividing revenues by employees
TCS has 47,500 USD revenues per employee whereas Alphabet has 1.4 million USD revenues per employee.
Alphabet’s employee generates 30 times more revenues than TCS. So I hope you would have understood now why product based companies pay higher

#CareerSwami #Product #Service
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Why product companies pay more? Product vs service based company

[CareerSwami]

eLearning and Live classes for Project, product and Program Management

[ayasswain]

Very well explained with facts but you missed one important thing. Services companies provide onsite opportunities (foreign country) to their employees by sending them to work at a client's office, where in it is rare in product based companies (that's a transfer to their own office in another country or to the head quarter). A product company does all of it's work offshore with the engineering talent they have. People who aspire to go abroad to earn more can opt for service companies but at the same time top product companies in India are paying very high salaries to senior engineering positions now a days which is very close to the onsite salaries provided by the service companies. So product companies are compensating at that front also but they will expect you to be doing really well in the technology side. Self learn, keep upgrading your technical skills with time, take more responsibilities, come up with new ideas are some of the high expectations that product companies expect from their engineers while issuing the high pay cheque. So people should keep this in mind.

[BiancaAguglia]

Interesting. I didn't know many of the differences you pointed out between product vs. service companies. I learned something new today. :-) Thank you for the video.

[mobigamez]

Yeh product based companies high salary because they have stable income has compared to service based company, but service based companies too pay high if they are involved in this sectors like cyber security, block chaning, cloud infrastrue

[vd]

Hey, give us suggestions regarding switching from service based company to product based company with an experience of 1-2 years

[sejalseth]

Very nicely explain, there are a lot of videos but no one has explain it in a better way.

[ramanjiy]

How should I know the company is good or not? Which website I go with?

[vadlamudimadhuri]

Thanks for sharing good information..! I am currently working in one major service based company, but planning to switch as timings are not flexible. Could you please suggest some working mom friendly organizations (service/product based) with some good policies. I am from testing background.

[vemaiesli]

I am working as an Java/API developer in a service based company. How do I transation into a product based company?

[AdityaKumar-xlzw]

my dream is not to work in any of these companies but i want to set up my own IT company
which will be on top one day

[sachinyadav]

I have worked with left side left column

[vkapoor]

I wish this video existed in 2016. I have spoiled my career joining Wipro Technologies. First they gave me joining after 9 months of my graduation. Secondly, they don't even let you choose your technology. Third, I was moved in a Support project and I resigned after working there for 15 months. In 15 months, I did not got to develop even a single market relevant skill and is unemployed after that. Now, just because of my analytic skills I cleared bank po exam. It is the only option that I have to take forward my career.

[prashantkumbar]

Hi Sir, What about Bosch firm. Is it service or product based?

[tamalbanerjee]

Hello sir i just want to be an accountant, now I'm a fresher will you please suggest me what should i choice?

[akshat]

Which one will you pick between Teradata and EY?

[wasifiqubal]

Can I switch from service to product based company? The experience of service based company will be helpful or not?

[mallikasoundararajan]

Sir, which will have better onsite opportunity ??

[kunjandesai]

There are so many smaller product based companies, but people hesitate to join them bcoz there is no job guarantee.

[ranjanakasbe]

very useful information u have explained. interview opportunity give to MBA students also

[floyduk]

Where do you get these stats from? Where does it say you have to do 9 hours a day in a service based company? Sorry that is just made up.