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Is it better to work in MNC’s product based company or service based company?

In the last post i have tell about the What’s better? Working in a Startup or an MNC. Now in this I’ll tell about Service Based MNC’S and Product Based MNC’S. But before that, if you have not seen the previous post then first read that one shared below.

Working in a Startup or an MNC which one a better option


Let’s talk about which one is better; to work in MNC’s product based company or MNC’s service based company?

If you are in the IT Sector in India or anywhere then, you must have heard of the terms service based, product based companies here, which one is the better, and a whole a lot of opinions about this. But the main thing here is that though all the information been provided is correct or wrong, one needs to find which company which one would be better for ‘You’; because everyone’s priority at every stage of life is different as for someone distance matter, for someone money, and someone works satisfaction and growth. So, here we’ll in-depth discuss all the factors so that spending these 3 to 4 mins you would be able to take a better discussion for you for the next valuable few years at least! Let’s get straight into it. Let me just point out a few points for both then you can choose yourself. I would like to provide my point of view:

product based company or service based company graphics Source – Google

Product Based Companies

Product based companies have their own products which could be a application or website or software anything! Which they will keep working, maintaining for ages according to the changing times. For example Flipkart, Amazon. They have developed a basic website and app  with feature of mobile recharge only and within this decade they have optimize site, Products, Shipment History, UPI, Prime video, Kindle book online store, coupons and so much that every week its completely different user experience and they add something new in it and update it time to time. There are a lot of product based companies like google, Microsoft, fb, dell etc.

Product Development and Working Hours:

  • The software that you develop will be used by the customers directly or said that will used in a factory or in a organization etc, so you will feel proud when a customer signs up for your work.
  • flexible working hours and days. The time usually lies between 8–9 hours with an option of being flexible. So you can complete a few set hours to mark you day and the rest can be completed the next day. Now a days like Google company gives permission to work 4 days in a week so by this they feel relax and no extra burden on them.
  • As you develop the company own product you will feel more attached to this product and will gain huge product development experience in it.

Product Development and Working Hours:

  • The software that you develop will be used by the customers directly or said that will used in a factory or in a organization etc, so you will feel proud when a customer signs up for your work.
  • flexible working hours and days. The time usually lies between 8–9 hours with an option of being flexible. So you can complete a few set hours to mark you day and the rest can be completed the next day. Now a days like Google company gives permission to work 4 days in a week so by this they feel relax and no extra burden on them.
  • As you develop the company own product you will feel more attached to this product and will gain huge product development experience in it.

Growth and Work Satisfaction:

  • Here the product is the king. Everything is done for the product. If it’s a successful working product then that’s a leg act project which is currently supported by different teams with taking in New change requests or launching new version.
  • You will get a chance to know how well your product is selling on the market and that will decide your salary for the next year. Also you can buy shares of your own company.
  • There is always place for innovation where you can implement your own ideas in the development.

Project Deadline:

  • There will be pressure and stress depending on the product’s trend in the market. The more the trend more stress. But consider this as the perk to learn new things.
  • If your deadline is passed and work is pending, there is always a next version so pressure is less.

Salary in Product Based:

  • Salary in Product Based  As fresher in the IT Sector product based companies definitely offer higher package than service based. Product based company like Microsoft, Amazon, Google, Adobe, FB starting package from 10lpa and goes till 25 lpa average.

Service Based Companies

In this service based companies they are directly dealing with a client and build a software, app or website for them. For example passport seva of indian gov comes up to TCS to build a passport making website for them or ERP for any organization and TCS design, develop and maintain the site for them. Then, TCS here is providing service here. There’s other services companies also like wipro, Infosys, tcs, accenture, cognizant etc.

Product Development and Working Hours:

  • There is not as something to learn new because client is interested in deadline and learning takes some more time.
  • In most companies there is a strict 9-9.5 hours policy with zero or little flexibility. You can avail a half day but that would amount to 5 hours in total.
  • A Lot of new Projects that comes to you will be a maintenance project and you and including your leads and managers will not know about that project, just working on the bug fixes.

Growth and Work Satisfaction:

  • Almost all the work is as per the clients needs. You will find a number of legacy projects running with little or no scope to learn but you may also find projects which apply latest tech as per the clients needs.
  • There are a lot of chances(90%) that you will be in bench warming it up and waiting for not a great project. Sometimes you have to wait for months for assigning a project to you according to your profile or you have to try to go in another project.
  • Your appraisal is zero if you have no projects and instead of we blaming the company for not gettting us work, the company will say there is nothing special you did last year. Some of company giving badges to their employee for his/her work performance.

Project Deadline:

  • For getting into projects, you have to attend interviews even though you cleared every round and entered the company. That’s one of the frustrated process in this type of companies.
  • There will be more pressure and stress compared to product based companies if you have a client’s deadline.

Salary in Service Based:

  • Salary in Service Based  as fresher in the IT Sector Service based companies offer less  average package than Product based. service based like TCS, Infosys,wipro offer around 3.25-3.60 lpa  avg package to a fresher.

This is just my view, but there are some really innovative Service Based Companies out there, just google and you will go to a right place. My preference is a product based company and innovative service based companies.


Feel free to share what you think, in the comments below. If you like the post, do share it with your loved ones; so my thought can reach more and help everyone. Keep visiting back for more updates coming and new posts like this. Thanks for reading!

Do read more interesting articles on tech on our another blog Tekraze

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