Services companies were originally based on technology skills but now have specialized verticals, while product companies faced barriers but are now growing rapidly. Products require domain expertise to build something lasting that can be upgraded, with developers deciding solutions, while services follow client specifications, have diversified risk but less focus on future needs.

1. Services Vs Product

2. Industry Trend in India Services Earlier on organization in services industry was based on technology and skill level. Now they have verticals. Product Very few companies ventured into products due to protection of IP and other obstacles. Now this section of the industry is rapidly growing.

3. Domain Knowledge Services Not tied to a single domain and therefore gets more exposure to various industries but no expertise in any one Product You need expertise on your domain to be productive

4. Organization hierarchy Services High volume of employees as services increase their profits by adding more manpower and therefore a rigid hierarchy Product Lesser importance to hierarchy and more weight on domain expertise and product knowledge

5. Life cycle Services Life cycle which is requirements analysis, design, implementation, handover. Low consideration of future technologies or requirements. Product The emphasis is on to build a product that will last for several years and will undergo routine enhancements and upgrades of technology.

6. Decision Making Services Decisions are taken by the client You are handed specs Product Decisions are taken by the developer You are handed a problem Commitment to requirements not specification

7. Risk Services Diversified to various industries and lots of employees. Bad quality of some developers don’t affect the organization neither does slump in any industry Product High Risk. High risk can result in high gain.

8. Thank You.