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?
Wipro – https://youtu.be/wGdtA38-3YU
Infosys – https://youtu.be/whmQxynp-S0
TCS – https://youtu.be/Jz8roc-G2g0
Accenture Part 1 – https://youtu.be/U7mfo7Sj07Q
Accenture Part 2 – https://youtu.be/HmBtlY-gQm8
Cognizant – https://youtu.be/wRQK28ssgx4
IBM – https://youtu.be/7ly5irNd_rk
Capgemini – https://youtu.be/MGuehquIp8g
Oracle Part 1 – https://youtu.be/0Q-0sk7GhtU

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

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Why product companies pay more? Product vs service based company