Question

Why indian it industry is service based rather than product based?

Answer 1

For product the development cycles are longer and there is no clients to bill us in this time ,so when a service company starts to make products in large scale it will definitely hit its revenue and profit margins .Whereas if you are a service vendor you get billed even in development cycle and later when the solution is deployed via maintenance/change requests and support.

Also the turnaround time to make a product successful and compete with the rest in market requires huge investment and time which may not be always a success.

As all the service companies in the list are very sensitive in growth and revenue not all of them make large turns into products but these companies do have a few successful products like infy has finacle and TCS has BANCS.

The guys in service companies are competent enough to make products as well and that is not the only reason they don't turn to products.

Answer 2

Explanation:

• Indian companies have service contracts because of the low cost of resource availability. In service-based company all is to execute customer requirements. Resources should be knowledgeable enough to use the tool to provide solutions to client.
• In Products base companies you have to develop application requirements. Based on the requirement of the customers you have to create concept and convert that concept to Products. Obviously this is investment and risk is also involved in the same.
• Indian companies try to take the safe route for same, however some companies have developed unique Products also but they are not able to do market them well.

To know more

What is product based company and application based company?

https://brainly.in/question/9559698

Give example of some product based company and service company

https://brainly.in/question/12379077