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Despite similarly sounding names, there are huge differences between project and product development. These two concepts are often confused with one another that sometimes even experienced people in the field find it difficult to tell the difference. So, if you plan on hiring a developer for product or project development, it is imperative for you to conceptualize the difference between the two.

This is mainly because the process of selecting the right IT Company during development is of great importance. Therefore, if you make a mistake and hire the wrong company, it will directly result in the wastage of your efforts, time and money. That's why in today's article, you will learn more about the main differences between project and product development.

Therefore, the process has nothing to do with product development, despite the fact it provides valuable information on what type of product has to be created. Additionally, a project is developed only for handling specific applications of an organization where look and feel of a product doesn't matter, just the idea does. It is when a company wants to optimize its processes, but doesn't want to waste money on purchase a ready-made tool that may or may not meet the exact requirements.

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Product development, also known as the 'Stage-Gate' process is when a product manager collaborates with other teams in order to 'develop' new innovations. Developing a product means creating something that a company intends to sell and generate revenues afterwards. It is strictly related to business and focuses on a wide range of consumer needs, wants and requirements. In fact, it has a whole life-cycle consisting of multiple stages.

The process begins right from the very conceptualization of the idea to developing all the architecture, drawings, designs of the products and then converting them into real, workable and sellable products. However, developing a product requires strong support and the assistance of professional product designers and industrial designers. Regardless, the entire process is performed to develop a product with the intention of selling it in the marketplace to represent the image of a company.

On the plus side, since the cost of the bond is included in the contract amount, the city may have saved about $3,000 for the tax payers. That's the approximate difference between the cost of a traditional 100 % performance and payment bond as opposed to this maintenance bond issued for a lower dollar value.