Let me just point out few points for both then you can chose yourself.
- If you like really challenging technical work, then service based is definitely not for you.
- less wages.
- You might have to work for long hours to prove your worth because there is not much scope to rise by sheer brilliance.
- If you really want different projects, and want to work in different domains, then nothing like service based company.
- Unlike a product based company if you are good in technical skills then it is relatively easy to grow in a service based company.
- Being in product based company does not guarantee a great technically challenging work. But probability of getting good work is higher.
- Higher wage compared to most service based companies.
- In product based companies chances of working new technologies is higher.
- You are usually surrounded by really good talent. That also contributes a lot to your growth.
- At the end of day manager as well as team has to work to save yourselves from being kicked.
- They usually do not bother about work hours or working from home. As long as you are giving result most likely you are fine.
- Unless you are working in really big product based company, it is difficult to move to a different domain.
- Difficult to get yourself stand over all or better among others.
Now coming to your query, your work experience, domain and your projects really matter to go to good colleges. If you work in a product based company, you are more benefited as per your projects, work and company brand or name will give more better chances to get into top colleges than, service based company.
Hope this helps you.