abhishreshthaa
Abhijeet S
Service Sector in India
The growth of the service sector in both the developed and developing world has been phenomenal. As economies become progressively service driven, greater wealth and employment is being generated in this sector. Before we begin, what exactly are the different types of services?
Services can be classified into four categories on the basis of the service customization and customer contact, and we would look at the categories as follow.
First of all would be the Service Factory, with such examples as airlines, hotels/resorts and trucking. This is the type where there is low customer contact and low degree of customization. The services offered need to be warm and exciting, and attention must be paid to ambience and physical surroundings.
Secondly, the Service Shops, where there is high degree of customization. The management must deal with skilled labour and the key challenges would be keeping cost down and quality up. Examples are hospital and auto repair.
The third type of service would be the Mass Service, where there is high level of customer contact and low level of customization.
Managing and controlling the workforce would be the key and examples are retailing, wholesale trade and school.
Lastly, the Professional Service Firms, with a high degree of customer contact and customization. The key to this type of services is the managing and controlling of people, management's ability to deal with skilled workforce as well as keeping cost down and quality up. Some examples are doctors, lawyers, consulting firms and so on. Due to the growing importance of the service sector, academics and consultants worldwide have make efforts towards improving the management of service businesses.
Similarly, in India, the service sector has been growing rapidly over the last decade or so and the trend is likely to continue. If one describes an economy based on its major economic sector, then India made the transition from an agricultural economy to a service economy in 1979.
In 1985, the service sector accounted for 47 per cent of GDP, having expanded at an average annual growth rate of 7 per cent between 1980 and 1985 The share of services sector in the real GDP in India has surpassed that of agriculture and industry at a relatively faster pace as compared to other industrialized nations.
Service sector has become the main contributor to the GDP not merely in developed economies like U.S.A.(71%), Japan(60%) & U.K.(67%) but also in developing economies like China(33%), Indonesia(41%), Pakistan(50%) & Brazil(56%).
The growth of the service sector in both the developed and developing world has been phenomenal. As economies become progressively service driven, greater wealth and employment is being generated in this sector. Before we begin, what exactly are the different types of services?
Services can be classified into four categories on the basis of the service customization and customer contact, and we would look at the categories as follow.
First of all would be the Service Factory, with such examples as airlines, hotels/resorts and trucking. This is the type where there is low customer contact and low degree of customization. The services offered need to be warm and exciting, and attention must be paid to ambience and physical surroundings.
Secondly, the Service Shops, where there is high degree of customization. The management must deal with skilled labour and the key challenges would be keeping cost down and quality up. Examples are hospital and auto repair.
The third type of service would be the Mass Service, where there is high level of customer contact and low level of customization.
Managing and controlling the workforce would be the key and examples are retailing, wholesale trade and school.
Lastly, the Professional Service Firms, with a high degree of customer contact and customization. The key to this type of services is the managing and controlling of people, management's ability to deal with skilled workforce as well as keeping cost down and quality up. Some examples are doctors, lawyers, consulting firms and so on. Due to the growing importance of the service sector, academics and consultants worldwide have make efforts towards improving the management of service businesses.
Similarly, in India, the service sector has been growing rapidly over the last decade or so and the trend is likely to continue. If one describes an economy based on its major economic sector, then India made the transition from an agricultural economy to a service economy in 1979.
In 1985, the service sector accounted for 47 per cent of GDP, having expanded at an average annual growth rate of 7 per cent between 1980 and 1985 The share of services sector in the real GDP in India has surpassed that of agriculture and industry at a relatively faster pace as compared to other industrialized nations.
Service sector has become the main contributor to the GDP not merely in developed economies like U.S.A.(71%), Japan(60%) & U.K.(67%) but also in developing economies like China(33%), Indonesia(41%), Pakistan(50%) & Brazil(56%).