2. SERVICE SECTOR
ctor

3.  Service Sector roots & growth
 Service Sector :definition today
 Understanding Information Technology
 TiFAC
 A blend of IT& SS
 Key issues in the perfect blend
 Peeping in future: global village

5. From
Times of
India
2007
 India’s recent spectacular rate of economic
growth, combined with the sheer size of its
population, means that it is beginning to
take its place as one of the key players in the
global economy.
 One way in which India stands out from
other Asian economies is in the better
performance of its service sector.

6.  Colonial period
 Localized level
 National level
 Post Independence but before liberalization
 After liberalization

7.  Chougula
 Mahar (Watchman )
 Sutar ( Carpenter )
 Lohar ( Blacksmith )
 Kumbhar ( Potter )
 Chambhar ( Shoe maker )
 Nhawi ( Barber )
 Sonar ( Goldsmith )
 Joshi ( village astrologer )
 Parit (Washerman)
 Gurav (Idol-Dresser)
 Koli ( Water Carrier )

8.  The handicrafts industry went bankrupt
under the economic policies of the British
Raj.
 A revival for domestic-made products was
started with the boycott of British products
through the Swadeshi movement.
 India was a large market for quality
European goods during this time.

9.  free trade was encouraged, railways and
telegraphs, civil service.
 With industrialization and India's
colonization, there was growth in production
and trade in Britain.
 economy was one of the poorest in the
developing world.
 With the absence of industrial development
and agriculture not being able to feed a
growing population, the country had one of
the lowest life expectancies in the world.

10. From reports of service
trade & domestic
regulation in india,2007
 Before liberalization Services was the
residual sector drawing refugees from
agriculture

11.  India’s external
liberalization S e r v ic e s a s % o f G D P
 domestic economic 80
75
reforms 70
 the rise of a global 65
60
market for skilled 55
services facilitated by 50
45
information technology 40
35
makes itself felt, share of 30
services in India’s GDP 1996 1997 1998 1999
2000
grew from just over 40%
2001 2002 In d ia
2003
2004
2005
to about 54%.

12. year % share of nation employment
in services
1965 18.1
1980 18.9
1990 24.5
2000 23.8

13.  share of agriculture in Indian Economy
declined
 growth in output in services in India, recent
times has mostly come from the rapid
development of skill intensive services in the
IT and professional services segments-
oriented towards the external market

15.  Any act ,performance or experience that one
partly can offer another; one that is
essentially intangible, and does not result in
the ownership of anything. Its production
may or may not tied to a physical product.

16.  Distribution Services : wholesale & retail
trade, transport & Storage , communications
 Social services: Health & community
services, Education, Government,
Administration & Defense
 Producer services: Property & Business
services, Finance, Insurance
 Utility & Construction services: Electricity ,
Gas & Water ,Construction

17.  Trade
 Hotels and Restaurants
 Railways
 Other Transport & Storage
 Communication (Post, Telecom)
 Banking
 Insurance
 Dwellings, Real Estate
 Business Services
 Public Administration; Defence
 Personal Services
 Community Services
 Other Services

18.  Casino Hotels
 Continuing Care Retirement Communities
 Diagnostic Imaging Centers
 Diet & Weight reducing centers
 Environmental consulting
 Golf Courses & Country Clubs
 Hazardous Waste collection
 HMO Medical centers
 Industrial Design Services
 Investment Banking & Securities Dealing
 Telemarketing Bureaus

19.  An act or performance offered by one party
to another
 An economic activity that does not result in
ownership
 A process that creates benefits by facilitating
a desired change in
 Customer themselves
 Physical possessions
 Intangible assets

20.  Greater variability in operational inputs&
outputs
 Balancing demand & supply may be vital
strategy
 Time factor is key
 Delivery systems include electronic &
physical channels

21.  Services Directed at people
 Tangible: people processing ( airlines, hospitals,
haircutting, fitness centers)
 Intangible : Mental stimulus processing
( broadcasting, consulting, education,
psychotherapy)

22.  Services Directed at Possessions
 Tangible :Possession processing ( freight ,repair,
cleaning, landscaping, retailing, recycling)
 Intangible : Information Processing ( accounting,
banking, insurance, legal, research)

24.  Information technology (IT), as defined by
the Information Technology Association of
America (ITAA), is "the study, design,
development, implementation, support or
management of computer-based information
systems, particularly software applications
and computer hardware."IT deals with the
use of electronic computers and computer
software to convert, store, protect, process,
transmit, and securely retrieve information

25.  When computer and communications
technologies are combined, the result is
information technology, or "infotech".
Information technology is a general term
that describes any technology that helps to
produce, manipulate, store, communicate,
and/or disseminate information

26. information
storage
access
processing
dissemination

27.  Local storage-
 hard-disc,
 CD drives
 tape drives.
 Network storage
 Various forms of information storage
 text, image, audio, tables etc

28.  Local
 Network
 Communication
 Wired- copper, optical fiber
 Wireless- RF, Satellite

29.  Local processing
 Network processing
 Data processing
 Algorithmic
 Image
 sampling
 Filtering
 Authenticating
 Security

30.  Various display devices
 monitors, printers, LCD screens, LED screens,
mobile screens - size and resolution issues
 Audio Devices, virtual devices
 Creative information dissemination
 Embedding graphics, video, audio etc

31.  Radically alter ways in which service firms do
business with customers ( new services, more
convenience), Behind the scenes ( re engineering ,
new value chains)
 Create relational databases about customer needs
and behavior, mine data banks for insights
 Leverage employee capabilities and enhance
mobility
 Centralize customer service –faster and more
responsive
 Develop national/ global delivery system
 Create new, internet based business models

32. All services can benefit from IT,
but mental stimulus processing and
information processing services have most
to gain
 Remote delivery of information based
services “ anytime , anywhere”
 New service feature through web sites,
email, internet ( information, reservations)
 More opportunities to self service
 New types of services

33. Technology Information, Forecasting and Assessment Council

34.  Technology Information, Forecasting and
Assessment Council (TIFAC), an autonomous
organization under the aegis of the
Department of Science & Technology (Govt.
of India) plays a vital role in technology
development and promotion in India through
its various programs.

35.  A national level major long-term technology
forecasting and assessment exercise :
encompassing various technology areas
 A detailed survey of key areas in major
infrastructure, advanced technologies and
technologies with socio-economic
implications was taken up.
 In a span of two years, over 5000 area
experts from the industry, Government, R&D
agencies and academia were brought
together for a thorough survey of shared
opinion in select areas.

36.  Formulation of concerted action plan
 Use of technology forecasting techniques
e.g. brainstorming, scenario writing, Delphi,
Nominal group techniques (NGT)
 Formation of the perspective/scenario
reports of the panels, Delphi responses, NGT
ranking
 suggestions for policy guidelines, strategies
and action-plans for Government, NGOs,
industry, R &D institutes and academia to
realize the vision for India for 2020 AD.

37.  agro-food processing,
 chemical industry,
 engineering industry,
 electronics, etc.,
&
 services sector due to its immense potential for
value-addition and employment generation.
&
 The services sector draws heavily on information
technology (IT) for its advanced applications.

38.  Covers a wide gamut of activities like
trading, banking and finance, infotainment,
real estate, transportation, security,
management and technical consultancy
among several others.
 The contribution from services sector today
stands over 54 per cent of the total GDP in
India.
 The sector currently employs close to 20
million people in India.

40.  For all the aforesaid areas, IT plays the
prime role in information processing, storage
and access with a view to providing improved
services to the consumers.

41.  Financial services have been the major users
of IT and communication technologies.
 IT expenditure by US banks has recorded a
compounded annual growth rate of 8.4 per
cent.
 The management information system (MIS),
distributed computing devices, open
systems, high-speed data networks (LAN
MAN, WAN, ISDN, etc.), related database
management services (RDBMS) have been
important development milestones in IT with
major impact on financial services.

42.  The development of optical fiber has greatly
improved the communication speed,
anticipated to touch 2 trillion bits per second
eventually.
 Packet switching transmission method like
asynchronous transfer mode achieving a
speed up to 622 million bits per second has
been the major breakthrough in
communication technology.

43.  CD-ROMS with storage capacity of 1.6 GB of
data have been instrumental in fast
information retrieval and access.
 Use of multimedia for storage of text,
graphics, video, sound, etc. has immensely
benefited the information storage system.
 All these technologies are used extensively
by the banking and financial services sector.

44.  ATMs, though operational in the country for
quite some time, are expected to make a big
head-way in India.
 It has been estimated that there are around
400,000 ATMs worldwide out of which
1,00,000 are located in Japan alone.
 ATMs are synonymous with credit cards; 578
million credit cards issued worldwide were
involved in a transaction of US $ 1092 billion
by June, 1993. India is poised to become one
of the world's largest credit card users by
2000 AD.

45.  The latest generation networked ATMs allow
the user to perform up to 150 kinds of
transactions ranging from simple cash
withdrawals and deposits, to fund transfer to
trading in stocks to buying mutual funds to
something mundane like payment of
electricity bills, booking air-tickets and
making hotel reservations.

46.  Multimedia technology has been quite
effective in bringing the banking services to
the door-step of its customers.
 The customer activated terminal (CAT) or
Kiosk is an interactive multimedia display
unit, housed in a small enclosure, typically
consisting of a computer workstation,
monitor, video disk player and a card reader.
 It allows the customers to browse through
information and use the available banking
services at their own speed.

47.  Some banks are thinking of establishing
'virtual' branches where a customer can walk
through the door, explore services by
touching parts of the screen and at any time
call up a member of the bank staff by video
conferencing.
 While the banks do not need to invest heavily
in real estate for setting up such a branch,
the customer gets the benefit of 'one-stop
banking' at a convenient location.

48.  Smart phones with screen built-in modems
and programmable microprocessors let the
customer access a variety of financial
services from home

49.  EDI typically denotes paperless financial
transactions across the locations.
 EDI is fast becoming the norm for inter-
company transactions and also for
procurement of bought out items from the
suppliers.
 The companies can now operate their bank
accounts through corporate banking
terminals in their own offices which are
linked to the bank computers.


50.  Companies can thus carry out transactions
like transferring funds, managing its cash
flow, opening letters of credit etc. without
any paper work.
 Singapore has established trade-net to
facilitate electronic submission of trade
documents by traders to various Govt.
agencies and the response of these agencies
to the sender. It has reduced document
processing time from one day to 15-30
minutes and the estimated saving are of the
order of $ 1 billion annually.

51.  Travellers' cheque meant 'pay-now-buy-
later' and credit cards had 'buy-now-pay-
later' advantages.
 EFTPOS or debit cards signify 'buy-now-pay-
now' but without cash transaction.
 The user presents his ATM card when he
buys goods and the EFTPOS system
immediately debits his bank account.

52.  The financial services sector is increasingly
using decision support systems (DSS) or
expert systems for functions such as credit
risk appraisal, forecasting loan
delinquencies, investment decisions, etc.
 One of the most promising developments in
this field is the use of 'neural network'
approach to build an expert system which
lets the software literally learn from
example and experience.

53.  Several banks today are using neural network
programs to detect credit card fraud. It is
also being used by some leading investment
banks to track stock price patterns and
predict their movements.

54.  The areas of advertising, media and
infotainment are interrelated and their
growth and momentum are closely linked
with economy, demography, life-style and
simultaneously with technological
innovations.
 The levels of literacy and poverty alleviation
also have direct bearing on mass media. And
again IT applications would have far reaching
impact on these services sectors.

55.  40 per cent of the key residential and
business markets across the USA would be
served by cable TV network based on optical
fiber .
 Most popular mass market services as
expected :
 Movies and music on demand Home shopping
Video games via network Participatory TV
Distinction between telephone and cable
entities are expected to become blurred

56.  Direct broadcast satellites (DBS) would
emerge as a potent delivery factor
 new products
 PCs for scheduling appointments or displaying an
electronic book
 Digital camera for still photographs stored on
disk for viewing and editing
 Multimedia CD player desired as a compact disk
attached to a TV

57.  Conscious approach for India in particular
 Continuous training & skill up gradation
 Security issues
 Confidentiality issues
 Legal issues due to virtual transactions
 Proper implementation programs &
technology management
 True professionalism

58. services
services
Web hub
customer
services
services
Web cloud

60.  Information Technology in Services Sector — A Vision For India
Soumitra Biswas Technology Information, Forecasting and Assessment
Council Department of Science & Technology,
 Integrating India’s Service Sector with the Global Economy
-An Overview of the Services Sector,Services Trade and Domestic
Regulation in India,New Delhi.
 http://www.Service Sector in India - Service Industry India, Indian Service
Sector.mht
 http://www.indiaonestop.com/serviceindustry.htm
 http://www.vibrantgujarat.com/detailed-sector-profiles/service-
sector.pdf
 http://www.indiainbusiness.nic.in/indian-economy.pdf