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
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.
Colonial period Localized level National level Post Independence but before liberalization After liberalization
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.
free trade was encouraged, railways and telegraphs, civil service. With industrialization and Indias 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.
From reports of service trade & domestic regulation in india,2007 Before liberalization Services was the residual sector drawing refugees from agriculture
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%.
year % share of nation employment in services1965 18.11980 18.91990 24.52000 23.8
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
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.
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
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
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
Greater variability in operational inputs& outputs Balancing demand & supply may be vital strategy Time factor is key Delivery systems include electronic & physical channels
Services Directed at people Tangible: people processing ( airlines, hospitals, haircutting, fitness centers) Intangible : Mental stimulus processing ( broadcasting, consulting, education, psychotherapy)
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
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
information storage access processing dissemination
Local storage- hard-disc, CD drives tape drives. Network storage Various forms of information storage text, image, audio, tables etc
Local processing Network processing Data processing Algorithmic Image sampling Filtering Authenticating Security
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
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
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
Technology Information, Forecasting and Assessment Council
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 worlds largest credit card users by 2000 AD.
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.
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.
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.
Smart phones with screen built-in modems and programmable microprocessors let the customer access a variety of financial services from home
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.
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.
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.
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.
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.
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.
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
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
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
services services Web hub customerservices services Web cloud
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