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1. Facultyofmanagementstudies, Udaipur
TOPICS – INTERNATIONALIZATION OF SERVICES FIRMS
PRESENTED TO – DR. PRERNA BHATI
PRESENTED BY – NIKHIL RAO (25)
RAHUL PATEL (32)
SHARAD PALIWAL (43)
SURAJ PALIWAL (47)

2. What is Internationalization?
• The growing significance of trade, relations, alliances,
etc. between or among nations.
• The process of increasing involvement of enterprises in
international markets.

3. What is a Service Firm?
• A service firm is a business that makes its
facilities available to others for a fee.
• Examples:
▫ Wipro
▫ Infosys
▫ Tech-Mahindra
▫ IBM
▫ Satyam BPO Limited

4. Types of Service Firms
• Professional Service Firms
• Financial Service Firms

5. Professional Service Firms
• Firms of infrequent, technical or unique
functions performed by independent contractors
or by consultants.
• Provides services like
Accountancy,
business consultancy etc.

6. Financial Service Firms
• Financial service firms are those who provide
economic services i.e managing money.
• Includes banks, insurance companies, consumer
finance companies, stock brokerages etc.
• Examples: Bajaj capital limited, Foreign
exchange services.

7. Internationalization of Service Firms
• Firms become international when they extend their
activities into overseas markets.
• Greater is their involvement, greater is the level of
internationalization.
• Internationalization appears to be the dominant
strategic objective for many large business service firms
seeking continued growth.

8. • Firms initially tend to extend their geographical reach in
the national market prior to international expansion.
• In some cases, firms become internationally active prior
to extension to national coverage.

9. Modes of Internationalization
4 modes of internationalization:
• Mode I:
▫ It refers to those cases in
which the service provider
is located in one country and
the consumer in another,
without any of both needing
to move.

10. • Mode II:
▫ Refers to consumption of a given service abroad.
▫ It includes tourism, travel,
cultural events etc.

11. • Mode III:
▫ Refers to cases in which companies of a given country
provide services in another one, either through subsidiaries,
by participating in local companies or setting up own staff.

12. • Mode IV:
▫ It requires presence of natural
persons and relates to those
cases in which an individual
goes to another country to
provide service to consumers.

13. Internationalization of Indian Service
Firms
• Contribution to Indian economy: 55.2% share in GDP
• Services exports increase:
2019-20 : 17.27%
2020-21 : 21.34%
2021-22 : 27.0%

14. Barriers in the way of internationalization of
service firms
• Using inputs for producing services
• Promoting the offered product
• Distribution of services to users
• Services sale

15. Ways to overcome barriers
• Providing international levels of service quality.
• Legal formalities.
• Partnerships and alliances.

16. Conclusion
• Internationalization of service firms a good one
provided a firm takes into consideration both
the positive and negative aspects.
• A good platform for local firms to work at global
level.