Global scenario of service industry

1. Global Scenario
of Service Industry…..

2. 7’ Continents of the World

3. Sectors of Economy
• The TERTIARY sector
• The SECONDARY sector (manufacturing)
• The PRIMARY sector (agriculture, fishing, and
extraction such as mining).

4. The service sector consists of the
“Soft
parts of the economy.
• Activities where people offer their knowledge and
time to improve productivity, performance,
potential, and sustainability.

5. Services involve…….
• The transport, distribution and sale of goods
from producer to a consumer, as may happen
in wholesaling and retailing
• may involve the provision of a service, such as
in pest control or entertainment.

6. The tertiary sector is now the largest sector of
the economy in the world, and is also the
fastest-growing sector.
HOW?????

7. Reasons…
• Rapid Economic Growth
• Increase in FDI

8. Developed Country (USA):
Sector Wise GDP in 2011
Agriculture 1.2 %
Industry 22.1%
Services 76.7 % (est.)
1%
22%
77%
USA: Sector Wise GDP Share
in 2011
Agriculture Industry Service

9. Developing Country (Malaysia)
Sector Wise GDP in 2011
Agriculture 12%
Industry 40%
Services 48 % (est.)
12%
40%
48%
Malaysia: Sector Wise GDP share
in 2011
Agriculture Industry Service

10. Wealth Rich Country (Saudi Arabia)
Sector Wise GDP in 2011
Agriculture 2.1%
Industry 67.7%
Services 30.4% (est.)
2%
68%
30%
Saudi Arabia: Sector Wise GDP
share in 2011
Agriculture Industry Service

11. Least Developed Country
(South Africa)
Sector Wise GDP in 2011
Agriculture 2.5%
Industry 31.6%
Services 65.9% (est.)
2%
32%
66%
South Africa: Sector Wise Share in
2011
Agriculture Industry Service

12. China
Sector Wise GDP in 2011
Agriculture 10.1%
Industry 46.8%
Services 43.1% (est.)
10%
47%
43%
China : Sector Wise GDP Share
in 2011
Agriculture Industry Service

13. SAARC Country (India)
Sector Wise GDP in 2011
Agriculture 18.1%
Industry 26.3%
Services 55.6%
18%
26%
56%
India: Sector Wise GDP Share
in 2011
Agriculture Industry Service

14. Some Facts and Figures:
WORLD SCENARIO
• As economy shifts from developing to developed
stage, they will show more and more shift toward
services
• Today, the fastest growing segments of the US
economy is services.
• In 1948 54% of the GDP of US was generated by
services which is 80% now Employment in this sector
which was 55% in 1950 is now 83%

15. Cont..
• Today service sector dominates the economics of
many developed nations. As countries develop the
role of agriculture in the economy declines and that
of services increase.(china has 50% GDP from service,
35% from industry, and 15%from agriculture)
• During recession it has been seen that service output
declines less than industrial output – the service
employment is less sensitive to business cycle
fluctuation
• Globalization as strategy for service firm is becoming
more important