Services

Further information: Information technology in India and Business process outsourcing in India
India's services sector is the 12th largest in the world by nominal GDP, and fourth largest when
purchasing power is taken into account. The services sector provides employment to 27% of the
work force and is growing quickly, with a growth rate of 7.5% in 19912000, up from 4.5% in
195180. It has the largest share in the GDP, accounting for 57% in 2012, up from 15% in 1950.
[86]

Information technology and business process outsourcing are among the fastest growing

sectors, having a cumulative growth rate of revenue 33.6% between 1997 and 1998 and 2002
03 and contributing to 25% of the country's total exports in 200708. [92] The growth in the IT
sector is attributed to increased specialisation, and an availability of a large pool of low cost,
highly skilled, educated and fluent English-speaking workers, on the supply side, matched on the
demand side by increased demand from foreign consumers interested in India's service exports,
or those looking to outsource their operations. The share of the Indian IT industry in the country's
GDP increased from 4.8% in 200506 to 7% in 2008. [93] In 2009, seven Indian firms were listed
among the top 15 technology outsourcing companies in the world. [94]

Indida gdp 2012

1841710

china 10th 2010

china

Agr

17.4%

10

18.5

10.2

Indus

25.8

43.9

26.3

46.9

Service

56.9

46.1

43

43

Service sector
A service is the non-material equivalent of a good. Service provision is defined as an
economic activity that does not result in ownership, and this is what differentiates it from
providing physical goods. It is claimed to be a process that creates benefits by facilitating
either a change in customers, a change in their physical possessions, or a change in
their intangible assets. Service output is a component of the GDP of a nation. The service
sector includes (but is not limited to) farm and factory related activities.

The service sector, also called the tertiary sector, is one of the three parts of the economy in
the Three-sector hypothesis. This hypothesis breaks the economy into three main areas so it can
be better understood. The other two are the primary sector, which covers areas such
as farming, mining and fishing; and the secondary sector which covers manufacturing and
making things. The service sector provides a service, not an actual product that could be held in
your hand. Activities in the service sector include retail, banks, hotels, real
estate, education, health, social work, computer services, recreation, media,communications,
electricity, gas and water supply.[1]

The service sector is an important part of the economy. For example, in Australia in 2007, 85% of
all businesses were in the service sector.[1]. In 2009 there were more than nine million people
employed in the service sector in Australia, which was 86% of all jobs.[1] In India, there has been
a huge growth in service sector businesses which made up 55% of India's GDP in 20062007.
[2]

Computer software businesses in India are increasing at a rate of 35% per year.[2]

Increasingly service sector businesses need to focus on what is now being called the knowledge
economy.[3] They need to keep ahead of other businesses by understanding what it is their
customers want and be in a position to give it to them quickly and at low cost. One good example
of this are banks which have gone through enormous changes in recent years.
Using information and communication technology, banks have vastly reduced the number of
people they need to employ, and lowered the cost of providing bank service. For example,
an automated teller machine is able to provide basic banking services 24 hours a day, 7 days a
week, in many different places. Before this, banking services were only available from the bank
when it was open. Many banks and building societies have joined together to form much lower
cost businesses that can make more money from a wider customer base. The key to this process
is gaining information about their customers and constantly coming up with new services for
them. An example of a company trying to come up with a new service for customers is iCard,
which is looking at ways to link mobile phones to computers and social networking.

Service sector[edit]
The service sector consists of the "soft" parts of the economy, i.e. activities where people offer
their knowledge and time to improve productivity, performance, potential, and sustainability, what
is termed affective labor. The basic characteristic of this sector is the production
of services instead of end products. Services (also known as "intangible goods") include
attention, advice, access, experience, and discussion. The production of information is generally
also regarded as a service, but some economists now attribute it to a fourth sector,
the quaternary sector.
The tertiary sector of industry involves the provision of services to other businesses as well as
final consumers. Services may involve the transport, distribution and sale of goods from producer
to a consumer, as may happen in wholesaling and retailing, or may involve the provision of a
service, such as in pest control or entertainment. The goods may be transformed in the process
of providing the service, as happens in the restaurant industry. However, the focus is on people
interacting with people and serving the customer rather than transforming physical goods.
For the last 100 years, there has been a substantial shift from the primary and secondary sectors
to the tertiary sector in industrialised countries. This shift is calledtertiarisation.[1] The tertiary

sector is now the largest sector of the economy in the Western world, and is also the fastestgrowing sector.
In examining the growth of the service sector in the early Nineties, the globalist Kenichi
Ohmae noted that:
"In the United States 70 percent of the workforce works in the service sector; in Japan,
60 percent, and in Taiwan, 50 percent. These are not necessarily busboys and live-in
maids. Many of them are in the professional category. They are earning as much as
manufacturing workers, and often more.[2]

Examples of Tertiary sector industries[edit]

Examples of tertiary industries may include the following:

Entertainment

Government

Telecommunication

Hospitality industry/Tourism

Mass media

Healthcare/hospitals

Public health

Information technology

Waste disposal

Financial services

Banking

Insurance

Investment management

FMCG

Professional services

Accountancy

Legal services

Management consulting

Teritiary output 2014 at purchasing power parity in billions USD

Us

13918

Eu

12211

China 6581
India 3586 4th
CG