The Services SectorThe Services sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy
The activities under the purview of the service sector are quite diverse. Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry. The various sectors that combine together to constitute service industry in India are:
Our Unique Perspective: The Human Factor
Aegis Global Academy identifies and amplifies the human side of the services business to reach the conclusion that the next step in the evolution of the services economy is what is called the "experiential economy". As the price of services gets more and more competitive through globalization, and as skill sets get enhanced with greater price, product, and promotion focus, the key factor that can influence decision-making in the new economy will be the experience of the customer at every point of interaction. The booming services sector is soon to reach a ceiling in cost and labor arbitrage. Much of this boom has been relatively "jobless". The rise in services share in GDP has not accompanied by proportionate increase in the sector's share of national employment. Using information and communication technology, companies have vastly reduced the number of staff they need. Many organizations have merged to form much "leaner" businesses capable of extracting more profit from a wider customer base. The key to this process is gaining information about their customers and constantly communicating new products to them. However, services companies are facing a myriad set of problems, among them-managing the skills and talent gap; ensuring that the people not only have the skill set for the job but also the mindset to service the client well; and that they are serving the right client at any given time. Progressive companies are already moving in the direction of integrating a "customer-experience management" mind-set among their employees and in the sales and engagement processes. Indian Service Sector Information Technology Industry The Information Technology (IT) industry has achieved phenomenal growth after liberalization. The industry has performed exceedingly well amidst tough global competition. Being a knowledge-based industry, India has been able to leverage the global markets due to the huge pool of engineering talent available and the proficiency in English language among the middle class. ITeS Sector The ITeS and BPO sectors have also leveraged the global changes positively to emerge among the most prominent industries. Some of the services covered by the ITeS industry include the following:
Retail Prior to liberalization, India had one of the most underdeveloped retail sectors in the world. After liberalization, the scenario changed dramatically. Organized retailing with prominence of self-service and chain stores has changed the dynamics of retailing. In most of the tier I and tier II cities supermarket chains mushroomed, catering to the needs of vibrant middle class. This indirectly contributed to the growth of the packaged food industry and other consumer goods. With the advent of the Internet, retailers are facing a very powerful consumer that demands anything, anywhere, anytime. Customer loyalties are changing and price is no longer the only criteria to attract customers. Customers want the most out of shopping experience - personalized attention, personalized promotions and personalized advertising. Accordingly, companies like Future Group who have a strong presence in Retail are seeking employable candidates who can meet the standards of a superior customer experience. Banking And Insurance The banking sector in India is undergoing great changes. Foreign banks are gaining greater access to the domestic market, both as subsidiaries and branches, and are on the lookout for employable candidates who can match their cultural values, quality processes, and be a good fit in a globalized environment.
A few years ago, HDFC Bank had a small pool of 1,300 employees; today, it has 35,000 - a 27-fold increase. Private banks, such as HDFC and ICICI, and even smaller ones like Kotak bank, are doubling or tripling their manpower every year, setting off recruitment and hiring explosions in tier 2 and tier 3 cities.
Salaries in banking are projected to grow by 17 percent this year. The rush for recruitment in banking reflects in the current entry-level salaries, which are higher than the median salaries across other sectors. The annual entry-level salary ranges from Rupees 2.62 lakh in the northern parts of the country to Rupees 4.64 lakh in the South.
The banking sector has the highest annual median salary for those with more than 13 years of experience - Rs 45 lakh in the North and Rs 18.75 lakh in the South. The sector also offers wide variety of benefits and perks to employees.
The Insurance Regulatory and Development Authority Act 1999 (IRDA Act) allowed the participation of private insurance companies in the insurance sector. The Indian life insurance industry is the world's fifth largest market at US$41 billion. It is also growing at a rapid pace of 32% to 34% annually, according to the Life Insurance Council. The industry has received foreign direct investments to the tune of US$525.6 million. The Indian insurance industry has ample room for growth as rural penetration in still below 2%. The huge untapped rural market is expected to grow four-fold by 2015.
Some of the prominent insurance companies are:
Telecom Industry Telecommunications businesses are engaged in the most fiercely competitive arena in India, with a huge market share open to capture. Key strategies that telecom companies use are to create customer experiences that enhance loyalty and retention. They want to identify, acquire, and retain the most profitable customers through accessing, gathering and harnessing information about customers' buying histories. The need is to provide superior services at lower costs and provide value-added services quickly to make a mark amongst the competition. Ensure that you are part of the booming services industry. Join the Institute of Customer Experience Management and be employment-ready from day-one on the job. Apply now. |
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