The World of Global Service Management

The World of Global Service Management

We are witnessing the greatest labour migration since the industrial revolution. This migration from agriculture and manufacturing to services is both invisible and largely global in scope. The migration is driven by global communications, business and technology growth, urbanization, and low-cost labour. Service industries are leaders in every industrialized nation, they create new jobs that dominate national economies, and have the potential to enhance the quality of life of everyone. Many of these jobs are for high-skilled knowledge workers and have the greatest projected growth in professional and business services.

It is learned that modern industrialized economies are dominated by employment in the service sector industries. This represents a natural evolution of economies from preindustrial  to industrial and finally to postindustrial societies. Furthermore, the economic activity of society determines the nature of how people live and how the standard of living is measured. The nature of the service sector is explored in terms of employment opportunities, contributions to economic growth and stability, and source of economic leadership. The observation that our postindustrial society is now evolving into an experience economy is discussed for both consumer and business services. The growth of the service sector is attributed to innovation, social trends, and information technology (e.g., Internet).

Services are economic activities offered by one party to another, most commonly employing time-based performances to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility. In exchange for their money, time and effort, service customers expect to obtain value from access to goods and services such as labour, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved.

Services are central to the economic activity in any society. Infrastructure services, such as transportation and communications, are the essential links between all sectors of the economy, including the final consumer. In a complex economy, both infrastructure and distribution services function as intermediaries and as the channel of distribution to the final consumer. Infrastructure services are a prerequisite for an economy to become industrialized; therefore no advanced society can be without these services.

In an industrialized economy, specialized firms can supply business services to manufacturing firms more cheaply and efficiently than manufacturing firms can supply these services for themselves. Government services play a critical role in providing a stable environment for investment and economic growth. Services such as public education, health care, well maintained roads, safe drinking water, clean air, and public safety are necessary for any nation’s economy and people to prosper.

Thus, it is imperative to recognize that services are not peripheral activities but rather integral parts of society. They are central to a functioning and healthy economy and lie at the heart of that economy. Finally, the service sector not only facilitates but also makes possible the goods-producing activities of the manufacturing sectors. Services are the crucial force for today’s change toward a global economy.