A Brief Analysis of the Service Industry

Over the last few years, the service industry has been growing at a very rapid pace due to the need of it and also due to the fact that there are a lot of jobs being created by it. Service industry usually delivers tangible goods to customers, and it does not create any physical thing that can be shown in the form. People who are hired in this sector usually perform tasks, depending on their skill set. Accountancy, health care, information technology, and hospitality are some of the areas involved with the service industry. These industries employ a lot of people, and there is usually a knack for people to get associated in them. However, there are two distinct types of organizations in this business that are discussed below.

  • Equipment-based service firms – There are many types of firms who final aim is to deliver services to customers. Equipment-based firms use machines and other technological interventions to carry out tasks required by customers. Here, skilled as well as unskilled labor may be needed to complete the tasks, depending upon the industry. For example, in dry cleaning services, unskilled labor is needed whereas in information technology, and airline carriers, skilled labor, and trained personnel is needed. There are also equipment-based jobs that may not need any human intervention like a vending machine.
  • People-based service firms – People-based service firms may not require machinery for delivering a service. Rather, it is the knowledge and learning that is there in the workforce that helps in delivering the service. Again, people-based service firms can be skilled as well as unskilled. The skilled firms include services like security, janitorial or landscape maintenance, etc. Skilled service firms may include law and management consulting firms, accounting firms, etc.

The US Bureau of Labor Statistics has maintained that this sector is poised for exponential growth in the coming years and therefore, there is a lot of optimism towards the service industry.

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