ITFT Global sc

Global Scenarioof Service Industry…..

7’ Continents of the World

Sectors of Economy

• The TERTIARY sector

• The SECONDARY sector (manufacturing)

• The PRIMARY sector (agriculture, fishing, and

extraction such as mining).

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.

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.

The tertiary sector is now the largest sector of

the economy in the world, and is also the

fastest-growing sector.

HOW?????

Reasons…• Rapid Economic Growth

• Increase in FDI

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

Developing Country (Malaysia)


Agriculture 12%

Industry 40%

Services 48 % (est.)

12%

40%

48%

Malaysia: Sector Wise GDP share in 2011


Wealth Rich Country (Saudi Arabia)


Agriculture 2.1%

Industry 67.7%

Services 30.4% (est.)

2%

68%

30%

Saudi Arabia: Sector Wise GDP share in 2011


Least Developed Country (South Africa)


Agriculture 2.5%

Industry 31.6%


2%

32%

66%

South Africa: Sector Wise Share in 2011


ChinaSector Wise GDP in 2011

Agriculture 10.1%

Industry 46.8%


10%

47%

43%

China : Sector Wise GDP Share in 2011


SAARC Country (India)


Agriculture 18.1%

Industry 26.3%

Services 55.6%

18%

26%56%

India: Sector Wise GDP Share in 2011


Some Facts and Figures:WORLD SCENARIO

• As economy shifts from developing to developedstage, they will show more and more shift towardservices

• Today, the fastest growing segments of the USeconomy is services.

• In 1948 54% of the GDP of US was generated byservices which is 80% now Employment in this sectorwhich was 55% in 1950 is now 83%

Cont..

• Today service sector dominates the economics ofmany developed nations. As countries develop therole of agriculture in the economy declines and thatof services increase.(china has 50% GDP from service,35% from industry, and 15%from agriculture)

• During recession it has been seen that service outputdeclines less than industrial output – the serviceemployment is less sensitive to business cyclefluctuation

• Globalization as strategy for service firm is becomingmore important

Education

ITFT Global sc