Report references

Industry
Service industry

The tertiary sector or service sector is the third of the three economic sectors of the three-sector theory.
The others are the secondary sector (approximately the same as manufacturing), and the primary
sector (raw materials).
The service sector consists of the parts of the economy, i.e. activities where people offer their knowledge
and time to improve productivity, performance, potential, and sustainability, which is termed as 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 has long been 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.
It is sometimes hard to define whether a given company is part of the secondary or tertiary sector. And it is
not only companies that have been classified as part of that sector in some schemes; government and its
services such as police or military, and non-profit organizations such as charities or research associations
can also be seen as part of that sector.[1]
In order to classify a business as a service, one can use classification systems such as the United
Nations' International Standard Industrial Classification standard, the United States' Standard Industrial
Classification (SIC) code system and its new replacement, the North American Industrial Classification
System (NAICS), the Statistical Classification of Economic Activities in the European Community (NACE) in
the EU and similar systems elsewhere. These governmental classification systems have a first-level
hierarchy that reflects whether the economic goods are tangible or intangible.
For purposes of finance and market research, market-based classification systems such as the Global
Industry Classification Standard and the Industry Classification Benchmark are used to classify businesses
that participate in the service sector. Unlike governmental classification systems, the first level of market-
based classification systems divides the economy into functionally related markets or industries. The second
or third level of these hierarchies then reflects whether goods or services are produced.

Theory of progression[edit]
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 called tertiarisation.[2] The tertiary sector is now the
largest sector of the economy in the Western world, and is also the fastest-growing 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.[3]
Economies tend to follow a developmental progression that takes them from a heavy reliance on
agriculture and mining, toward the development of manufacturing (e.g. automobiles, textiles,
shipbuilding, steel) and finally toward a more service-based structure. The first economy to follow this
path in the modern world was the United Kingdom. The speed at which other economies have made the
transition to service-based (or "post-industrial") economies has increased over time.
Historically, manufacturing tended to be more open to international trade and competition than services.
However, with dramatic cost reduction and speed and reliability improvements in the transportation of

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 people and the communication of information, the service sector now includes some of the most
intensive international competition, despite residual protectionism.

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
Consulting
Gambling
Retail sales
Franchising
Real estate
Education
Financial services
Banking
Insurance
Investment management
Fast-moving consumer goods (FMCG)
Professional services
Accounting
Legal services
Management consulting
An industry made up of companies that primarily earn revenue through providing intangible products and
services.
Service industry companies are involved in retail, transport, distribution, food services, as well as other
service-dominated businesses. Also called service sector, tertiary sector of industry. See also primary
industry, secondary industry.

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Introduction
The services sector is not only the dominant sector in Indias GDP, but has also attracted
significant foreign investment flows, contributed significantly to exports as well as provided
large-scale employment. Indias services sector covers a wide variety of activities such as
trade, hotel and restaurants, transport, storage and communication, financing, insurance, real
estate, business services, community, social and personal services, and services associated
with construction.
Market Size
The services sector is the key driver of Indias economic growth. The sector contributed around
66.1 per cent of its Gross Value Added growth in 2015-16, thereby becoming an important net
foreign exchange earner and the most attractive sector for FDI (Foreign Direct Investment)

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inflows.! As per the first advance estimates of the Central Statistics Office (CSO), the services
sector is expected to grow at 8.8 per cent in 2016-17.
According to a report by leading research firm Market Research Store, the Indian
telecommunication services market is expected to grow by 10.3 per cent year-on-year to reach
US$ 103.9 billion by 2020.
The Indian digital classifieds industry is expected to grow three-fold to reach US$ 1.2 billion by
2020, driven by growth in horizontal classifieds like online services, real estate and
automobiles.#
Out of overall services sector, the sub-sector comprising financial services, real estate and
professional services contributed US$ 305.8 billion or 20.5 per cent to the GDP. The sub-
sector of community, social and personal services contributed US$ 188.2 billion or 12.6 per
cent to the GDP.
Investments
The Indian services sector which includes financial, banking, insurance, non-
financial/business, outsourcing, research and development, courier and technical test analysis,
has attracted the highest amount of FDI equity inflows in the period April 2000-December
2016, amounting to about US$ 58.345 billion which is about 17.99 per cent of the total foreign
inflows, according to the Department of Industrial Policy and Promotion (DIPP).
Some of the developments and major investments by companies in the services sector in the
recent past are as follows:

FM Logistic Asia, outlined plans of investing around EUR 50 million (US$ 56.14 million) in India in the next four years,
to contribute to a better efficiency of logistics market in the country.
Caisse de Dpt et Placement du Qubec (CDPQ), Canadas second largest pension fund, plans to invest around
US$ 155 million to acquire a minority stake in TVS Logistics Services Limited, a privately held subsidiary of the TVS
Group.
WNS Global Services has made an announcement to acquire Denali Sourcing Services for US$ 40 million, with the
aim of improving its sourcing and procurement capabilities.
Samsung India has expanded its service network to over 6,000 talukas across 29 states and seven union territories in
India, by introducing over 535 service vans equipped with engineers, key components, diesel generator (DG) sets
and key equipment, for providing quick response and on-spot resolution.
Uber Technologies Inc plans to launch UberEATS, its food delivery service to India, with investments made across
multiple cities and regions, as per Mr Allen Penn, Head, Asia-Pacific, UberEATS.
International Finance Corporation (IFC), the investment arm of World Bank, plans to invest around US$ 10 million
Bengaluru-based online freight-booking service provider Zinka Logistics, which will be used to expand Zinka's service
offerings and further technology development.
Reliance Jio Infocomm Ltd. and Uber have announced a strategic partnership, which will enable Uber riders to pay
for their rides using JioMoney.
The domestic and foreign logistic companies are optimistic about prospects in the logistics sector in India, and are
actively making investments plans to improve earnings and streamline operations.
Online food ordering and delivery service firm Swiggy, owned by Bundl Technologies Private Limited, has raised US$
15 million in a fresh funding round led by Bessemer Venture Partners along with existing investors SAIF Partners,
Norwest Venture Partners, Accel Partners, and Apoletto Asia.
Factset, a US-based financial data and analytics firm, plans set up its largest global office at Divyasree Orion Special
Economic Zone (SEZ) in Gachibowli, Hyderabad.
LogixHealth Private Limited, a wholly-owned subsidiary of LogixHealthInc, USA, plans to invest around US$ 15
million and hire 1,000 people for its upcoming facility in Coimbatore.

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 Meru Cab Company Pvt Ltd, the Mumbai-based radio cab service, has raised Rs 150 crore (US$ 22.37 million) from
Brand Capital, the investment arm of Bennett Coleman and Co, which will be used to fund advertising and provide
user incentives including discounts and loyalty schemes.
SSG Capital Management Group, a Hong Kong based Private Equity (PE) investor, has acquired a 40 per cent stake
in the logistics company Future Supply Chain Solutions (FSC), for Rs 580 crore (US$ 86.5 million) from existing
shareholders including Future Retail (FRL) and Fung Group, promoted by billionaire Victor Fung.
Vistra Group Ltd, a Hong Kong-based professional services provider, has acquired IL&FS Trust Company Ltd, Indias
largest independent corporate trust services provider, which will enable Vistra to expand the platform to provide a
broader suite of corporate and fiduciary services and thereby gain a foothold in the Indian corporate services market.
IcertisInc, a contract management software maker for enterprises based out of Pune and Mumbai in India, has raised
US$ 15 million in series B round of funding from Ignition Partners and Eight Roads Ventures, which will be used to
invest in marketing and expand its global operations.
OfBusiness, an online marketplace for business-to-business (B2B) commerce, has raised US$ 5 million in series A
funding round led by Matrix Partners India, which will be used to expand the team and build a technology platform for
small and medium enterprises (SMEs).
Credit Analysis and Research (CARE Ratings) has signed Memorandum of Understanding (MoU) with Japan Credit
Rating Agency, Ltd (JCR) to collaborate with each other as strategic business partners.
Shuttl, an Indian bus aggregator platform headquartered in Gurgaon, has raised US$ 20 million in Series A funding
from Lightspeed, Sequoia India and Times Internet Ltd.
Indian logistics platform Rivigo has raised US$ 30 million in debt and equity in Series B financing round, led by SAIF
Partners. The firm aims to use the raised funds to achieve its target of scaling 10 times in the next 12 months.
Taxi service aggregator Ola plans to double operations to 200 cities. The company, which is looking at small towns
for growth, also plans to invest in driver eco-system, such as training centers and technology upgrade, besides
adding 1,500 to 2,000 women drivers as part of its pink cab service by women for women.

Government Initiatives
The Government of India recognises the importance of promoting growth in services sectors
and provides several incentives in wide variety of sectors such as health care, tourism,
education, engineering, communications, transportation, information technology, banking,
finance, management, among others.
Prime Minister Narendra Modi has stated that India's priority will be to work towards trade
facilitation agreement (TFA) for services, which is expected to help in the smooth movement of
professionals.
The Government of India has adopted a few initiatives in the recent past. Some of these are as
follows:

The Ministry of Electronics and Information Technology has launched a services portal, which aims to provide
seamless access to government services related to education, health, electricity, water and local services, justice and
law, pensions and benefits, through a single window.
The Government of India plans to significantly liberalise its visa regime, including allowing multiple-entry tourist and
business visas, which is expected to boost India's services exports.
Mr Ravi Shakar Prasad, Minister of Communication and Information Technology, announced plan to increase the
number of common service centres or e-Seva centres to 250,000 from 150,000 currently to enable village level
entrepreneurs to interact with national experts for guidance, besides serving as a e-services distribution point.

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 The Central Government is considering a two-rate structure for the goods and service tax(GST), under which key
services will be taxed at a lower rate compared to the standard rate, which will help to minimize the impact on
consumers due to increase in service tax.
The Reserve Bank of India (RBI) has allowed third-party white label automated teller machines (ATM) to accept
international cards, including international prepaid cards, and has also allowed white label ATMs to tie up with any
commercial bank for cash supply.

Road Ahead
Services sector growth is governed by both domestic and global factors. The Indian facilities
management market is expected to grow at 17 per cent CAGR between 2015 and 2020 and
surpass the $19 billion mark supported by booming real estate, retail, and hospitality sectors.
The performance of trade, hotels and restaurants, and transport, storage and communication
sectors are expected to improve in FY17. The financing, insurance, real estate, and business
services sectors are also expected to continue their good run in FY17.
Exchange Rate Used: INR 1 = US$ 0.015 as on February 9, 2017
What is the 'Service Sector'
The service sector produces intangible goods, more precisely services instead of goods, and
according to the U.S. Census Bureau, it is comprised of various service industries including
warehousing and truck transportation services; information sector services;
commodities, securities and other investment services; professional, technical and scientific
services; waste management services; health care and social assistance services; and arts,
entertainment and recreation services. Countries with economies centered around the service
sector are considered more advanced than industrial or agricultural economies.

BREAKING DOWN 'Service Sector'

Examples of service sector jobs include housekeeping, tours, nursing and teaching. By contrast, individuals employed in the
industrial or manufacturing sectors produce tangible goods, such as cars, clothes or equipment.

In terms of countries that place heavy emphasis on the service sector, the United States, the
United Kingdom, Australia and China rank among the top. In the United States, the Institute for
Supply Management (ISM) produces a monthly index that details the general state of business
activity in the service sector. This index is regarded as a metric for the overall economic health
of the country because approximately two-thirds of U.S. economic activity occurs in the service
sector.

Three-Part Economy
Also called the tertiary sector, the service sector is the third piece of a three-part economy. The
first economic sector, the primary sector, covers the farming, mining and agricultural business
activities in the economy. The secondary sector covers manufacturing and business activities
that facilitate the production of tangible goods. The service sector, though classified as the
third economic sector, is responsible for the largest portion of the economys business activity.
Businesses in this sector are rapidly placing more focus on what is becoming known as the
"knowledge economy," or the ability to surpass competitors by understanding what target
customers want and need, and operate in a way that meets those wants and needs quickly
with minimal cost.

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Technology in the Service Industry
Technology, specifically information technology systems, is shaping the way businesses in the
service sector operate. In nearly all industries within the sector, businesses institute technology
to bolster production; increase speed and efficiency; and cut down on the number of
employees required for operation. This cuts down on costs and improves incoming revenue
streams.

The Future of the Service Sector

As of 2015, the growth of the service sectors in China and the United States has seen
significant decline. Analysts are closely watching China over concerns that slugging demand
trends in the country will affect economic growth globally. The service sector in the United
States, while showing signs of a noticeable slow down through the fourth quarter of 2015, still
has a steady amount of growth.

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Gdp contribution
http://statisticstimes.com/economy/sectorwise-gdp-contribution-of-india.php

history of company b2b

https://www.scribd.com/document/88533284/Superseva-Building-a-successful-service-business
quality policy iso 9001:2008
area of operation
organisation structure
service profile
competitor information
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future growth and prospects
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