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How is service industry different?

Service sector also known as the tertiary sector falls in the 3rd tier of the three sector economy in our country. We all know that there’s a difference between a product and a service. Both the industries also work in a slightly different way. The service sector produces intangible goods; to be precise it sells services instead of tangible goods. Service industry includes IT, hospitality, media, transportation, healthcare, education, professional services, etc. The individuals hired in this industry are to perform tasks and not sell anything. 

Today, this industry is making complete use of the existing technologies and is in a continuous process of innovating it. Businesses in this sector want to excel and outperform their competitors so they are using smart technology for understanding their audience, their needs, behavior, etc. They are bringing solutions after analysis and providing their audience with what they actually need. Technology is helping them to boost their production, increase efficiency and be quick. They are turning automative. It is also helping them to cut down on some costs and garner revenue. Machines have replaced employees, but still there’s a need of them in businesses. This type of business under the service industry is known as the equipment based business. 

There’s another type of business under the service industry and that is People based business. People, who have the right skill set and are professionals in their respective domain, perform the tasks and provide services. For e.g. Doctors, lawyers, managers, accountants, etc, they are all educated and provide their services to the people. 

But due to the growing technologies in the market, the service industry is soon going to need less or zero amount of employees. The choice still lies in the hands of the business owners if they want to completely rely on technologies or humans.