The significance of services can be understood with the help of the following points:
1) Upward Trend in the Disposable Income: Since the last ten years, the Indian customers are exhibiting an upward trend in disposable income. The transformation of the economy is resulted due to the development of corporate sectors. If there are many job opportunities for an individual, it will offer higher chances of earning to masses, and as the earnings will increase, it will result in more consumption.
Thus, increased disposable income is resulted due to the positive developments in the development sectors. There is a prompt increase in the demand when someone has an increment in his income irrespective of the inflation.
2) Increasing Specialization: The current era is of specialization, where perfection receives the appropriate focus—the increased specialization results in higher sophistication in the process of economic transformation.
There is an increased level of technological advancements in industrial economies, which is obviously due to a higher need for specialization. For having the cost-effectiveness, most of the organizations are bound to improve on specialization. The organizations are approaching specialist for almost every activity.
In the management of an organization, experts, and professionals like the management consultants, legal advisers, financial experts, and technocrats are highly significant.
3) Changed Lifestyle: There will be a noticeable change in the lifestyle due to the development of corporate culture and the development of the potent service sector.
Fashion will soon be converted into an industry due to the impact of the internet on various aspects of life. As the health consciousness will be promoted, services like hairdressing, beauty parlors, jogging, and gym centers would be facing a good growth.
4) Improved Literacy Rate: The literacy rate, especially in the backward areas of India, is improving significantly due to the education mission adopted by the government of India. This makes the consumers more aware, knowledgeable, and sensitive about the services which they are consuming.
5) Professionalism in Education: All the organizations, whether they produce products or offer the services, will give the highest priorities to the development of human resources.
However, performance-orientation will be the root of all the corporate activities, and this is not accomplished without having an employee orientation in the organization. Most of the population will pursue professional education due to the increased importance of professional excellence.
6) Information Explosion: Many attempts are made towards creating an information super-highway by the developed countries. The information explosion has resulted in a lot of innovations and inventions in the area of communications.
This is the main reason behind the conversion of the globe into a global village. The new definitions of developments are written in every dimension of the business after satellite communication development. This communication explosion influences almost all the sectors of the economy.
7) Sophistication in Market: The sophistication in the markets is created by developing various communication services where the customers’ expectations are relatively high.
There will be a drastic change in food habits, dresses, hairstyles, drinks, style of homes and apartments, living conditions, etc. The nature of the market regarding the products and services demanded by the customers will face a drastic change.