Like all industrialized nations United States always had its economy tied with the services economy. But in the last decade, there are more services companies in the Fortune 500 list than manufacturing companies plus services companies are growing faster. The world is quickly moving towards a Service Economy.
There have been four main reasons for this shift
- Technology: the advent of new technologies like automation, digitization, AI, Mobility etc have enabled a plug and play services model.
- Flatter World: globalization of labor, high growth of Emerging Markets and lower cost of manufacturing have transformed the world we live in
- Operating Platforms: cloud platforms along with IAAS and PAAS platforms combined with Shared services and crowdsourcing have transformed the traditional operating models.
- People Talent: talent has broken the traditional mold of education background and is more focussed on outcome delivered for specific tasks regardless of physical boundaries, educational background and locations
The growth in revenue as well as market capitalization of service oriented companies is evident in the last few years. Companies across various verticals right from technology to healthcare to aviation to finance are embracing the services economy. The next few decades will see further acceleration
The fear that economist had with movement of blue collared jobs out from developed countries about rising unemployment has been allayed by the rise of services jobs. More jobs are being created as sectors are racing to embrace a service economy.
The need for supporting this growing demand with better tools and solutions is the need of the hour. We at Provus believe that we are going to be at the cusp of help smoothen the process gap that exists.