Services Industry facing Industrial Revolution

According to Uday Karmarkar in the HBR of June 2004, the services industry is facing a change process resembling the industrial revolution. The industrialization of services is here, and outsourcing and offshoring are only part of this revolution. Automation, customer self-service, and global competition have been added to the mix, presenting a threat and a significant opportunity for all service companies. The churn, restructuring, and transformation of services will continue—and even accelerate—for the foreseeable future. This will mean a different landscape for companies, managers, and workers. In the end, the survivors of the service revolution will be those who understand the opportunities and rework their strategies and reorganize their processes, and people for the challenge ahead. The alternative is disaster, as was proven by industrial companies not acting in a timely way upon the industrial revolution.

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