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Technology in the Service Sector
By and large, the service sector is a consumer of technology rather than a developer of technology.While national statistics describe the steady growth of technology internal to the service sector -increasing from less than 5 percent of total R&D performed in  the U.S. 15 years ago to 26.5 percent in1993 - it appears that the bulk of this technology development is performed by the communications and computer services industries and that the typical service sector industry is far less active in R&D. Far and away the dominant technology is information technology (IT). IT accounts for more than 80 percent of the technology purchased by service sector firms and is the predominant focus of service sector RDT&E (research, development, test, and evaluation) staffs. While some level of technology development is occurring throughout the service sector, it appears to be technologically diffuse and quantitatively modest. In the service sector, as a whole, it appears more appropriate to speak of the RDT&E function of service firms than to speak of simply their R&D function. RDT&E staffs are small but growing.

Corporate technology managers sense that such staff growth is a response to secular changes in the nature of their industries, such as the integration requirements that are the result of industry convergence and the movement toward integrating IT into service content and delivery. For large firms, an RDT&E group of 15-25 people is typical. Often, this staff coordinates the efforts of additional engineering and RDT&E staffs at the divisional level. The technical focus of 80-100% of the typical RDT&E staff is on information technology. Indian businesses are changing to deliver better value to customers and maintain their position in a fiercely competitive scenario using information technology, according to a survey conducted by University of California (UCLA) in association with IIT, Mumbai. The demand for executive decision making tools is increasing across all sectors while security is becoming a major concern with all organisations and importance of disaster recovery and business continuity is being realised, IIT-Bombay School of Management Prof Atanu Ghosh said. Outsourcing seems to be limited to market research in non-IT and programming and network management within IT, he said, adding websites are largely being used as platforms to provide information except in financial sector, where transaction processing services are also available. Organisations are becoming increasingly more conscious about monitoring of customer facing interactions, Ghosh said. With increasing technology adoption and deployment, costs of production, commercial, internal communication and service have decreased while technology costs have increased.

Technology has also played a role in strategic areas including understanding of customer satisfaction for current products and services, competitor knowledge and customer buying behaviour, he said. Over 74 organisations participated in the study, of which over half of those surveyed are increasing production/services bases in other countries, trade in other countries and distributors/branches around the world. Over a third reported an increase in the number of countries in the supplier base. Indian businesses are changing to deliver better value to customers and maintain their position in a fiercely competitive scenario using information technology,The aim of the Business and Information Technology survey was to find impact of newinformation technologies on business and industry structure; work process inter- organisational relationships and concepts of control. The survey's purpose was to develop a base-line understanding of impact of IT on business practices worldwide, Prof Uday Karmarkar, LA Times professor of technology and strategy and research director, Centre for Management in Information Economy, Anderson School of Management, UCLA said here on Thursday. "We wanted to know how industries globally have changed or are changing due to information technology," he said, adding currently research was being carried out in various countries including India, France and Germany.

The survey was carried out among a range of industries such as FMCG, retail, telecom, BPO, pharma, media.Speaking about results of the survey in USA, Karmarkar said information, knowledge and decision processes are being increasingly automated due to increasing role of IT.
Indian businesses are changing to deliver better value to customers and maintain their position in a fiercely competitive scenario using information technology, according to a survey conducted by University of California in association with IIT, Bombay.

The demand for executive decision making tools is increasing across all sectors while security is becoming a major concern with all organizations and importance of disaster recovery and business continuity is being realized, Prof Atanu Ghosh from IIT Bombay School of Management said.Outsourcing seems to be limited to market research in non-IT and programming and network management within IT, he said, adding websites are largely being used as platforms to provide information except in financial sector, where transaction processing services are also available. Organizations are becoming increasingly more conscious about monitoring of customer facing interactions, Ghosh said.With increasing technology adoption and deployment, costs of production, commercial, internal communication and service have decreased while technology costs have increased. Technology has also played a role in strategic areas including understanding of customer satisfaction for current products and services, competitor knowledge and customer buying behavior, he said. The survey's purpose was to develop a base-line understanding of impact of IT on business practices worldwide, Prof Uday Karmarkar, LA times professor of technology and strategy and research director, Centre for Management in Information Economy, Anderson School of Management, UCLA said in Mumbai."We wanted to know how industries globally have changed or are changing due to information technology," he said, adding currently research was being carried out in various countries including India, France and Germany.The survey was carried out among a range of industries such as FMCG, retail, telecom, BPO,pharma and media.Speaking about results of the survey in USA, Karmarkar said information, knowledge anddecision processes are being increasingly automated due to increasing role of IT.

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