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Service Sector : Introduction

The tertiary sector of the economy (also known as the service sector or the service industry) is one of the three economic sectors, the others being the secondary sector(approximately the same as manufacturing) and the primary sector (agriculture, fishing, and extraction such as mining). The service sector consists of the "soft" parts of the economy, i.e. activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability. The basic characteristic of this sector is the production of services instead of end products. The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry. However, the focus is on people interacting with people and serving the customer rather than transforming physical goods. For the last 30 years, there has been a substantial shift from the primary and secondary sectors to the tertiary sector in industrialised countries. This shift is called tertiarisation. Examples of service sector employment include:

Government Public health Waste disposal Education Banking Insurance Financial services Legal services Consulting News medias, casinos Tourism Retail sales Franchising Real estate

Online service Sector : GROWTH

Providing services through internet is termed as on-line service sector.

1.RAPIDLY GROWING
Internet access in India is largely provided by the private sector and two state-run companies and is available in a variety of forms, using a variety of technologies, at a wide range of speeds and costs. The country has the world's fourth largest Internet users with over 100 million users (of whom 40 million use the Internet via mobile phones) as of December 2010.However, the Internet penetration in India is one of the lowest in the world and only accounts for 8.4% of the population compared to other counties where average penetration rate is over 50%.

In March 2011, India has witnessed an 18% rise in Active Internet Users among urban cities, amounting to 65 million across in country . Numbers of people who have Ever Used internet and are PC literates have also grown to 82 Mn and 114 Mn respectively. This growth is expected to continue and by September 2011, there will be 119 Mn PC literates and 88 Mn claimed Internet users of which there will be 70 Mn active Internet users who access Internet at least once a month.

As of September 2011, there were 112 Mn claimed Internet users in India. 88 Mn users are from urban cities and 18 Mn are from rural villages. It is expected that by September 2011, there will be 112 Mn Internet users in India 88 Mn from urban cities and 24 from rural villages

As of September 2011, there will be 112 Mn claimed Internet users: 88 million from urban cities and 24 Mn from rural villages

o Compared to last year, there has been a growth of around 13%. The momentum is expected to hold up and by December 2011, it is expected that there will be 121 Mn claimed Internet users - Of 112 Mn claimed Internet users, there are 90 Mn (70 Mn in urban cities and 20 Mn in rural villages) users that use Internet at least once a month (i.e. active Internet users) o Home, as an access point, has grown by a large percentage compared to 2009. The usage of Cyber Caf for Internet access has reduced this year. Of the active Internet users in urban cities, 26.3 Mn access Internet through their mobile phones. This has been the most recent change in the access behavior. It is expected that this trend will continue to grow in the immediate future. - Youngsters in India continue to drive Internet Usage in India. In usage of School Going Kids has seen a substantial rise. This opens up the market for children aged below 18 year of age. - Internet usage in Smaller towns continue to spike their dominance over Top 8 metros with a combined usage of more than 60% - Penetration in Lower SECs continues with 25% with people from SEC C status and 11% for the ones with SEC D and E status. - Emails, Education, Social Networking, Music and Text chatting are the most popular activities amongst Urban Internet users. - Of 79 Mn active Internet users, 87% of Urban Internet users use internet at least once a week.

MAIN TYPES OF ONLINE SERVICES

These services are discussed in detail:

ONLINE BANKING
Includes various banking activities conducted from home, business or on road instead of at a physical bank location. E-banking is a generic term for delivery of banking services and products through electronic channels,such as the telephone, the internet, the cell phone,etc. The concept and scope of E-banking is still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably. E-banking has improved efficiency and convenience, it has also posed several challenges to the regulators and supervisors. Several initiatives taken by the government of India, as well as the Reserve Bank of India (RBI), have facilitated the development of E-banking in India. The government of India enacted the IT Act, 2000, which provides legal recognition to electronic transactions and other means of electronic commerce. The RBI has been preparing to upgrade itself as a regulator and supervisor of the technologically dominated financial system. It issued guidelines on risks and control in computer and telecommunication system to all banks, advising them to evaluate the risks inherent in the systems and put in place adequate control mechanisms to address these risks. The existing regulatory framework over banks has also been extended to E-banking. It covers various issues that fall within the framework of technology, security standards, and legal and regulatory issues.

Major banks in India providing online facilities :


Axis Bank HDFC Bank ICICI Bank IndusInd Bank Kotak mahindra bank Yes bank Allahbad bank Andhra bank State bank of India Bank of India syndicate bank Bank of Baroda Indian overseas bank Punjab national bank

Punjab and Sindh bank Bank of Maharashtra

ADVANTAGES OF ONLINE BANKING


Internet banking does offer many benefits for both banks and their customers. So the banks are doing what they can to encourage customers to try it. 1. An internet banking account is simple to open and use. You just enter a few answers to questions in a form while sitting comfortably in your own home or office. To access your account, you establish security measures such as usernames and passwords. To complete the set up of your account, you just print, sign and send in a form. 2. Internet banking costs less. Because there are fewer buildings to maintain, and less involvement by salaried employees, there is a much lower overhead with online banks. These savings allow them to offer higher interest rates on savings accounts and lower lending rates and service charges. Even traditional brick and mortar banks offer better deals such as free bill paying services to encourage their customers to do their banking online. 3. Comparing internet banks to get the best deal is easy. In a short time, you can visit several online banks to compare what they offer re savings and checking account deals as well as their interest rates. Other things you can easily research are what credit cards are available, credit card interest rates, loan terms and the banks own rating with the FDIC. 4. Bouncing a check (accidentally) should be a thing of the past because you can monitor your account online any time, day or night. You can track your balance daily, see what checks have cleared and when and know when automatic deposits and payments are made. This is all possible by simply going online to the banks website and logging into your account. 5. You can keep your account balanced using your computer and your monthly statement. Your bank account information can be downloaded into software programs such as Microsoft Money or Quicken, making is easy to reconcile your account with just a few mouse clicks. The convenience of the data capture online makes it much easier to budget and track where your money goes. Your internet bank account even allows you to view copies of the checks you have written each month.

6. With the ability to view your account at anytime, it is easier to catch fraudulent activity in your account before much damage is done. As soon as you log into your account, you will quickly see whether there is anything amiss when you check on your deposits and debits. If anyone writes a check or withdraws funds from your account and you know it wasn't you, you will see it right away. This lets you get started on correcting the problem immediately rather than having to wait a month to even have a clue it is happening as would be the case with a traditional bank. 7. Internet banking offers a great deal more convenience than you could get from a conventional bank. You aren't bound by 'banker's hours' and you don't have to go there physically in your car. Time is not wasted when you have work to do because you can do your office's banking without leaving the office. No matter where you are or what time it is, you can easily manage your money. There are sound reasons why internet banking is growing. The economic advantages have encouraged banks to provide an increasing range of easy to use services via the internet. Customers have found doing business online simple and speedy and have become very comfortable with the arrangement. Internet banking gives people more control over their money in a very convenient way that they find enjoyable and reassuring. Other advantages are as follows: Offer international capital raising ,trade and services and special services for international trade
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Several online banks allow their customers to view images of all incoming cheques,invoices etc.
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Pay bills quickly Transfer money to different account or bank User can bank online while travelling

DISADVANTAGES
Internet banking services provide a number of benefits to consumers. But while it has its advantages, customers wishing to join the trend need to know its disadvantages as well. Despite the growing popularity of internet banking, it cannot be denied that some people still remain hesitant doing transactions online especially where money is concerned. Amidst the aggressive marketing made by the numerous financial institutions that have gone online, some sectors of society are still doubtful about this type of banking notably on the aspect of security. Impersonal. Doing transactions on the internet can be very impersonal. In other words, you only do business with the use of a computer. No individual to receive and check your money or correct some wrong information that you might have written on a certain form. And so for people comfortable dealing with real people who provide personalized services and using paper and money, internet banking is not ideal. Lack of trust. Many people still don't trust the internet. For the new users who have performed financial transactions for only a few times, they may still have this doubt whether or not they did the right thing such as clicked the right button and so on. They can only be comfortable once they print the transaction receipt and the transaction appeared on the bank statement. Difficult for first timers. For a first time user, navigating through a website of an internet bank may be hard and may take some time. Opening an account could also take time as some sites ask for numerous personal details including a photo identification which can inconvenience the potential customer. Because of this complexity, they may be discouraged to use this internet banking service. Tutorials and live customer support may be provided, though, to help the client in his or her needed tasks so it's best to take the time to know the virtual environment. Security fraud. Many people shy away from internet banking because of the security threat. They can't help but worry about this aspect what with news on fraudulent bank transactions that pop up every now and then. However, this should not be a problem as banks that provide internet banking services prioritize security above anything else. Since they value their customers, they always use the most advanced security technology in protecting their websites. In addition, the Federal Deposit Insurance Corporation (FDIC) is also standing behind them. Bank site changes. Most banks upgrade their online programs on a periodic basis sometimes adding new features and products. When this happens, the bank may ask customers to re-enter account information which can be a cause of worry.

TRAVEL AND TOURISM SERVICES


A travel website is a website on the world wide web, that is dedicated to travel. The site may be focused on travel reviews, the booking of travel, or a combination of both. Approximately seventy

million consumers researched travel plans online in July 2006. Travel bookings are the single largest component of e-commerce, according to Forrester Research. Many websites take the form of a digital version of a traditional guide book, aiming to provide advice on which destinations, attractions, accommodations, and so on, are worth a visit and providing information on how to access them. Some travel websites cater specifically to the college student audience and list exclusive airfare deals and travel products. StudentUniverse offers exclusive airfare for college student and faculty, as well as 18-25 year-old youth travelers. Members must verify that they are enrolled or are faculty at an accredited college or university. Individual airlines, hotels, bed and breakfasts, cruise lines, automobile rental companies, and other travel-related service providers often maintain their own web sites providing retail sales. Many with complex offerings include some sort of search engine technology to look for bookings within a certain timeframe, service class, geographic location, or price range. MAJOR TRAVEL SITES IN INDIA INCLUDE :

Make my trip Yatra Travel guru Meratrip Indiatimes Clear trip Flight raja

www.makemytrip.com www.yatra.com www.travelguru.com www.meratrip.com www.indiatimes.com www.cleartrip.com www.flightraja.com

INCREDIBLE INDIA CAMPEIGN

The first marketing initiative of its kind, Incredible India was conceptualized in 2002 by V Sunil (while he was Creative Director, O&M Delhi), and Amitabh Kant, Joint Secretary, Ministry of Tourism. The primary objective of this branding exercise was to create a distinctive identity for the country. This resulted in the iconic Incredible !ndia logo, where the exclamation mark that formed the I of India was used to great effect across all communications. The campaign successfully established India as a high-end tourist destination, generating a 16% increase in tourist traffic in the first year. In the second year, the Incredible India campaign focused on spiritual tourism, resulting in a 28.8% increase in tourist traffic and a no.1 ranking in the Travel+Leisure readers survey. In 2003, Cond Nast Traveller selected India as one of the top ten preferred destinations for the discerning traveller. Indias results are very exciting and show the countrys increasing popularity amongst sophisticated travellers. It also reflects very positively on the individuals involved in promoting India as a premium tourist destination. Sarah Miller, Editor, Cond Nast Traveller, 2003. In January 2004, Lonely Planet conducted a survey in 134 countries to select the worlds favourite destination for individual travellers. India was ranked among the top five favourite international destinations in the global survey (the other four were Thailand, Italy, Australia and New Zealand). According to Lonely Planet, the respondent for the survey was todays independent traveller professional, with a degree or post-graduate qualification who is aged 25 to 34. The 2003/04 campaign went on to win many prestigious awards, including Gold at PATA and the Bombay Ad Club.

Incredible response from online campaign


The Government of India Ministry of Tourism wanted to promote India as the destination of choice among international travellers from the UnitedStates, Europe, and Asia Pacific. The marketing strategy, which went beyond the traditional media mix, integrated online marketing so the Ministry could reach the increasing number of people who research their holiday destinations online. The Ministry understood the need for an interactive and engaging campaign to ensure message retention, as tourists choose international holiday decisions months ahead of actual travel dates.

Campaign Results
The campaign produced a 24 percentage point jump in favourability for India as a destination from those who saw the campaign, plus a 19 percentage point increase in likelihood to visit within two years. Both these findings reinforced existing Incredible !ndia branding, and demonstrated Microsofts power to execute across multiple markets. In fact 83 percent of survey respondents thought MSN is a good way to reach international travellers. Almost 60 percent of those who saw the campaign were more likely to holiday in India More than 75 percent of the response sample perceived India as an attractive destination Holiday decision makers comprised 84 percent of the response sample 90 percent of the response sample used the internet for planning leisure travel

ADVANTAGES OF ONLINE TRAVEL SERVICES


Tremendous amount of information
A travel agent will tell you what he can do for you, but there are no guarantees that there are no better deals that he didn't find. Booking online gives you the opportunity to do your own research. Comparing prices and offers from many different sites may come up with a better deal. There are no guarantees, but you are more motivated to save money than your agent is, so you may have a better chance of beating his deal.

Elimination of travel agents


All travel agents charge fees for their services. The charges are built right into the prices. Some online sites may charge a nominal fee for booking, but if you shop directly with the airlines or other transportation sites, there will be no booking fees charged.

Comparison Shopping Booking online gives you the chance to immediately compare prices from many different airlines or resorts. You can use one of the aggregate sites, like Expedia, Travelocity or Orbitz to get a range of prices from different sites all at once. For even better prices, go to the actual airline sites themselves. Often the airline website has the absolute lowest prices anywhere. Convenience
Your computer in your home is always convenient, 24 hours a day. You can book travel online in the middle of the night without leaving home. You won't spend any gas for travel to the office, and you won't waste time finding a travel agent.

Discount Sites
There are many sites online that offer discount coupon codes for travel of all kinds. Whether your vacation is to a family amusement park or relaxing on a beach, there may be a discount code that applies to some part of your travel plans. Do a search in your favorite search engine for "travel discount" and see what sites you can find.

DISADVANTAGES

Disadvantages of online travel service are:

Reliability
All the online travel agencies are not reliable and it becomes impossible to find the travel agency which is most reliable. There is always risk to depend on online travel agencies.

Wrong tickets
Sometimes booking of the tickets by the staff members is done without care and problem arise when you are about to leave. They usually commit mistake and book the ticket of wrong destination

Hidden charges
Sometimes the hidden charges of the travel agency cost a lot and you avoid the travel agency for booking the travel again

No improvements
The arrangements made by the travel agencies are not satisfactory and you complain a lot to the authority but no improvements are made in the direction.

Complex trips
Complex trips require specialized knowledge and arrangements which must be done by a conventional travel agent.

ONLINE CAREER SERVICES

employment website is a web site dealing specifically with employment or careers. Many employment websites are designed to allow employers to post job requirements for a position to be filled

Other employment sites offer employer reviews, career and job-search advice describe different job descriptions or employers. Through a job website a prospective employee can locate and fill out a job application or submit resumes over the Internet for the advertised position

Top 10 websites in India that are essential for all job seekers: Naukri Monster India Times Jobs JobsAhead Devnetjobs India CareerBuilder India Bixee.com Clickjobs.com CareerAge.com Freshersworld.com

Statistical data on online job seekers

Fifty cities account for almost 90% of the jobseekers, and the top 20 cities account for nearly 81%. This, more than anything else, is a clear indication of the skewed distribution of online jobseekers. There are several reasons behind this, the key ones being economic opportunities and Internet penetration Women The gender difference probably reflects the workplace gender difference (in the kind of 17rganizations that online jobseekers work). As many as 23% of the online job seekers are women. However, the proportion of women among the online job seekers varies greatly across cities. In Mumbai, Pune, Hyderabad, Bangalore, Chennai and Pune, the proportion of women is significantly higher than the all-India average, whereas in Delhi and Ahmedabad, it is well below the all-India average

Online stock trading


A Stock Exchange is the place where investors go to buy/sell their shares Once a company's public offering is complete, it gets listed in a stock exchange. After listing it would be available for trading to all investors in the stock exachanges where they are listed. In India we have two major stock exchanges. They are: 1. The National Stock Exchange (NSE) & 2. The Bombay Stock Exchanges (BSE) National Stock Exchange: The NSE is India's largest and the worlds third largest stock exchange in terms of Transaction volumes & amounts. The NSE is based out of Bombay. The NSE has set up its trading platform as a nation-wide, fully automated screen based system. This enables anyone in any part of the country to trade on shares listed in the NSE. NSE Index or NIFTY: The NSE Index or the Nifty Index as it is popularly known, is the index of the performance of the 50 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. The value of the Nifty Index is the weighted average of the prices of these 50 companies. Bombay Stock Exchange: The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000 companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also uses the latest technologies in the IT field to provide a single place where traders from across the world can buy/sell shares in the Indian share market. BSE Index or SENSEX: The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. Since the number of companies is lesser, the index variations are higher when compared to the Nifty index.

SCOPE OF ONLINE SERVICES IN INDIA


URBAN POPULATION

302 Mn individuals live in the urban cities. Of these, 38% know how to operate a computer. This number has grown from 32% in 2009. 72% of the computer literates claim to have used the internet ever. 79% of these are actively accessing the internet, at least once in the past one month. The penetration of claimed internet users has grown from 24% in 2009 to 27% of the total urban population

Among rural villages in India, basis the projections over NRS 2006, there are 603 Mn individuals live in the villages who are more than 12 years of age. Of these, 8% know how to operate a computer. 36% of the computer literates claim to have used the internet ever. 78% of these are actively accessing the internet, at least once in the past one month. The penetration of claimed 1 internet users is really low (around 3% ).

CONCLUSION

As of September 2011, there will be 112 Mn claimed Internet users: 88 million from urban cities and 24 Mn from rural villages o Compared to last year, there has been a growth of around 13%. The momentum is expected to hold up and by December 2011, it is expected that there will be 121 Mn claimed Internet users - Of 112 Mn claimed Internet users, there are 90 Mn (70 Mn in urban cities and 20 Mn in rural villages) users that use Internet at least once a month (i.e. active Internet users) o Home, as an access point, has grown by a large percentage compared to 2009. The usage of Cyber Caf for Internet access has reduced this year. Of the active Internet users in urban cities, 26.3 Mn access Internet through their mobile phones. This has been the most recent change in the access behavior. It is expected that this trend will continue to grow in the immediate future.

For the last 30 years, there has been a substantial shift from the primary and secondary sectors to the tertiary sector in industrialised countries. The online tertiary sector is now the fastest-growing sector in the westand is soon catching pace in india.