Limitations of the Services Sector:
The services sector in India, as at present, suffers from low productivity and low quality in spite of fairly large investment in technology. Unless sustained efforts are put in to improve these, with the increasing importance of the services in wake of structural adjustment and liberalisation in the economy, we may get into two alternative scenarios.
One, economic and social position of workers in the services sector will steadily go down since real incomes cannot be higher than productivity for any extended length of time. This means economic stagnation and consequent social tensions.
Two, the workers in this sector will use their numerical strength to get wages higher than their economic contribution justified. This will impoverish others?reducing everyone's income and increasing unemployment, for example, personnel having technical skills. The knowledge, the workers have about their job, is the starting point for improving productivity, quality and performance. Partnership with other equally knowledgeable workers is the only way to ensure higher productivity and quality.