The service sector supports a large number of businesses and companies of various sizes and operations. Nowadays, a vast majority of businesses have a separate unit or department solely dedicated to the service industry. Given how important the service sector is, its various aspects must be studied to understand it better. The article has discussed several service sector issues. Service sector issues are related to the difficulties inherent in the industry. Several kinds of service sector issues have been discussed here. The article, therefore, focuses on service sector issues, classification of service sector issues, and also, service sector issues definition. 

Service Sector Issues

     The service sector is a burgeoning industry. It is a diverse field of services. In Kerala, the service sector is one of the largest contributors to the state economy and makes up a majority of the GDP of Kerala. The service sector in Kerala accounts for an estimated 63.66%.  Service sector issues are related to the difficulties inherent in the industry. Several kinds of service sector issues have been discussed here. The service sector in Kerala supports a large number of businesses and companies of various sizes and operations. Nowadays, a vast majority of businesses have a separate unit or department solely dedicated to the service industry. Three sector structure of the economy that is evident in the organisational structure of Kerala’s economy states that:

  • The primary level of economic structure involves extracting useful materials as raw materials necessary for production.
  • The secondary level includes the proper management and refining of those raw materials through the manufacturing system.
  • The last level is the service sector which facilitates and supports, distribution, communications, transport, and customer interactions. 

In Kerala, the service sector comprises the tourism sector, IT sector hospitality, indigenous medical sector, transport educational as well as financial sectors. 

Service Sector Issues and Difficulties

For that reason, the number of service sector issues faced by the Kerala economy is considerable. These service sector issues may be related to:

  • Construction services 
  • Hotel management services
  • Trade services
  • Social and community services
  • Storage and transport services
  • Financial and property services

Tourism in Kerala is estimated to contribute around 8% of the GDP. The CAGR shows an increase of 11.43% in the service sector of India. The IT sector in Kerala is one of the rapidly growing industries in the service sector, however, it faces certain systemic issues. Despite such growth, the proper measure still hasn’t been fully implemented to address the remaining service sector issues.  However, the state of Kerala faces these issues:

  • Shortage of clerical labour
  • Increasing militant unionism
  • There is a shortage of good geographical locations suitable for manufacturing products
  • Lack of adequate investments towards developing tourism and IT sectors to bring in overseas investments
  • There is a lack of political drive to bring in a foreign investment portfolio

Classification of Service Sector Issues

The classification of service sector issues in Kerala is a relevant point of discussion. The service sector has so many varieties that the classification of service sector issues becomes a necessity. The article has discussed the classification of service sector issues:

  • Sales quality
  • Lack of specialisation and expertise
  • Lack of essential developmental skills 
  • Management issues
  • Selection of clientele
  • Marketing and advertising

This classification of service sector issues will help people to understand the specificities of these issues. Marketing and management service sector issues in Kerala have to be addressed. 

Service Sector Issues Definition

The service sector issues definition includes systematic and administrative problems and challenges faced by service sectors in various industries located in Kerala. There are several kinds of service sector issues. The service sector, therefore, acts as a link between other stages of the production process and supports the important aspects of transactions.

Conclusion

The service sector in Kerala includes activities that range from housekeeping, IT, tourism, indigenous medical sector, maintenance, training, repairing, and facilitating distribution as well as consultation. The Kerala service sector industry is widely diverse and supports various kinds of industrial and household activities. It is a classical division of the economic system though, in reality, there is a lot of fluidity and diversity involved between and within these three bigger categories.