Service Productivity Improvement and Software Technology Support

The service sector accounts around 70% of the total value add of GDP, yet this sector is still lagging behind manufacturing sector, in terms of overall productivity. This paper sets out to analyze this phenomenon. It first compares these two sectors and identifies the causes for the lag in productivity. It then depicts a vision of how new technologies can be developed to help bring services sector closer to manufacturing sector. Finally, the author introduces some related industry practice in this area that could help to implement such a vision.