Sunday, April 22, 2007

Poor Service in Service Economy

The now famed (and established!) India (turnaround) story is largely scripted on the foundation of Services Sector; manufacturing sector coming in to join the party notwithstanding. So much so that India is now predominantly a services economy [in terms of GDP share and not employment (disguised unemployment!)].

In all this big talk about services, we do not realize the fact that we offer extremely poor service - be it banks, airlines, hospitals or restaurants. Private sector might be a shade better than the Government sector, but we still woefully fall short of international standards. So our taxi drivers refuse customers on the face, railway ticket counter guy thinks he is doing a favour to you and warranty service is non-existent.

Is it because of our mindset or culture? Or is there a genuine gap, a business opportunity staring on the face? May be both; and that’s where lies the challenge!

Differentiate your service and charge a premium. Isn’t that the mantra!