Traditional definitions of the "services industry" no longer capture the enormous range of non-manufacturing and non-agricultural activity occurring in the global economy. Fully 75 percent of the U.S. economy is now service-based, and 7 of every 10 employees are defined as service workers. Services are not restricted to any industry, but occur in all industries. They are anything that adds value, improves responsiveness, reduces cost, allows risk taking, and increases competitiveness. Global economic and quality competition, stockholder demands for increased profits, and pressures to reduce government spending have caused the service phenomenon. As corporations and government entities concentrate on core competencies, service providers perform those necessary services that are outside of core areas. A large segment of the services industry already supports the Department of Defense (DOD), and this will continue to grow. There are still significant challenges to the DOD in defining core competencies and overcoming a culture that is grounded in ownership, and in command and control of people and assets.
ICAF Industry Studies 1999