The services industry is the largest and fastest growing segment of the US economy, comprising three-fourths of the gross domestic product. Service providers create value through nonphysical products, accomplishing tasks ranging from accounting and engineering to health care. As individuals seek higher quality lifestyles, personal services will proliferate. As organizations seek greater efficiencies through restructuring, downsizing and outsourcing, the industry will continue to grow. The challenge for business and government alike will be to focus on their core competencies while finding world-class service providers to perform peripheral functions. Because of the diversity within the industry, this paper focused on four areas: information technology services, consulting services, base operations, and logistics. Although the services industry faces many future challenges, it is clearly poised to play a commanding role in the rapidly changing US and global marketplace.
ICAF Industry Studies 1998