New Economy and the Service Sector Term Paper Example | Topics and Well Written Essays - 1250 words

New Economy and the Service Sector - Term Paper Example The present paper has identified that countries that fundamentally rely on the service-based economy have advanced economies than those whose economy is not service-based. Nevertheless, the new economy has had an enormous effect on the service sector. In effect, while considering the new economy, this expose is an investigation of the changing scenario in the service sector. In addition, the expose will elucidate on the cardinal principles of service quality. Furthermore, there will be an analysis on how the management of quality can create a much better service offering in organization. New Economy and the Service Sector According to Henwood, the New Economy has its origin between 1996 and 2003. In this regard, Henwood that the finance sector led politicians, businesspersons, economists, journalists, and people to believe that there was an economic change resulting from positive benefits experienced in an extended period. In this case, the developments included advancements in techn ological development, a more focus on work, and enormous global expansions of corporate. In addition, these developments would also include the productivity impact of the technological advancements with an added effect on quality of life (Henwood). Globalization of business and the revolution of the information technology field are the major features of the New Economy (Shepard). In this regard, the New Economy marked the introduction of free trade, market forces, and widespread deregulation in most countries of the world. These countries included former communist countries that disregarded free markets and market forces in their economies. In addition, globalization has led to economic unions growing and becoming more powerful as evidenced by the European Union (EU) and North America's free-trade agreement (Shepard). Nevertheless, the advancements in information technology have led to this revolution. Advancements in technology have become part of our daily lives. From the internet to the faxing machine, cellular phones to computers, these tools have become more than a necessity in human beings life. In this regard, this has led to the digital era in which opening and creation of new industries has become the norm. In this regard, the New Economy emphasizes the need for integrating information technology in businesses in the service sector. As a result, rapid technological changes enhance the capability of businesses in the service sector to get rid of layers of management (Shepard). Consequently, using this technology in the service industries enhances restructuring of industries in the service sector. In effect, this restructuring is crucial to bring efficiency to the service sector due to integration of information technology, which is a feature of the New Economy. Hartley noted that workers in the New Economy engaged in â€Å"knowledge-intensive work and use new information and communication technology to connect to customers and clients around the globe † (qt. in Pupo and Thomas). In effect, this has ensured that the workplace in the service sector has become more flexible. Consequently, flexibility is crucial towards the creation of an enabling environment for enhancing capacity building for more productivity and elimination of hierarchy in the service sector that defined the wages on labor.