In today’s economy every product has a service value attached to
it. The old dichotomy between product and services has been
reduced and a service-product continuum has been established. In
management this phenomenon is referred to as the Servitization
of Products. When a company proceeds from maximizing its sales
towards customer satisfaction it puts emphasis on the aspect of
service. It helps the company to enhance its goodwill in the
market. The concept of service economy will eventually give rise
to a decentralized means of producing skilled jobs. IBM is an
unique example. In spite of being a manufacturing company it
tends to call itself a services company. This has been the
scenario since it realized that the price elasticity of demand
for business solutions is less elastic than for hardware. The
company now benefits from the revenue of the elongated contracts
rather than receiving payment in a single mode. Studies reveal
that service economy jobs can enjoy double productivity through
the better applicat