The tertiary sector is the dominant part of the UK economy and accounts for over 77% of the UK’s GDP. It has grown considerably in the last 100 years as the UK economy has lost its competitive advantage in manufacturing to lower-cost producers such as India and China. The fact that both these countries are now facing challenges to their advantage in manufacturing from other emerging economies means that in today’s global economy the service industry is becoming more and more significant.
The service industry is a long-time specialism of the UK in terms of the banking, finance, legal and insurance industries, and this sector has also seen a growing threat from India and China, where a large number of UK banks have set up call centres to provide services to their customers. NatWest have bucked this trend and used their higher-cost UK-based call centres as a marketing tool to give themselves a USP over other banks and financial institutions.
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