ABSTRACT

This chapter analyzes changes inside a sector of the services that has been the subject of considerably less attention even though its growth record since the 1970s is among the most impressive in any part of the economy. It outlines the changing basis for competitiveness in the sector and discusses the implications for worker skills. The chapter looks at changes in recruitment and training designed to respond to this situation. It provides a case study of training in one firm illustrates the trends that are widespread throughout the sector. The transformations inside business service sectors affect the skills required of workers in several ways. Many business service firms are pursuing a strategy of seeking to create firm-specific "service know-how" that establishes and protects a niche for them in the marketplace. Accounting firms have tended to rely heavily on internal labor markets and extensive firm-based training.