ABSTRACT
This chapter focuses on Finnish native employment service providers that are traditionally small and have less technological savvy and fewer resources than companies such as Adecco. It attempts to describe how small-scale service providers view digital disruption before it happens, and how they anticipate responding to it. The digitalization of service industries can be an unsettling process that requires significant risk taking. Whereas digitalization tends to shift tasks from humans to computers, its paradox is that it requires human capital. The chapter examines private employment agencies because they appear to be at the cusp of a digital transformation and benefit from significant innovation opportunities, yet much of the industry is characterized by a low utilization of digital technologies and reliance on human communication and decision-making. The digitalization of general administrative processes in employment services is similar compared to other small Finnish service firms. The digital transition of domestic, low-tech service markets is highly uncertain.
