The growth of the service sector in recent decades has been called a “wonder of human history” and is a match for revolutions agricultural and industrial (Spohrer and Maglio 2008, p19). It cannot be denied that technological advances have played a vital role in this spectacular evolution. Technology has transformed not only the nature of services but also the means by which businesses connect to their customers (Zeuthaml and Bitner 2000). It has enabled the development of new services, created new means of service delivery and enabled customers and businesses to receive and administer improved, more accessible, efficient and personalized services (Wang et. al 2013). Developments in communication technologies and especially the Internet have removed the traditional boundaries of geographic location and time and have even created a whole new virtual market previously unimaginable; “market space” (Bhakkad and Patil 2014). While these vast technological advancements have undoubtedly had a positive impact on the service industry, one should not ignore the negative drawbacks that also exist. This paper will delve further into the positive impacts by looking at some emerging trends and will also look at some of the negative impacts and how businesses need to be aware that technology is not an automatic recipe for success. The article ends with a quote from American writer Irene Peter: “Just because everything is different doesn’t mean anything has changed.” Beyond these technological advances and the transformation of the service sector, one thing remains unchanged; customers always want their needs and expectations met through their service encounters, whatever their form (Bitner 2001)....... middle of article ......oduction and Operations Management , 17: 238–246. Walker, R, H., Craig-Lees, M., Hecker, R and Francis, H.2002. Technology-enabled service delivery: an investigation into the reasons affecting customer adoption and rejection. International Journal of Service Industry Management, 13(1), pp.91 – 106. Willcocks, LP and Plant, R. 2001. “Moving from bricks to clicks”, Sloan Management Review, 42(3), pp.50-9 . .Wang, CC, Chen, MC, Hsien, TC 2013. An investigation on the correlation between technological mode, service evidence and service quality from customer perspective. Open Journal of Business Management,1, pp. 45-53Irene Peter – quoteHostage, GM 1975. Quality control in a service company. Harvard Business Review,53(4), pages 98 to 106IBM. 2014. IBM releases third quarter 2013 results. [online] Available at: http://www-03.ibm.com/press/us/en/pressrelease/42215.wss [