Confronted with intensive product price competition in China, industrial firms are forced to invest in extending the service business. Extending the service business is far from easy. Chinese competitors offer faked spare parts. Local service skills are very poor and service requirements force industrial firms to invest in logistic infrastructure. This article offers a guideline for managers seeking to professionalize the human resource management in the service organization, to adapt service offerings to the local customer needs, and to set-up a logistic infrastructure.