A common practice while developing product services is to adopt procedures that could facilitate well-defined mapping of the stakeholder's requirements for the offered product services. A central theme of this research is to explore a few of those aspects which are typically not captured by traditional service development processes. This includes transition from stakeholder's needs to product services design like financial, marketing or customer relation targets and at the same level ensuring the balance between customer's satisfaction level and other stakeholder's expectations, thereby maintaining the comparative high-quality of offered services. In order to address this shortcoming in product service design, this paper proposes to employ a governance model by extending traditional service development process. Furthermore, a novel framework for industrial product service development is introduced, which consists of three process stages and takes into account the proposed governance model, along with product, process and resource models. This article also highlights some of key aspects which when considered in the governance model of our newly offered service design framework could allow service providers to tune services to optimal for individual needs.