Business services are activities that benefit companies without delivering a physical commodity. Examples of business services include marketing, consultation, waste handling and staffing services. Businesses use these services to increase productivity and keep up with work demands.
Businesses can offer business services to other companies (B2B) or to end consumers (B2C). Unlike goods, which are tangible products that are sold for their monetary value, a service is intangible and cannot be owned. This makes it difficult to compare the performance of a business service provider with other providers. However, a company can improve the quality of its business services by focusing on four factors: efficiency, customer experience, accessibility and cost.
The business services industry has become a recognisable subset of the economic services industry. In contrast to economic services, which focus on the supply of a specific commodity, business services are concerned with the building of service systems in order to deliver value to customers. These value-based activities are often carried out by employees who are acting in the roles of both a service provider and a service consumer.
While many people associate business services with the financial sector, these activities are found in every industry. In fact, a large portion of the global economy is made up of service industries, and the importance of these sectors is growing. In addition to providing jobs, these types of businesses also provide critical infrastructure services, such as water, electricity, waste management and communications.
Companies require many different kinds of business services to function effectively. These may include human resources, accounting, legal services and IT support. In some cases, organizations choose to centralize these functions into a shared services organization (SSO or SSC). This allows businesses to reduce costs and improve efficiency by eliminating duplicate services and streamlining processes.
Regardless of industry, all companies have needs for some kind of business service. For example, a company that is looking to expand its workspace may hire a real estate service to find suitable facilities. Alternatively, a company that is experiencing pest problems may turn to a pest control service to remedy the problem quickly and efficiently. Other common business services include computer repair, office cleaning, maintenance and security.
As the demand for business services increases, so does the need for innovative strategies to meet those demands. Some emerging business services trends include virtual services, such as online bookkeeping and telemedicine, which are increasing in popularity due to their convenience. Additionally, as people become more environmentally conscious, they are seeking out sustainable business services like eco-friendly cleaning and green energy consulting. Finally, more and more consumers are seeking out mobile business services that can come to them, such as beauty services or car detailing. These services can be a great way for companies to stand out from the competition and increase their revenue potential.