Business services is a broad term that describes work that supports a company but does not produce a tangible commodity. This includes functions such as information technology (IT), human resources, accounting and financial services. A successful business services strategy aligns these activities with the goals of a company, improving efficiency and enabling it to compete effectively in the marketplace.
One of the largest service sectors, business services contribute about 11% of European Union (EU) gross domestic product (GDP). Business services are crucial to the competitiveness of manufacturing and other service industries. In addition, they are increasingly being used to enhance the value of products through new combinations of goods and services.
The business services sector encompasses a wide range of categories, including professional, support and utility services, as well as transportation and warehousing. It also includes employment and facility management services. Some examples include accounting and finance services, legal and HR services, and warehousing and distribution services. The professional and business services supersector is the second largest in terms of employment, after retail trade. It includes a wide variety of occupations such as secretaries, managers, consultants and specialized sales representatives.
Companies that offer business services include airlines, banks, computer service bureaus, law firms and management consulting companies. Other examples are computer and software development companies, motion picture theaters and plumbing repair businesses. These are all pure business service businesses, because they do not produce a physical product.
These types of business service companies have different strategic management challenges than other businesses that sell a physical product. For example, it can be difficult to explain a management consulting firm’s services in terms of the physical reality of a book or film. It is even more challenging to create a business model that will differentiate it from other management consulting firms.
The service industry is booming, especially in emerging markets. As the global economy continues to evolve, business services will continue to be an important part of this evolution. This is because these services provide a vital link between the global economic system and local economies.
Many of the tasks involved in business services can be performed remotely. This makes this type of work a good option for people who do not want to commute or who need a flexible schedule. In fact, many people who work in business services choose to work from home or another location where they can get a high-speed Internet connection.
In addition to offering the flexibility of remote work, business services can help businesses save money by reducing their overhead costs. These services can also improve productivity and customer service, helping companies to be more competitive. Whether your organization needs a full suite of business services or just some support, the right provider can help you achieve your business goals.
