Business services are activities that support a business yet don’t involve the production of tangible goods. Examples include information technology (IT) services that directly support a business’s operations, finance and accounting services that deal with the management of money, and supply chain and logistics services that manage a company’s procurement and shipping needs. Generally speaking, the term “business services” encompasses any industry that helps a company operate efficiently and productively.
The business services sector comprises the majority of jobs in the economy and it is comprised of the following broad groups:
Administrative Services
This includes the support functions of a business, including human resources (HR) and finance. In addition, this group also includes IT support, legal services, facilities management and training services. These are all activities that help businesses to function and to be competitive.
The specialized business services that can support a company’s infrastructure and productivity are often more valuable than the core products of that business. Outsourcing these ancillary services can allow a company to focus on its core business and can also save the company a great deal of money.
These ancillary business services can be very similar to consumer services but with additional functionality, features or quality. For example, a cloud storage service might be marketed to consumers but have increased data redundancy and security features for businesses.
Some of the business services are a direct part of a company’s product offerings such as consulting firms that advise companies on strategy and mergers. Other business services are intangible such as the IT support and consulting offered by a service provider or the leasing of hardware or software.
Other business services are based on a product as a service model, such as computing equipment that is sold for a recurring fee and includes operation, maintenance and support. This can be very beneficial for companies that may not have the capital or budget to purchase a piece of equipment outright.
The scalability of many of these business services can be very helpful for companies that need to quickly adjust their level of service to meet changing customer needs and requirements. For example, during the coronavirus pandemic, the need for IT support has exploded and specialized business services providers have been able to provide quick, reliable solutions. In addition, some of these specialized services can be offered at affordable prices due to the economies of scale and scope that they have achieved. This flexibility allows businesses to maximize the use of their own internal resources while still allowing them to meet the demands of their customers. This is a win-win for both the business and the customers that it serves.
