Business services are the activities performed by businesses to maintain a company, even if they do not produce tangible goods. These include information technology, procurement, finance and shipping.
The business services sector is a large and diverse industry in which companies provide support to other companies, including administration, security, travel arrangements and office supplies. It is one of the fastest-growing sectors in the world, driven by increasing demand for specialized business solutions and digitalization.
There are several different types of business services and each one has its own specific functions. Some of the most common are listed below:
Tech Support Services
These businesses help companies and individuals resolve technology issues such as computer or network problems quickly and efficiently. They also help companies avoid costly equipment malfunctions that could harm productivity or damage reputations.
Maintenance Service Professionals
These companies provide a variety of different maintenance services for commercial property such as heating, cooling and plumbing. They can also handle repairs on equipment such as appliances, vending machines and computers.
Pest Control Serviceprofessionals can also help address occasional infestations. These services can be vital to a company’s health and safety as well as code compliance.
These businesses supply water, electricity and gas to businesses, helping them keep their premises running smoothly. They also offer waste management services, which include garbage collection, recycling and disposal.
They can also offer delivery services, allowing businesses to receive their essential items without having to physically shop for them.
Often, business services providers also rent software applications to customers as part of their business process outsourcing services. They can also provide support for other business functions such as mail delivery, payroll, finance, building security, human resources and administration.
The services sector is a key contributor to the global economy. It is estimated that it will contribute about 5% to GDP growth over the next five years.
In the EU, business services are governed by the Services DirectiveEN***, which allows firms to establish in other countries and offer services to clients across borders. This policy allows the sector to become increasingly competitive and stimulates investment.
A service-oriented approach to business development can help managers build profitable businesses that deliver a high-quality product or service at an affordable price. The approach is based on four critical elements:
Business services are intangible, which means that they do not have a physical presence. Instead, they are delivered through practice or experience. For example, a service provider may teach a customer how to use a computer program or doctor a patient with an illness.
A major difference between goods and services is that goods can be stored for future use while a service must be delivered when demanded. This inconsistency means that a customer must be involved in the service process and understand how it will benefit him or her.
Business services are a major source of global economic growth, with a growing focus on Asia and emerging markets in the global economy. As more businesses are established in these areas, the business services sector is expected to grow at a faster rate than the overall economy.