Business services are intangible goods or service-related activities that support the operations of an organization. They can include everything from design, accounting and marketing to information technology and financial services. Some businesses have their own internal department that provides business services, while others contract with outside companies or organizations to provide them. In either case, business services can help a company save money and improve efficiency, productivity and competitiveness.
A key characteristic of business services is that they are not tangible or physical products, which means that they cannot be stored like inventory and consumed at a later date. They are also often produced and consumed simultaneously, involving both the service provider and the customer. Additionally, the nature of business services makes them difficult to measure in the same way that a product can be measured.
The most commonly known type of business service is a utility, such as electricity or gas. Other common examples of business services include telecommunications, software and management consulting. Companies that provide these types of business services typically have large client bases and a wide variety of products and services.
Many companies have found it beneficial to outsource some of their business functions, including legal and customer support. This allows them to focus on their core product and increase overall profitability. For example, Dropbox largely outsourced its legal and customer support functions during its early days, which allowed it to quickly scale up and become one of the most successful startups in history.
A growing number of startups are embracing the concept of shared services, which are centrally managed functions that provide shared infrastructure and processes to several departments within a company. This can be an effective cost-saving strategy for both small and large companies, and it can also lead to improved performance and increased productivity.
Providing business services requires a diverse skill set, which includes customer service, project management and communication skills. In addition, this industry is regulated by a variety of state and federal laws. For this reason, hiring and training qualified business services employees is important.
The qualifications needed to get a job in business services vary depending on the industry. For example, a person interested in working for a shipping or warehouse company should have good organizational skills and a strong work ethic. A more professional role, such as a business analyst or IT consultant, requires at least a bachelor’s degree in their field and related experience.
The business services sector faces a number of challenges, such as low average productivity and continuing legal barriers to cross-border trade. However, new EU Internal Market legislation and policy actions aim to stimulate competitiveness in this important sector. In order to overcome these challenges, businesses that provide business services must adopt innovative practices and focus on developing high-value service offerings. Additionally, they must also implement a more comprehensive risk-management approach. This will include implementing robust control frameworks and developing an effective business risk profile.