A business service is any industry that supports the operations, infrastructure or productivity of a company. Examples include information technology (IT), human resources, finance, procurement, shipping and other support services. It is distinct from other types of businesses in that it does not produce a tangible product such as a machine or a good. A typical company requires many business services to be successful, and these industries make up a large sector of the economy.
Companies rely on business services to be able to focus on their core competencies and to compete in the marketplace. These businesses need to have access to new technologies and expertise that they may not have the time or resources to develop themselves, which is where business services come in. They also enable businesses to reduce their overhead costs by outsourcing tasks that would be more expensive to do in-house.
The term ‘business service’ is also used to refer to a specific type of quality of customer service. A company can measure the effectiveness of its customer service by looking at metrics such as response times, accuracy and helpfulness. By providing excellent customer service, a company can increase its customer satisfaction and attract new customers.
Although the concept of business services is well established, there are a number of different definitions and categories. Some economists, for example, distinguish between pure service and pure commodity goods, but others see a continuum with a pure service at one end and a pure commodity good at the other.
A company can provide business services to other businesses (B2B) as well as to consumers (B2C). This includes warehousing and logistical services, such as delivery and distribution. It can also include the provision of professional services, such as consulting and IT support. Increasingly, companies are offering value-added services to their customers through integration of these functions with other products, such as a warehouse providing complete fulfillment and ecommerce services.
Business services are a critical part of the economy and can be found in all countries, with the service sector contributing up to 50% of GDP in some countries. They are essential to manufacturing and other service sectors, but can also be provided by government agencies and nonprofit organizations.
The most common business services are accounting, legal, IT and insurance. However, a business can provide many other services that are unique to their industry, including market research, strategic planning and training. Moreover, business services can be delivered through the use of cloud computing, which has increased the speed and scale at which data is processed. This has reduced the cost of delivering business services, especially in regions where the infrastructure is lacking. As a result, more firms are moving their operations to the cloud. However, it is important to note that the move towards cloud computing is a complex process that will require careful planning and consideration. Furthermore, a business must be prepared to adapt its processes and systems to the new environment.