Business services are activities that help maintain a business but do not produce or sell a tangible product. Examples include information technology services that support other business services such as procurement and shipping. In addition, business services can also include marketing and business consulting services. Some businesses that lack the resources to provide these services internally turn to outside service providers. This type of outsourcing typically provides a cost-effective and flexible solution for the company.
Business Services in Every Industry
The business service industry is present wherever businesses exist. From the smallest mom-and-pop shop to the largest multinational corporation, almost all companies need some form of business service in order to function. These services might be as simple as providing a dog walking service, or as complex as creating a business-to-business ecommerce site that facilitates the ordering of office supplies from a global supplier. The industries that use the most business services include banking, insurance, transportation, warehousing and communication.
In times of economic hardship, people cut back on many of these services as they focus their money on the products they need to survive and thrive. This doesn’t mean that these services aren’t needed, but it does mean that they must be more valuable to consumers if they are to continue to receive them.
Business service benefits include specialized expertise, cost-efficiency and the ability to foster innovation. In the case of a business consulting firm, for example, their insight and advice can assist in decision-making, enabling a company to resolve issues and meet goals.