Business services are activities that benefit companies without supplying physical products. They comprise marketing, event planning, training and waste management, among many other types of non-tangible services that businesses rely on to function and grow. Some of these services are provided internally by company departments; others are contracted out to independent service providers.
For example, a company that needs help with information technology may contract a business services firm to handle its computer systems and networks. Other companies rely on financial service firms to handle accounting, taxes and investments. Purchasing and shipping companies ensure that a business has the raw materials and finished goods it needs to operate, while transportation services keep the products moving from point A to point B.
Outsourcing can be a cost-effective way for companies to obtain business services. For example, a firm that requires design services to create a new product might hire a freelance graphic designer rather than an internal employee with those skills. These professionals can also be hired on a contract basis, which frees the company’s staff up to focus on core tasks.
The burgeoning demand for business services is being driven by several factors. Greater affluence has allowed some segments of the population to garner more leisure time, which in turn has led them to outsource chores like lawn care and dry cleaning. The rise of women in the work force has also increased the need for business services such as babysitting and housecleaning.
As the number of business services continues to grow, it is essential that they be managed effectively. This means keeping track of the amount of time and money spent on these activities, as well as ensuring that they are completed at a high level of quality. It is also important to have a system in place to measure the performance of business services, in order to make improvements where necessary.
Some business services are intangible, which makes it challenging to determine their value. In addition, because these services are largely performed by human beings, inconsistency is common. This can be problematic when it comes to meeting customer requirements, which often depend on the perception of a service. For example, a fast-food restaurant will lose customers if the employees don’t provide prompt and courteous service.
Despite their intangibility, business services are a critical component of the economy. They contribute to 11% of the European Union’s gross domestic product (GDP) and encompass a wide variety of industries. Some of these include IT, finance, legal and consulting services.
As a result of the increased use of business services, the number of jobs in this industry is expected to continue growing. This includes positions such as IT project managers, procurement specialists and logistics experts. In addition, many of these positions can be done remotely, which is an attractive option for people who want to avoid a commute or have other family responsibilities. These jobs are also becoming more flexible, thanks to advances in technology.