What Are Business Services?
Business services are industries that support businesses, either by improving their infrastructure or increasing productivity. This is a very broad industry, with many different career opportunities. Some of the most common include:
The service sector is a large part of the economy in most countries, employing a significant percentage of the workforce. It is also a key component of innovation in most developed economies. In the context of Europe, the service sector represents about 11% of GDP and contributes to a wide range of important sectors, such as research and development, construction, banking and insurance, and information and communication technologies.
A business service is a product or service that is delivered to a customer for a fee. These can be either consumer or enterprise products or services, ranging from outsourcing and software as a service (SaaS) to consulting, human resources, and legal services. This is the area where most of the value creation in a modern economy happens, although the physical goods that are made and sold represent only about 30% of total economic output.
This is also a growing area of the economy, as more and more services are delivered over the internet. For example, some companies offer a subscription to cloud computing, where the customer rents a server and the company handles data storage and backups. This reduces the capital investment needed for this type of equipment, while still providing the benefit of having the service on hand when needed.
These services are typically intangible, whereas most goods are tangible. The worth of a service is based on how it benefits the customer rather than on ownership and possession. This makes service businesses more dependent on employee skills, creativity and knowledge, which are the keys to success in this type of environment. A good example is the work of a mental health counselor, who cannot be touched but positively affects the client’s well being.
Other services that fall under this category are delivery and logistics, which ensure a company has the supplies it needs to operate, as well as transportation to get its products to customers. Another type of business service is facility management, which includes everything from janitorial services to office space rental and maintenance. Finally, there are services that allow a company to outsource certain functions it does not have the staff or facilities to do itself, such as payroll and accounting.
One of the most critical aspects of a successful service business is its ability to respond quickly to changing market conditions, which often require retooling processes, hiring employees, and introducing new products or services. In addition, it’s important to keep the customer in mind, because their satisfaction and retention is critical to a business that relies on its services for its revenue. This can be achieved by understanding the following four key principles of service quality: