Business services refer to different activities that help businesses function without delivering a tangible product. These include management, information technology and utility services. They are a large part of the economy and are important for companies to be competitive.
Unlike products, which are manufactured by production companies, most business services are produced by service companies. These may be companies that provide consulting services or those that perform engineering and design work. Other common business services include human resource management, marketing and operations. These are often provided by professional services companies that employ experienced teams to meet client needs.
Another category of business services includes those that are primarily delivered by people. These are typically performed by employees of a company or independent contractors that are hired to perform specific tasks. Examples of this type of service include payroll, legal counsel, marketing consultants and IT support. These workers usually need to be highly skilled in their area of expertise and must be able to communicate effectively.
There are also a number of other types of business services that are not provided by professionals but by machines or software programs. These are usually referred to as utilities or intangibles. They include the delivery of electricity, water and gas to workplaces. These are important for keeping offices running smoothly and enabling employees to focus on their work.
Business service providers are an important part of the economy and play a role in creating new combinations of goods and services. In the European Union, they account for 11% of the total GDP. In addition, they are growing at a faster rate than manufacturing and trade sectors. They are contributing to the emergence of a “service economy” and have an increasingly important role in innovation.
This article discusses some of the most important and popular business services, including management consulting, human resource consulting, accounting and financial services, engineering and design, property and equipment maintenance, information and computer technology services, and advertising and graphic services. It also discusses some of the challenges that business services face.
Many of the largest companies in the world rely on business services to operate. These services are necessary for large firms to be productive, and they offer a variety of advantages over the alternative of operating as a traditional manufacturer. In addition, these services enable companies to focus on their core business, which can improve profitability and efficiency.
The various types of business services are divided into two main categories: business-to-business and business-to-consumer. These are different from consumer services, which are offered to the public and are regulated by government agencies. Business-to-business (B2B) services are mainly based on providing a value added to customers’ existing or future business processes.
A good example of B2B is the supply chain that connects a car manufacturer with its wholesalers and retailers. Other examples of B2B services are insurance, IT support and logistics. In addition, there are also professional services that provide advice on strategic issues.