Business services are tasks and activities that support a business, yet do not result in the production of physical goods. They assist businesses in their trade functions, such as banking, insurance, transportation and warehousing. Today, more and more businesses are relying on specialized business services to complete their tasks.
The term “services” is derived from the Latin word for “to serve.” It’s used to distinguish activities that provide benefits, but do not result in the production of tangible goods or assets. Examples of services include legal advice, information technology, and accounting.
Service industries are a key part of the European economy, contributing 11% of GDP. They are essential to the competitiveness of manufacturing and other sectors, but they are often lagging behind in productivity growth and remain subject to persisting legal barriers.
These industries employ a larger proportion of people than manufacturing or trade industries and have grown increasingly global thanks to new technologies that allow them to deliver their products across the globe. They also play an important role in’servitisation’, enhancing the value of product through new combinations of goods and services.
Some of the most common services provided by business services companies are IT and telecommunications, management and professional services, and outsourcing. IT services, for example, include software that upgrades the security of a company’s technology devices or helps customers use their computers and phones more efficiently.
Several companies hire IT services professionals to help them develop computer systems or networks, improve employee communication, or troubleshoot computer issues. Tech support workers can also be found at call centers, helping businesses answer customer inquiries promptly and solve problems.
They can work remotely, allowing them to stay at home or in other locations with good internet access. Many of these jobs offer flexible schedules and pay well, according to data and research firm Statista.
Business-to-business (B2B) services are sold directly to other businesses, while business-to-consumer (B2C) services are sold to consumers. B2B services help businesses achieve a goal that would be difficult for them to accomplish on their own, such as reducing their operating costs or improving their sales.
The service industry is a growing industry that is projected to grow by 2.1% per year through 2020, the Bureau of Labor Statistics reports. In addition to job growth, service industry employees can enjoy a variety of benefits, such as flexible work hours and access to new opportunities.
Generally, service industries are more regulated than other industries and can be taxed. They are also less likely to be impacted by economic recessions or market shifts than other industries, but they can suffer from slow growth and undercapitalization.
In most cases, service professionals need excellent interpersonal skills to provide superior customer service. They must understand how to communicate clearly and concisely with clients, and they need to treat their clients with respect.
They also need to be able to problem-solve and find creative solutions for challenges they face. These are all essential qualities for the successful delivery of a business service.