Business services are a recognisable subset of economic services, and share their characteristics. In essence, they concern the building of service systems in order to deliver value to customers and act in their roles as both service provider and service consumer.
Unlike product-based businesses, which focus on developing and bringing new products to market, service-based companies work to meet the needs of their clients by providing them with an array of professional services. These include marketing and advertising services, consulting services, supply chain management, logistics and transportation services, and even event planning services. This streamlined approach allows companies to outsource non-core functions and improve operational efficiency while still retaining the competitive advantage of offering their customers unique experiences.
While there are many different types of business services, the most essential ones include support and customer care services, project management and coordination, and training and education. These essential business service types help companies to streamline their operations and enhance productivity, while staying competitive in today’s ever-changing business landscape.
The US business services sector encompasses industries that provide a wide range of professional services to other businesses, including IT, accounting, legal, insurance, and employment. Its total sales in 2017 were $950 billion, or about 11% of EU GDP. Business services can be provided by a variety of business units within an organization, including IT, human resources, and legal departments. However, they can also be delivered by external vendors, who specialize in one or more of these professional services.