Business services are a group of activities that help businesses but do not necessarily result in tangible goods. They are a key element of the economy and large firms rely on these activities for all aspects, including production, cost, marketing, and more.
A service is a process that delivers benefits to customers by facilitating the transformation of their needs, physical possessions or intangible assets. They differ from products in several ways, the most important being that they cannot be stored and must be delivered to customers at their requisite times.
Service providers, such as a bank or a construction firm, need to have a clear understanding of what their customer wants and how best to deliver that. This knowledge can improve the quality of their work and reduce costs by ensuring that they deliver the most suitable solutions for the customer’s needs.
Some examples of business services include accounting, banking, insurance, warehousing, marketing and sales, and inter and intra-departmental communication. In addition to the above, a range of professional and personal services also fall under this category.
The services sector is one of the largest in Europe and plays a central role in the European economy. It contributes to 11% of GDP and is a major source of innovation in manufacturing and other sectors.
In the EU, business services are a growing sector and have considerable untapped growth potential. Despite low average productivity and persisting legal barriers, EU Internal Market legislation and policy actions aim at removing these obstacles to stimulate competitiveness in the sector.
To meet these challenges, business services are increasingly being offered via web platforms and systems or mobile apps. This has led to a surge of startups, many of which are focused on new technological solutions that can transform the industry and its business models.
Providing technical support to clients is a common example of this, with technicians and other professionals working to resolve computer or network issues. This is a great way for firms to ensure that they are not losing valuable time and productivity because of a problem with their equipment.
Insurance services, for example, are becoming a necessity for many organizations across the world. This is because they help companies mitigate financial risks and save money.
Another type of business service is real estate, which is a way for companies to find workspace that fits their requirements and budgets. For instance, many companies prefer to lease or rent a space rather than own it, so they can pay less for it.
These services also come in handy when companies need to remodel or expand their premises. They can hire a team of contractors to help with the work. These workers have the experience and expertise to get the job done safely and efficiently.
Similarly, landscaping agencies can be hired to design and maintain the landscape around a company’s premises. This saves the organization money by not having to buy or rent expensive landscaping tools and equipment.