Business services are activities that benefit companies without producing a tangible commodity. Examples include human resources, information technology, and supply chain management. Companies often outsource these services in order to save costs or increase efficiency.
The service industry accounts for a significant portion of the economy in many countries. Some of the most important business services are banking, insurance, transportation, cleaning, and waste management. The growth of these industries has accelerated due to the growing need for outsourcing.
Defining Business Services involves finding out who represents the customer in the Service process and what their needs are. It also entails defining what the Service is and its positioning in the market, which helps in creating a successful business model for the company.
Some businesses consolidate their support functions into centralized groups called shared services. The most common example of this is human resources shared services, which allow companies to achieve efficiencies in employee onboarding and payroll processing by centralizing these functions. Many organizations also utilize finance shared services to lower operating costs by combining accounting and financial processes.
Other examples of Business services include tech support, which can help companies quickly solve technical problems for employees and customers. These types of services can be performed on-site or remotely. Likewise, some businesses provide translation or interpretation services to help employees and clients overcome language barriers.
Other business services include utilities, which allow companies to obtain essential supplies such as water, electricity and gas. Additionally, companies rely on warehousing services to manage their inventory and transport goods to customers. Lastly, some companies hire caregivers to work on-site and offer in-office day care to help employees maintain a healthy work-life balance and save time.