Business services refer to activities that benefit businesses without supplying physical products. Large firms especially rely on these services for marketing, production, safety, cost and convenience purposes. In addition, these services add value to goods and products and are a key component of the European service sector, which accounts for 11% of GDP.
Business service providers typically focus on a specific niche, ensuring that they have the expertise and experience to meet their client’s needs. Some of the most popular include logistics companies that take care of warehousing and fulfillment for eCommerce sites, design agencies that produce logos, signs, publications and other graphics for business customers, and engineering services that test product prototypes to ensure they meet industry standards. These companies also offer consulting services that help businesses improve their productivity and profitability.
Companies use outsourcing as a way to cut costs and free up internal resources. A business service provider might take on an entire department such as human resources or IT, or they might handle a specific project such as a corporate relocation. Outsourcing is a great option for companies that want to focus on their core competencies and expand their customer base.
While business services companies don’t make a physical product, they are essential for most companies to function and grow. They account for a significant portion of the global economy and provide support for manufacturing and other service industries.
A successful business services company requires strong leadership. In general, a business services company must balance the competitive autonomy of its line managers with the shared value of its business model. To accomplish this, senior management must be able to exert strong influence over the competing interests of revenue-generating business models and shared services managers. This type of leadership style enables the company to create an environment that maximizes individual performance and collective results.
In order to deliver a high level of service, a business services company must be able to document and measure its processes. To do so, it must develop an IT Service Catalog that outlines what services it provides to the business and how each is delivered. This helps the IT department and the business align their efforts, ensuring that IT assets are utilized in ways that help the company achieve its goals.
While many of the jobs in the business services sector require a high school diploma or GED certificate, some positions require a bachelor’s or master’s degree. A career in this field can provide a range of benefits, including a flexible schedule and the chance to work from home or anywhere that offers good Internet connections. Learn more about the day-to-day tasks of a job in business services by exploring Forage’s online job simulations. Our free simulations can help you determine whether a job in this sector is right for you.