A business service is a company-provided activity that benefits a company without supplying tangible goods. Large firms in particular rely heavily on these services to improve their marketing, production and safety while decreasing costs and increasing convenience. The industry includes a broad range of activities that are classified by different sectors, from engineering and IT to cleaning and logistics. Most modern theorists define a product-service continuum with pure service on one end and pure commodity good on the other, but most businesses operate in the middle, providing both goods and services to their customers.
The business services industry is a large, vital part of most economies around the world. This sector includes companies that provide goods and services to other businesses (business-to-business or B2B) as well as those that sell directly to consumers (business-to-consumer or B2C). The success of a business is often dependent on the quality of its business services, especially if the company focuses on providing them at lower cost or with greater speed than its competitors.
Many of the same techniques that have proven successful in building a productive and profitable product-based business are also crucial for the success of a service-based company, although new tools have been developed to accommodate new kinds of service environments. Most importantly, these tools recognize that the customer isn’t just a passive participant in operational processes. For example, a customer who dithers while ordering at a fast food restaurant will have an impact on the speed and quality of service for everyone behind him.
An important type of business service is a professional service, which encompasses all the services offered by law firms and accountants, among others. Another common kind of business service is an insurance service, which covers a company’s property and employees against risks like fire or theft. This is essential for any business, and the right insurer can offer valuable coverage at a reasonable rate.
Other types of business services include translation and interpretation, IT support, and facility management. Translation and interpretation services help companies reach a wider variety of clients, while IT support workers help businesses resolve technical problems as they occur. Finally, facility management services can provide a wide array of workplace amenities, from workout facilities to day care centers.
Some of these business services are necessary for a company to function, while others are more optional, depending on the needs and preferences of a particular firm. For instance, a company that wants to hire an IT consulting firm will need to provide it with the details of its operations and its IT infrastructure to ensure that it can effectively communicate with the consultant. It also needs to decide whether it will want the consultant to be covered by workers’ compensation insurance in case of injury. Similarly, it will need to determine whether to offer in-house childcare or transportation services to its employees. Other than these basic requirements, the choice of business services will largely depend on the industry and the location of the company.