Business services are intangible services that support a company’s operations and provide value to customers. They can include IT services, banking services and insurance.

Service businesses can be a great option for entrepreneurs because they typically require less capital to launch than product-based firms and offer the fastest path to revenue generation. However, success in a service business requires an effective marketing strategy, excellent customer service and the ability to continually improve.

The intangible nature of business services makes them difficult to track and control. In addition, since the provision of business services is based on interaction between humans, inconsistency is often inevitable. Furthermore, because they are provided in response to a customer need, the interaction with the client may be influenced by factors that cannot be controlled by the provider, such as fluctuations in demand or unplanned events.

Companies that outsource business services can reduce costs and improve efficiency. They can also focus on their core products and avoid spending money on noncore activities. These benefits can help companies increase their return on investment and improve competitiveness.

Typical examples of business services include IT services like IT consultancy, software development and IT outsourcing, management consulting and business process outsourcing. Additionally, services such as IT infrastructure and security, leasing of assets, telecommunications and other business support functions can be considered as business services. Other examples of business services are work as a service that involves charging a recurring fee for a specific project, such as a software implementation, and professional services such as legal advice.