Business services are the actions that help businesses but do not deliver a tangible product. These activities include a wide range of tasks such as marketing, consultation, logistics, waste management, staffing services and security services. Despite the ambiguity of the term, it is commonly understood that large firms rely heavily on these services for many of their activities.

Unlike physical products, which can be stored for future consumption, the production and consumption of business services is immediate. This makes it important to offer quality service to customers, so that they can be satisfied. It is also necessary to keep in mind that the demand for a service can change suddenly. For instance, if a service is offered by a hotel, there may be more demands during holidays than usual. Therefore, the quality of a service needs to be continuously monitored to ensure its success.

There are three types of business services: business-to-business, business-to-consumer, and social. Business-to-business services are provided between companies and charged at a fixed rate. These services can help the companies by operating their businesses, reducing costs, or increasing production. Business-to-consumer services are provided to individuals and are charged at a variable rate. These services can be useful to companies that want to expand their customer base and reach.

Many businesses use business services to improve their productivity and focus on core activities. These external providers often provide specialized expertise and experience that is difficult to replicate in-house. Furthermore, the cost of these services is often less than the expense of an in-house employee. However, there are a number of challenges facing these industries such as high operating costs and continuing legal barriers. These challenges are being addressed through EU Internal Market legislation and policy action.