Business services are various tasks and activities that help maintain a business but do not provide any tangible product. These include IT, management, consultancy and many other services that companies require to run efficiently. Some of the most common jobs in this field are consulting, financial and accounting, computer, advertising and information management. The demand for these jobs is steadily increasing as businesses become increasingly reliant on technology and outsource their non-core functions to save time and money.
Business services differ from consumer services in that they are more specialized and tailored for specific needs. They can also be offered at a lower price than consumer services due to their uniqueness and the need for them to cater to a specific clientele. For example, a company that offers IT support for business customers may charge less than a similar service offered to consumers because the former is more bespoke and requires a higher level of understanding from the provider.
Another unique feature of business services is that they are intangible, and unlike physical goods they cannot be stored like inventory for later use. This also means that service production and consumption happen at the same time, versus the separate processes of producing and consuming tangible products.
While the definition of business services is broadly defined, they are essential for a growing economy and contribute to about 11% of EU GDP. They play a crucial role in the’serviceitisation’ of the economy, with new combinations of services creating additional value for both businesses and consumers. There is a lot of untapped potential in the industry and efforts are being made to remove barriers to competitiveness through internal market legislation and policy actions.