What are Business services?

Business services are activities that help a business but don’t result in the creation of a tangible product. They are a key element of any company and encompass an extensive range of services, from procurement and shipping to finance and human resources. The business services industry is growing quickly and includes a wide variety of companies, from small startups to multinational corporations. Some of the most common business services are IT, accounting, and marketing.

All businesses require a number of specialised business services to function successfully. Known as business-to-business (B2B) services, they enable firms to improve operational efficiency and enhance customer experience. They can also facilitate innovation and drive growth by providing specialized expertise and knowledge.

One of the main characteristics of business services is that they are intangible and experiential. That means they cannot be stored like physical products for future use, and that consumers can only experience them at the moment of service delivery. This characteristic makes them unique and distinguishes them from other types of goods.

Business services can be provided by both internal and external providers. Outsourcing is a popular approach, as it can be more cost-effective and allows employees to focus on core tasks. Internally, companies may provide these services through shared service centers, which centralize front- and back-office functions to increase efficiencies and reduce costs. The New York State Office of General Services, for example, established the Business Services Center to streamline transactional HR and finance services across departments.