Business services are non-physical activities that facilitate the conduct of a company’s business. They encompass a vast number of services from basic office support to complex financial and managerial functions, such as advising other companies on mergers and acquisitions. This is a vital sector that covers a large portion of the commercial world and provides valuable benefits to businesses that cannot be provided by goods and products alone.
There is a significant untapped potential of business services in the EU today. The European Commission has set up a High Level Group on Business Services to give a new impetus to policy development and enhance competitiveness in this sector. The European Commission has also taken various other measures to support this sector, including the services directiveEN*** which aims at eliminating barriers to cross-border services provision and facilitating growth in this important area.
A common example of a business service is a company providing pick-up and drop facilities for its employees from the railway station to the work place. This is a valuable business service that allows the employees to focus on their work without having to worry about getting to the station or finding a means of transportation to reach the workplace.
Other examples of a business service include professional services like legal advice or consulting, or financial services such as insurance and banking. The services industry is a major part of the economy and there are many jobs in this field that pay well, depending on the skill and experience required for the job.
Another important attribute of a business service is that it does not create any tangible or physical product, unlike goods and products. This makes it difficult to store or save these services for future use. Furthermore, a business service is consumed at the same time as it is produced. Therefore, the value of a business service can change over time as the market conditions for it change.
These changes can be caused by a number of factors, such as the availability of technology or the quality of the service itself. Business services providers need to be aware of these changes and continually evaluate their offering to ensure that it remains relevant and competitive in the marketplace.
There are different types of business services that a company can offer, such as information and communications technology, human resources, finance and accounting, and supply chain management. Some companies have a dedicated department that manages these functions, while others outsource them to external providers. Outsourcing can reduce costs and improve efficiency, but it may not be suitable for every business.
The definition of business services is constantly changing as the market evolves and new technologies become available. Regardless of the definition, there are a few core elements that define a business service: