Business services are activities that assist a business but don’t provide a tangible product. This can include anything from office supplies to marketing or event services, or even travel and hospitality. A business can hire these services to help free up time to focus on its core operations and improve efficiency or effectiveness.
The business service industry is a major contributor to global economic growth. Companies that provide these professional services can range from small, local businesses to multinational corporations. Business services can be physical or digital, and they can also be delivered in person or online. These services may be needed by a variety of businesses, from retail and manufacturing to banks and airlines.
Practitioner insight: Defining business services starts with understanding what your customers and stakeholders value from each service. This helps determine the KPIs to measure and track for each service. Start with a small set of pilot use cases, and build your service architecture around them to launch quickly.
Business services are often outsourced, because a company may not have the necessary expertise in-house to provide these services. This allows the internal team to focus on their core competencies, and outsourced providers can be scaled up or down as needed. They can also bring in specialized skillsets that the business may not have, such as data analysis or software development. In addition, they can offer a more cost-effective option than in-house resources, especially if the business needs to be agile.