The business services industry is large and diverse. It includes the services that businesses use to conduct their operations, such as banking, insurance, transportation, warehousing and communication services. Businesses are increasingly relying on specialized business services more than ever before.
A service is a separately identifiable activity that provides satisfaction of a desire without the transfer of ownership of a tangible good. A service has a unique characteristics, including intangibility and a lack of consistent physical form. A service is a distinct form of value, differing from goods in that goods have both intrinsic and extrinsic value, while services are purely based on their exchange.
Companies provide a number of business services to both other companies (business to business, or B2B) and end consumers (business to consumer, or B2C). Some examples of these are consulting, technology support, marketing and advertising, and logistics. A company may choose to perform a few of these business services in-house, while outsourcing the rest.
Business services are a significant part of the economy. They support core business functions and enable companies to concentrate on their primary goals. This streamlined approach improves operational efficiency and drives growth. However, there are some challenges associated with running a business services organization. These include customer acquisition, delivering on customer expectations, managing costs, and creating differentiation. To be successful, business services companies must get four things right: