Business services are any intangible services that serve as the backbone of numerous industries such as IT, banking, insurance and transportation. These services are crucial for the smooth functioning of businesses and organisations, but they do not provide a tangible product. Rather, they assist the business and its employees to carry out daily tasks without any hindrance. These activities are also referred to as noncore and non-productivity generating services, and they help reduce overhead expenses and allow companies to focus on their core competencies.
These intangible business services include everything from warehousing and distribution to order entry and processing, customer support, packaging and labeling and performing light assembly. They can be provided by either an internal company or an external partner, and they offer a value added experience for customers. This service sector also includes consultancy, technology transfer and training, and research and development.
The five characteristics of business services are as follows:
Intangibility – A person cannot physically touch or feel these services, but can only experience them. They do not have a consistent form like goods do, and they can only be performed exclusively each time. Production and consumption of services occur simultaneously, unlike goods which can be sold for a later time or store for future use.
The responsibilities of business services are diverse, and there is an array of career opportunities available in this industry. Examples of the types of business services include IT, legal and consulting services, human resources, shipping and warehousing. These services are utilised by many different industries, and they can be outsourced or delivered in-house.