Business services are a wide range of tasks and activities that assist businesses despite not producing a tangible product. They can be performed either in-house or externally, and are typically specialized in one or more areas of business. For example, a marketing agency may offer specialized service for a small manufacturing company.
These diversified tasks can include IT management, accounting, supply chain management, human resource services and a variety of other support functions. These non-tangible assets are known as intangible because they cannot be physically touched, but they can provide an excellent way for companies to cut costs and focus on a strategic-based internal goal while still maintaining the ability to operate.
There are five characteristics of a Business service. They are intangible, have a low level of predictability and control, require customer involvement, have a low margin, and require a significant investment. In addition to these, they are often characterized by a unique set of circumstances that are distinct from goods and services, such as the inability to stock them for future use and the fact that they can only be delivered upon demand.
Some examples of a Business service are the use of a catering company for a corporate event, a third-party logistics provider taking care of ecommerce fulfillment, and an interpretation agency that provides translators for meetings and seminars. These services help to improve the quality of life for employees by reducing stress and allowing them to work on a more productive basis.
Financial services are another common business service. These can encompass everything from bookkeeping and tax preparation to lending and investments. They can also involve financing the purchase of new equipment or working capital for a new project. Insurance services may be a part of this category, providing coverage for company property or employee health.
Other important business services include the use of an IT consulting firm for help with a software project, a temporary worker agency to staff events and meetings, or a landscaping company to create and maintain an outdoor workspace. These services allow companies to save money on costly in-house resources and concentrate on the core competencies of their business.
A final common business service is the use of a management consultancy to help train an organization’s managers and professional teams. The use of these services can increase efficiency and ensure that a business is following best practices in its operation and management. In addition, these companies can also assist with the development of a service-based strategy and provide insight into how to best implement it. They can also serve to reduce the risk of an organization’s failure to meet its goals by helping to identify key obstacles. This can include legal barriers that must be overcome in order to expand into a different country or region. This can be a particularly useful tool for small and medium enterprises that may face challenges when entering foreign markets. This type of assistance can help them avoid costly errors and improve their chances of success.
