The Business services sector represents one of the largest service sectors in Europe, accounting for 11% of EU GDP. It is a key contributor to European competitiveness in manufacturing and other service sectors by offering essential support functions that add value, drive innovation and create jobs.

Business services are a wide range of intangible services that are utilised by organisations to help them run their businesses efficiently. They are an important part of many industries including IT, banking and insurance. They are also referred to as business-to-business services and are typically provided as outsourcing contracts or through a third party. The Business services industry is growing rapidly and it has become a highly competitive market. This growth is due to the emergence of new technologies that allow businesses to offer their services over the internet, on mobile phones and through social media platforms. This has led to a large number of companies entering the market, many of which are start-ups.

Some of the main characteristics of business services include intangibility, inseparability and inconsistency. Since a business service doesn’t produce a tangible product, it cannot be stored and used at a later date like goods can. As a result, the provision of business services is often performed at the same time as it is consumed. This can lead to a direct interaction between the provider and consumer, which may influence the quality of the experience. This is a key aspect of the service economy, as it makes the interaction between customers and suppliers more personal and may increase customer satisfaction.

Inconsistency is another characteristic of business services as the same service can be different each time it is delivered. This is because of the fact that services are customised to meet specific needs. This is why it is crucial for business to invest in training and development of their staff, so that they are able to provide the best possible services to their customers.

A common type of business service is IT infrastructure, which can be anything from a cloud-based IT platform to an IT support desk. Other types of business services include management services, software as a service, work as a service and professional services. The last two categories of services are the most important, as they can provide an organisation with valuable advice and guidance on a variety of different topics from legal issues to top level strategy such as mergers and acquisitions.

Another important feature of a business service is its ability to be outsourced, which allows a company to save on capital expenditures while still benefiting from the expertise and skills of a third party. Outsourcing can also make a business more flexible, and help it adapt to changing markets faster. However, it is important for a company to maintain a close relationship with its business service providers in order to ensure consistency and quality of service. This can be done by identifying key performance indicators, setting clear SLAs and ensuring that all deliverables are clearly defined.