The Business Services Industry

The Business services industry encompasses all industries that support the operations, infrastructure and productivity of a company. It includes industries such as IT, human resources, marketing, transportation and warehousing. These industries provide value by increasing the ease with which a company conducts its business, such as with better communication, less time spent on mundane tasks and increased efficiency.

Companies often hire business services providers to help them with noncore functions that require specific expertise that a company doesn’t have in house. This allows the company to focus on its strategic-based internal goals and outsource the work that isn’t core to its operations. This helps the company reduce costs, focus on growth and increase profits.

Outsourcing business services also allows the company to save money, as it does not have to invest in expensive equipment or software to provide these functions in-house. This can be particularly beneficial for small businesses that might not have the budget to provide a wide range of professional services in-house.

Business services can also include activities that provide convenience and luxury. These are often referred to as business amenities and can include items such as on-site gyms, dining facilities, transportation and a variety of other features that offer employees a more enjoyable working environment. This is important for employee retention and satisfaction, which can directly impact a company’s bottom line.

As a part of the service-providing industry supersector, the professional and business services sector is one of the largest employment sectors in the economy. It employs about 8.5 million people and generates more than $1 trillion in revenue. This sector offers a variety of benefits to the economy, such as increasing efficiency and reducing waste. It can also boost a country’s competitiveness by enhancing the value of goods and services, such as by adding a digital component.

The major characteristics of business services are intangibility and customer involvement. Intangibility means that services cannot be stored like inventory for future use, and customers must participate in the process of acquiring them. This participation can take a number of forms, such as by purchasing a service, attending an event or using a product that incorporates a service.

Some examples of business services are marketing, technology and legal services. Many companies hire marketing firms to help them create and execute a strategic plan that will achieve their business goals. This is a common practice because it’s more cost-effective for a company to outsource this function rather than hiring in-house marketers.

Other examples of business services include IT, human resources and consulting. IT services are used to improve the functionality and security of a company’s computer systems and networks. Human resource services are used to manage the company’s payroll, recruiting and training processes. Consulting firms provide expert advice and guidance on various issues that might affect a company, including strategy development, IT infrastructure, regulatory compliance and corporate governance. The Business Services Center (BSC) is New York State’s central office for processing human resources and finance transactions that are common across agencies.