Business services are activities that help an organization accomplish its trade goals but don’t necessarily result in a physical commodity. This includes work that requires specialized expertise or equipment and that might not fall within the scope of an internal department. For example, a company might outsource the printing of promotional materials or a third-party logistics provider might manage warehouse fulfillment for an eCommerce operation.
Other examples of business services include translation and interpretation, IT support, staffing services, facility management, waste handling, and shipping. Many countries depend on the service economy for a large portion of their GDP.
The worth of a business service is intangible, and the work can only be performed when it is demanded. This differs from product-based businesses, where the products are stored for future use. Companies that operate a service business need to follow specific strategies for success.
This includes hiring the right people, tracking performance, and analyzing data. Students in online MBA programs learn to recognize these differences and develop the tool kit necessary to manage a service-based business effectively.
As with any industry, there are different types of business services. For instance, language translation services allow a firm to expand its client base to individuals who speak different languages. IT support workers are another type of business service that helps firms promptly troubleshoot computer and network issues so they can remain productive. Other types of business services are more personal, such as fitness facilities and massage therapy.