Whether you’re running an airline, building houses or delivering pizzas, business services help keep the world running. These sectors include information technology, property management and consulting. They are a major part of the service sector that accounts for about 11% of the European economy, and they play a key role in enhancing productivity and competitiveness.
The main characteristic of Business services is that they support businesses despite not delivering any tangible commodity. These activities are usually performed by a third party, but can also be done in-house. They might be performed as a result of the need to manage or control business processes, or they might be part of a corporate strategy to increase productivity or reduce costs. Examples of business services are:
Services for the maintenance and improvement of a company’s infrastructure, such as data storage or network security. These services are typically used by a large number of employees, but are not considered core products by the company.
Services that are geared towards business customers and may be differentiated by features, quality or pricing. For example, a travel agency might offer premium business class flights.
Services that provide an organisation with the capacity to act in a productive and efficient way, such as accounting, human resources and logistics. This category also includes the provision of temporary workers and outsourcing. These are important components of the service economy, providing a valuable input to the production process and helping to create jobs in the wider economy.