Business services are activities that benefit companies without resulting in a physical product. These activities are essential to company operations and can include anything from marketing and production to safety, cost and convenience. Companies often rely on business service providers to complete tasks that fall outside of their expertise or capability, such as outsourcing a consulting firm that provides expert advice and labor for a fee.
Some common examples of business services include:
The most distinctive characteristic of business services is that they are intangible, meaning they don’t result in a tangible product or inventory. Additionally, they are characterized by inseparability and inconsistency because they’re often provided on a customer-specific basis. Unlike goods, which can be stored for future use, services must be provided and consumed simultaneously to satisfy demand.
Because of these characteristics, business services require a higher level of customer involvement than other types of products. Customers must be involved in the operational process to clarify requirements, communicate expectations and set service-level agreements. In addition, customer input can also affect the costs and quality of a service. For example, if one person in a queue at a fast-food counter dithers and takes longer to make their selection, it can slow down the service for everyone behind him.
Companies use many different types of business services to improve their work environment and productivity. For instance, companies rely on utility service businesses to provide water and electricity for their workplaces. Others rely on design services to create logos, packaging, publications and other graphic materials. Many companies also need maintenance services to repair equipment, and tech support professionals to troubleshoot issues with computer networks or software.