Business services are activities that benefit companies without supplying a physical product. They are important to large firms because they allow them to focus on their core business activities and outsource labor that doesn’t fall under their expertise or capability. Examples of business services include warehousing, marketing, and inter and intra-departmental communication.
In recent years, business services have been booming around the world as more and more firms outsource these functions rather than perform them in-house. The industry has evolved rapidly to meet the needs of growing global markets and changing work patterns.
The key to designing successful business services is understanding the value they create for both internal and external customers. This will help you make improvements that increase their efficiency and reduce the costs associated with providing them.
There are many types of business services, but some of the most common include:
A digital-based service that can be provided remotely such as an online coach or freelancer. An in-person service that can be provided at a client’s location such as a landscaper, sewing business, makeup artist, or private fitness instructor. A share services model in which the same function is performed by multiple businesses within a larger organization to achieve efficiencies and cost savings. This is commonly done for functions that are common across multiple businesses, such as accounting and financial services or market research and analysis. Increasingly, firms are also outsourcing their warehousing services and integrating them with transportation and other logistics operations to expedite the distribution of goods.