Business services are the tasks and activities that help to maintain a business but do not result in a physical product. Such business services are supported by information technology.
Service businesses are a large part of most developed economies and new technologies have expanded their reach from domestic to global. They also hire a larger share of employees than manufacturing or trade businesses.
The characteristics of business services are: Intangibility, Inconsistency, Inseparability and Consumption (production and consumption can be separated). All these characteristics make a service unique.
Intangibility: The intangible nature of services means that they cannot be touched but only experienced by the customer. Moreover, they are inherently inconsistent. For example, a mental health counselor’s advice may vary from the last time they talked with a client.
Inconsistency: The intangible nature of services means they require modification according to the preferences of the customers. For example, the number of edits a graphic designer makes to a logo will change depending on a personalized customer package.
Inseparability: The intangible nature of services means the same service can be consumed by different customers at the same time. For example, a warehousing company can offer a complete supply chain solution to its customers which involves warehousing, transportation, inventory management, packaging, labeling, and order fulfillment.