Business services are various tasks and activities that help maintain a business, despite not delivering a tangible product. For example, information technology is a business service that assists numerous other business services like procurement, shipping, and finance. Business today are inclined towards specialized and exclusive business services as they are more affordable, convenient and practical.
A service business’ profitability relies on the perception of customers that it delivers value. This value can be intangible, such as convenience or friendly interaction. Alternatively, it can be tangible, such as a professional’s treatment of patients or a company’s quality control.
While it is difficult to measure the exact value of a business service, it can be estimated by measuring customer satisfaction and comparing it against competitors’ performance. A service company should strive to provide a better experience than its competitors, whether it is through extended hours, close proximity or lower prices.
Regardless of industry, companies depend on business services for marketing, production, safety, cost and convenience purposes. For example, a car manufacturer may outsource the production of its engines or transmissions. Similarly, a pharmaceutical company may rely on an outside laboratory to conduct research and development. Other examples of business services are warehousing, logistics and supply chain management, information technology and accounting. For example, a software company might offer services to help other businesses build and maintain their IT infrastructure. Lastly, a consultancy firm might help clients with financial projects or business expansion plans.