Business services are a broad category of tasks and activities that support an organization but do not produce a tangible product. They are usually accompanied by IT infrastructure and software to align with internal needs, such as procurement and finance, and help drive business goals and profitability.
Business service providers (BSPs) rent software applications to companies and manage a variety of back-office functions, such as mail delivery, payroll, finance, building security and human resources. BSPs can also provide customer-related services, such as contact centers or call center management.
Difference between goods and services:
Goods can be stored for future use, but services cannot. They have to be delivered to customers when they demand them.
Intangible products are not physically present and can only be experienced by the consumer. The consumer can only feel the favourable experience.
Inventory: The person can only have a limited number of services in stock at a time, but cannot store them for the future.
Consistency: The service provider should be able to deliver the same service each time it is demanded.
Inseparability: The production and consumption of the service take place at the same time.
Business services are one of the largest sectors in Europe, bringing together a wide range of industries, including transport and logistics, real estate, utilities and construction. These services contribute 11% of EU GDP. They are particularly important in the European competitiveness of manufacturing and other service sectors, playing a central role in’servitisation’.