The Business Services Sector

A company’s business services are the support functions that enable a company to provide its products and/or services. They are not physical in nature and are mainly related to knowledge, interaction and expertise. Unlike goods, which are tangible, business services do not have a fixed form and can’t be stored for future use. This makes the design process for services different from that of a product. Service businesses need to focus on the needs of the market, and offer services that customers value highly.

As a result, the industry is extremely dynamic. Companies often change their strategies or even dissolve if they can’t meet customer demands. In addition, they must constantly adapt to changing laws and regulations. This can be a challenge for both established and start-up firms. Nevertheless, there are several benefits of being a business service provider: higher profit margins, the possibility for recurring revenue and the opportunity to upsell additional services.

In addition, the sector offers a variety of career options. For example, you can work in the IT industry to provide technical support for a company’s computer systems and networks or in the finance industry to handle accounting, taxes, payroll and investments. Alternatively, you can work in the procurement and shipping industry to ensure that a company has the material supplies needed for operations or retail product for sale to customers. You can also choose to work in a field such as management consulting, which provides advice and labor for a fee or in human resources to help companies develop their employees and improve performance.

The biggest companies in this sector include ADP, Allegis Group and ManpowerGroup (all based in the US), Adecco and Randstad (both based in Europe). Other large providers are outsourcing firms that specialize in offering services such as office administration, personnel hiring and placement, security, travel arrangement and cleaning. Some of the smaller companies in this industry are landscaping or pest control firms, staffing agencies and waste removal and recycling companies.

While the responsibilities of business services industries vary from one company to another, all offer the same fundamental benefits: a flexible workforce that can respond to changing needs, increased productivity and reduced costs. In fact, many organizations today consider outsourcing as a strategic option to increase flexibility and reduce operational risks. In addition, companies in this sector have a relatively low barrier to entry. As a result, competition is fierce, especially in the lower-end of the market.