What Are Business Services?

Business services

Business services are activities that support the primary business offerings of a company. They can be offered internally by a business or outsourced to other companies. They don’t create or deliver any physical products, but help the business run more efficiently and effectively. Some examples of business services are IT management, human resources, accounting and marketing.

A common type of business service is a design firm that creates logos, signs, packaging, publications and web graphics for its clients. Another example is a utility service that charges commercial customers based on their power consumption. These types of business services allow businesses to focus on their core product offerings and reduce their operating costs at the same time.

Other business services include the renting or leasing of office space, employee benefits like medical and daycare, logistics services, waste management and IT management. Many of these are important for the overall productivity and competitiveness of a business, and they’re often used in conjunction with other services to add value to the company’s products.

Outsourcing business services is a popular way for companies to gain access to expert talent without hiring full-time employees. This allows the company to focus on its own operations and products while leaving noncore tasks to outside firms that specialize in those areas. It’s also a cost-effective solution for businesses that don’t have the internal infrastructure to provide certain types of services.

For example, a company that offers financial services may hire an outside accounting firm to audit its books and provide tax advice. Alternatively, an IT company may outsource its help desk and network support to a third-party provider.

In addition to reducing operational costs, outsourced business services can improve the quality of a company’s output. This is particularly true in IT, where it’s possible to find specialized talent that can provide the same level of expertise at a fraction of the cost of a full-time employee.

Unlike consumer goods, which are tangible and can be physically stored or transported, business services are intangible and can only be provided in the moment they’re needed. This means that a sales professional must use different techniques when selling a service compared to when selling a product, and it’s important for the client to be involved in the delivery process.

The New York State Office of General Services established the Business Services Center (BSC) in 2012 to increase efficiencies and cost savings by streamlining transactional Human Resources and Finance services that are common across agencies. The BSC is also working to strengthen the reliability of business services by leveraging the best of both public and private sector capabilities. The BSC will continue to develop and evolve as the needs of New York’s agencies change. For more information, visit the Business Services Center website.