The business services industry supports the productivity and operations of a company in various ways. This can include the IT industry which provides technical support, finance and accounting, procurement and shipping services, or marketing services like advertising and content writing. The responsibilities of these companies vary, but they all work to improve or maintain the operations of the businesses they serve.

Service businesses differ from product businesses in that they don’t sell a tangible good; instead, they provide an experience or take care of things that cannot be done by the consumer themselves. Typically, these businesses offer value in terms of meeting needs or wants that aren’t satisfied by physical products, such as teaching or a doctor’s treatment.

Many companies hire outside service providers for their business services, as the cost of in-house employees may be too high. This allows the company to focus on core activities and outsource noncore functions that could be more easily accomplished by a third party. There are many benefits to shared services, including cost reductions, improved communication and a more efficient use of resources. Shared services can also help with mergers and acquisitions by facilitating easier integration and helping to achieve synergies. The centralized management of shared services also makes it easier to identify areas for improvement and monitor performance. The New York State Office of General Services launched the Business Services Center (BSC) in 2012 to increase efficiencies and reduce costs by centralizing transactional Human Resources and Finance transactions across agencies.