Business services refer to activities that support a company’s core operations but do not produce a tangible commodity. Examples include human resources, financial services and information technology (IT). Many businesses choose to consolidate their support functions into a single department, known as shared services. This can help improve service delivery to the organization and its employees and reduce costs and inefficiencies.
Companies outsource their business services to third parties for a variety of reasons. These providers may offer specialized expertise that would be difficult or impossible to build in-house. In addition, outsourcing can free up valuable internal resources to focus on critical, high-value business tasks. Business service providers can also scale up or down in response to changing output needs, which can be especially helpful for seasonal enterprises.
There are four critical elements in a successful service business: customer relationship management, operational process design, organizational structure and culture, and marketing and sales. However, the best practices in these areas are constantly evolving, and it’s challenging for sophisticated managers to keep up with the latest approaches.
Some examples of business services are translation and interpretation, IT help desk services, and construction crews that renovate or expand workspaces. These services can save businesses time and money because they eliminate the need to purchase or rent expensive equipment. They also enable companies to reach a wider range of clients, who speak different languages.