Business services are the support activities that enable an organization’s core operations. They encompass a wide range of support functions, such as accounting and financial management, IT services, HR and people management, and office management. Business services help companies save money, increase productivity and efficiency, and stay competitive.

The business services industry is a major economic sector, and it accounts for about 20% of GDP in the United States. It includes a diverse group of enterprises such as consulting, waste handling, janitorial services, information technology services, staffing services, and freight brokerage. In terms of employment, the industry is the largest source of private-sector jobs.

Like other industries, business services have unique characteristics that differentiate them from goods and products. The main differences are: 1. Intangibility: Business services do not involve the production of tangible goods. 2. Interaction: Services often require interaction between the provider and customer, which can influence the quality of the service experience. 3. Perishability: Services can only be used once and cannot be stored, so they are consumed in the same period as they are provided.

Service management is the process of designing, delivering and improving services to meet customers’ expectations and achieve organizational goals. It uses best practices to ensure high-quality service delivery, and it includes processes, policies, and procedures that govern how a company organizes its resources, manages risks, and improves operational efficiency. Service management is a key enabler of business transformation and digitalization, and it can be delivered through automation technologies such as RPA and AI.