What are business services? In a nutshell, business services are activities that benefit companies without producing a tangible product or service. These activities are often carried out by external agencies. Here, we’ll look at the definition of business services, how they are categorized, and the types of services that are provided. Listed below are some examples of business services. You’ll also be able to see how they’re classified by end user type.
Business services are a subset of economic services
Economic services are a broad category that encompasses many activities. Many services are specialized and support the functions of a business, but they don’t deliver tangible goods. Information technology supports these activities. In addition to being a critical part of the economy, business services help companies save costs and improve performance. Businesses may outsource IT services or logistics to save time and money. The service economy accounts for more than 50% of GDP in low-income countries.
They are activities that benefit companies without supplying a tangible commodity
As defined by Philip Kotler in 1984, business services are those activities performed by companies that benefit other businesses without supplying a tangible commodity. A service is an activity that benefits another business, such as answering phones, but which cannot be seen or touched. While tangible goods can be sold, their value diminishes when they are not in use. Services also have no ownership or transferability; once purchased, they must be used.
They are provided by external agencies
Regardless of whether business services are provided by an internal agency or an external agency, a campus has overall responsibility for the contract. They must approve the contract and initiate re-negotiations if needed. They must also review the relationship between the External Agency and University, and approve any deviations from the template. The campus must also make sure the contract is properly executed and provided with adequate space for the External Agency.
They are organized by end user type
Businesses often utilize business services to outsource duties that require outside expertise. Business services are used to reduce the cost of hiring internal employees while focusing on internal goals. The services they provide are organized by end user type, including businesses, consumers, and other businesses. They provide a variety of conveniences and luxury items to their clients. Listed below are a few types of services. Read on to learn more about these types of services and their advantages for businesses.
They are sold to organizations
Business services are goods and/or services offered by businesses. These types of services represent a broader industry that has become a standard business model. Examples of these products and services include accounting, telecommunications, research agencies, software, and computer programming. Some businesses specialize in particular services, such as work-as-a-service or training. Other types of business services include financial and insurance services, including workers compensation insurance and bond issuance.