Business services are activities that benefit companies without delivering a physical product. They provide a number of benefits, including marketing, production, safety, cost and convenience. They are often outsourced to third parties, which allows a company to focus on its core competencies while leaving other responsibilities to others. Some of the most common business services include payroll, IT support and legal services.
In addition to being outsourced, these business services are also sometimes performed by in-house employees, which can help a company save money on salaries and other expenses. The definition of a business service can vary depending on the industry, but generally, it includes any activity that does not directly involve the sale or production of goods and does not require specialized knowledge. Examples of business services include consulting, training and logistics.
Businesses need several kinds of business services to operate effectively, from cleaning and maintenance to IT support and recruitment. These activities can help to increase productivity and improve efficiency, as well as reduce costs. For example, some companies use courier services to ship merchandise and documents. Others use IT support providers to maintain their computer systems and networks. Still, other companies employ cleaners to keep their work spaces tidy and comfortable.
The Professional and Business Services supersector includes the following subsectors:
These industries offer a wide range of professional and other support services to organizations operating in other sectors. The industry accounts for nearly a quarter of all employment and more than half of the total economic output in the U.S. It is the fastest growing sector of the economy. The industries in this supersector have a high degree of skill and depend on highly educated staff. They are also characterized by rapid growth, and many firms are small or medium-sized. The industry is also subject to intense competition from outside the United States. As a result, wages and employment have declined in recent years.