Business services are activities that assist a company but do not deliver a physical commodity. They help companies save time and resources by completing tasks that aren’t in their core competency. They can also help companies reach new markets and customers by leveraging the expertise of external service providers. For example, a software service can update features and improve security for a company’s technological devices. In addition to helping companies reduce overhead costs, business services can increase their productivity and profitability.
Businesses can hire employees to complete business services, or they can outsource those functions to third parties. This allows companies to focus on their specific goals and talents while relying on business services professionals to handle the rest. Business services can include a variety of tasks, from marketing to accounting. They can also be used for more complex projects such as developing a new product or creating a new website. Many business services are offered as a subscription or on an a la carte basis.
Some business services, such as payroll and HR support, can be delivered on-site. Other services, like IT support, can be delivered remotely. Many workers in the business services industry work from home or other locations with good internet connections. This can be a great option for parents who need to care for children or people who need a flexible schedule.
A large portion of the economy depends on business services. For example, banks, airlines and software companies all offer business services. These businesses provide critical products and services that allow other industries to function. Without these types of businesses, the economy would slow down and become less competitive.
In addition to providing valuable products and services, the business services sector is a major source of employment in the United States. According to the Bureau of Labor Statistics, this sector employs a significant number of people and has high growth potential.
The business services sector is a subset of the service-providing industries supersector group. It includes professional and management services, administrative and support services and real estate and rental and leasing services. Employment in the sector is expected to grow 2.1% in 2022. The sector’s high growth potential is driven by demand for outsourcing services from other businesses and by the need to meet compliance requirements in a wide range of sectors.
The business services sector faces a number of challenges. These include low average productivity and persisting legal barriers. However, EU Internal Market legislation and policy actions aim to remove these obstacles and stimulate competitiveness.