Business Services and the Industries That Use Them
Unlike product-based businesses that focus on introducing new products to the market, business services companies work with clients to provide custom solutions. These services include training services, software development, event planning, consulting services and communication. Often, these firms need less start-up money than the typical company that produces physical goods because they do not have to invest in production equipment.
Almost every business requires at least some non-financial support services to operate. These can be provided in-house by departments such as information technology and marketing, or they may be outsourced to other companies that specialize in those particular areas. Business services can be as varied as the industries that use them.
A graphic design firm that provides logos, signs and publications for corporate clients is a business service. So too is a utility provider that charges commercial customers based on power consumption. Other common business services include catering, food and beverage distribution and logistics, advertising and marketing and waste management.
The professional and business services supersector is the largest component of the service-providing industries industry grouping. This subsector includes jobs in accounting, legal, human resources and information technology, as well as engineering and technical services. It accounts for approximately 40% of total employment in the industry grouping, and about 20% of all private sector employment. This sector also provides important economic indicators such as wages, employment and labor force participation.
In terms of industry structure, business services are more diverse than other sectors in the economy, containing a larger number of small businesses. This diversity is partly due to the fact that these businesses offer a wide range of highly specialized and customized services. Some of the most popular service industries include marketing, IT, staffing and consulting.
Many of these industries are growing. For example, the need for IT and management consultants is increasing because of a greater demand for cloud-based services, such as analytics, automation and artificial intelligence (AI). Another industry with growth potential is business process outsourcing, which involves contracting out business processes to other organizations that are better equipped to handle them.
Those who enjoy working closely with people should consider a career in business services. But it’s important to understand that this type of work can be stressful and fast-paced, so if you don’t thrive in a high-pressure environment, it might not be the right fit for you.
Regardless of the industry, business services employees need strong analytical skills to perform their duties. They also need to be creative to solve problems and improve processes. In addition, they should be able to communicate effectively with their clients in order to deliver value and meet customer needs. Finally, they must be comfortable working in a team environment. For those who want to build a solid foundation for a successful career, a bachelor’s degree in a related field is a good idea.