How Businesses Can Benefit From Business Services
Business services are a large industry, covering many different types of businesses that provide support to other companies. These activities often do not involve the sale of a tangible product or service, but rather offer intangible value such as consulting, software development, property management, financial services, waste handling and shipping to name just a few. These activities are important because they provide a way for companies to improve productivity and focus on their core functions.
The Business services sector has a significant untapped potential. While it currently faces low average productivity and persisting legal barriers to trade, EU Internal Market legislation and policy actions aim to remove these obstacles and stimulate competitiveness in the sector.
A business service is any activity that enables companies to do their work more efficiently or effectively. These include, but are not limited to, IT services such as data analytics, software development and cloud computing; management services such as onsite defensive IT training and facility management services; and professional services such as legal advice. They can also include more personal offerings such as perks for employees like workout facilities, relaxation areas or transportation.
These services can be delivered either directly to the company for which they are provided or indirectly through a third party. Direct delivery of a business service can reduce costs by eliminating the need for the company to buy its own equipment or hire additional personnel. For example, a construction company that provides business services to other businesses may do this by providing its own workers, removing the need for the hiring company to purchase or rent pricy construction tools and thereby save money on labor.
Another way that businesses can benefit from business services is by using them to reach customers in new or underserved markets. For example, a company that is looking to expand into a new geographic area can use business services such as translation or interpretation to make communication with customers easier.
A company can also outsource some of its internal operations to a business services provider. This can save the company time and money by allowing them to concentrate on their core competencies. For example, a company that is expanding its manufacturing operation may outsource the design of its products to a business services provider. This allows the company to focus on production and reduces its need for skilled engineers in-house. It may even allow it to contract with a less expensive firm to do the design work, saving money on employee salaries and benefits. Finally, a company that needs to renovate its offices can outsource the construction of its new space to a business services company. This will help ensure that the project is completed on time and within budget. It can also reduce the risk of errors or safety issues that could arise from attempting to do the work itself.