Business services are the non-physical products and services offered by businesses to their customers or clients. These services can range from basic utilities like electricity and gas, to a consulting firm’s advisory services regarding business financing and top level strategy. The services are provided in a variety of formats from face to face at a company’s retail or office space, to virtual delivery over the internet. These services can be very specialized and bespoke to the needs of each customer, or can be more traditional in nature and include services such as IT support, marketing and advertising, staffing, facilities management, consulting and financial services.

Business service companies are vital to the world economy, providing 11% of the European Union’s GDP. They are the largest sector in the service economy, and are increasingly being used to add value to products through new combinations of goods and services. The industry is transforming rapidly as technology, digitalization and globalization continue to impact the economy and society at large.

In some cases, business services are the only way for a product or good to reach its market, especially small-scale businesses that do not have the resources to create their own products. For example, a startup computer software company might need to hire business services to write code and develop a prototype for its new program before it can start selling it to other businesses. In this case, the business services would be a valuable investment as it would enable the software to be made available to a wider audience, increasing its sales potential and ultimately its revenue.

Another benefit of a business service is that it can reduce costs by outsourcing non-core functions and allowing the business to focus its resources on core activities. For example, a company can outsource its supply chain management to a third-party, which will reduce the need for a dedicated in-house team. This will save the business money on salaries, equipment and other overhead costs.

The most important aspect of a business service is that it is not a tangible product and does not produce any physical output. This means that a business service cannot be stored or held for future consumption like a physical product, and must be delivered at the same time as it is being consumed.

This also makes it difficult to create a standard definition for what constitutes a business service. In addition, the definition of a business service will evolve over time as businesses and their needs change. This is a key reason why nimble processes are essential for business services, as they allow employees to rapidly adapt to changing requirements without reinventing the wheel each time. Nimble processes enable the business to keep up with evolving demands and remain competitive. In fact, this is the primary reason why many business services are now delivered as a service rather than in-house. This allows organizations to focus on their business services and provide high quality products and solutions to their clients.