Business services are various activities that help maintain businesses despite not producing any tangible product. These activities include warehousing, information technology, marketing, and miscellaneous assistance for companies. The industry accounts for a large portion of the commercial world and has become one of the most prominent sectors in economy.
The service sector is a third-tier industry in economic theory, after the primary and secondary industries. It is considered a major part of the economy because it encompasses many industries that provide experiences, consultation, and advice. It also includes a variety of other specialized activities.
One of the main characteristics that distinguish business services from goods is their intangibility. Goods can be stockpiled for future use, but business services are delivered only when they are needed. This means that a company providing business services can never be guaranteed to have a consistent flow of work.
Another important characteristic of business services is their dependence on customers. A successful service organization is dependent on its customers’ input and feedback to determine costs, efficiency, and quality. For example, a customer who dithers at a fast-food counter can slow down the delivery of service for everyone behind him.
In addition to customer-dependent characteristics, business services are also labor intensive. Because a company provides business services to other businesses, it must pay its workers well. This is to encourage loyalty and ensure that the company will continue to deliver high-quality service. The company must also comply with labor and wage-and-hour laws to protect its employees.