A business services industry is a service-providing industry sector, which provides support functions to other businesses and is not associated with manufacturing. These functions include advertising, marketing, consultation, logistics (including travel and facilities), waste handling, staffing services, shipping, administration and security services. Nearly every business in operation requires some level of these services.
The business services industry is a subset of the service-providing industries supersector. It is also part of the economy-wide service sector and contributes 11% to GDP.
In contrast to the product-oriented manufacturing and retail sectors, which are classified in other industrial sectors, all work related to money and assets is classified under Business services. This includes all the services a company might need for running its operations, such as banking and insurance.
Unlike goods, which can be stored for future use, all services are produced and consumed at the same time. This means that customer expectations and demands can vary at any given time. Therefore, good customer service is essential for companies offering these services.
Another common type of business service is logistics and warehousing, which help businesses deliver their products to customers as quickly and efficiently as possible. These functions might involve a lot of paperwork, but they are important for a smooth supply chain. These services are often outsourced to specialists, which can save businesses time and money. Moreover, outsourcing these tasks allows companies to focus on their core competencies. This helps in improving overall productivity and efficiency, as well as opening up new channels for business growth.