Business services are things that a business needs to function but does not have the time or resources to do itself. These can include IT services, management services, facility management services, software and other professional services such as legal or accounting advice. The service economy is an important part of many economies and businesses need these services to thrive.
In some cases, these services are provided by companies that are owned by the business or other corporations. Other times, these services are provided by the government. The type of business service will depend on the needs and objectives of the business. For example, a company might hire an animal control service to keep pests out of their office and ensure the safety of employees or customers. Similarly, a company might use a cleaning service to make sure that their office is neat and tidy.
These types of services help to support and increase productivity in a business. They can also increase profitability by freeing up the company’s internal resources to focus on core operations. In addition, these services can lower costs by providing the business with access to goods and services that might otherwise be expensive or unavailable.
The service sector accounts for over half of the GDP in most countries and is a vital component of the global economy. This sector offers a wide range of products and services, including banking, insurance, transportation and waste management. It is essential to the functioning of any economy and business and provides valuable employment opportunities for millions of people worldwide.
B2B services are the activities that a business performs with other businesses. These activities are distinguished from the transactions that a business engages in with consumers and other businesses (B2C). Examples of B2B services include the procurement of raw materials, equipment or services by a manufacturing company from a wholesaler or supplier. These activities are also distinguished from the service of a professional to another profession such as a lawyer or consultant.
B2B services are a subset of economic services, but they have a distinct focus on the business needs of an organization. They are a key driver of competitiveness and growth in the world’s leading economies, providing jobs for millions of people. There are several challenges that the sector faces such as high labor costs, persistent legal barriers to cross-border trade and limited research and development. However, EU Internal Market legislation and policy actions are aiming to remove these barriers to create a more competitive environment for B2B services.