The Business services industry is a broad category of industries that provide support functions to other businesses. Companies in this industry offer everything from consulting, property and equipment maintenance, financial and accounting services, advertising and graphic design, to transportation, waste handling, staffing services, logistics and administration. Every business needs a variety of these support services to function properly. These companies often compete by offering a competitive pricing structure and a superior level of customer service.
The difference between business services and economic services is that whereas economic services are delivered as a physical commodity, business services do not produce a tangible product. Instead, they deliver outcomes and experience-based value to customers. This makes it difficult to measure their value, as it is not based on the quantity of goods or materials produced.
This also means that businesses in this sector can outsource their services to other companies and do not need to invest any money into producing their own products or services. This has become a popular way for businesses to save on their costs, as it is more effective and efficient to leave some of the work to professionals than trying to do everything in-house.
The industry is growing due to a number of factors. Increased affluence is driving demand for services such as dry cleaning, lawn care and carpet cleaning. Increasing numbers of women in the work force are resulting in greater demand for services such as child care and housekeeping. In addition, as people continue to focus on their careers and strive towards a balanced life, they are willing to pay for services such as hair and nail care.
Another factor in the growth of the industry is the globalization of business processes and operations. As companies expand overseas, they require more support services from the local economy. This is a great opportunity for businesses in this industry as they seek to meet the demands of the local markets.
However, as the economy declines, consumers cut back on their spending and many of these services are eliminated. For example, a consumer may decide to stop getting their oil changed at an auto shop and opt to do it themselves. In times like these, it becomes even more important for businesses in the industry to prove their worth to customers and convince them that they need their services.
The New York State Office of General Services established the Business Services Center (BSC) to increase efficiencies and reduce costs by centralizing transactional Human Resources and Finance services that are common across agencies. The BSC is a valuable asset for New York State agencies and the business community as it helps to ensure that employees can focus on core mission activities. It also serves as a model for other states and private organizations.