Business services are activities that benefit companies without producing a physical product. These may include information technology (IT) services, marketing services, supply related services and others. This supersector also includes language, translation, and interpreting services, which are necessary for businesses to communicate with clients, vendors and other stakeholders who speak different languages or have cultural differences.
These types of business services can be offered as a product or a service and are often outsourced to third-party providers. For example, a small company might hire a translation agency to handle all of its English-to-Spanish communication with clients, and a larger firm might contract with a construction management firm for building renovations.
The demand for business services has been increasing amid the COVID-19 pandemic, with employers seeking to outsource more tasks and take advantage of new communications technologies. As a result, the industry continues to grow and evolve at a rapid pace.
In a business-to-business (B2B) context, warehousing services are often integrated with transportation and logistics functions. For example, warehouses may sort bulk goods into customized lots, store products for various time periods, perform light assembly, mark prices and perform other value-added tasks.
Other examples of B2B business services include consulting firms, accounting services and marketing services. These types of businesses offer their expertise to other organizations and are a critical component to the success of any organization. As a result, their contributions are often intangible and hard to measure. For example, a consultant’s advice might lead to new business opportunities, and a marketing campaign might drive sales.