Business services are a broad category of services used by organizations to accomplish trade activities. They can be intangible or physical, and they include everything from basic utilities to advisory services concerning business financing and top level strategy such as mergers. Some common examples are IT services such as a cloud infrastructure platform, software and consulting, telecommunications and facility management. Other examples are a business travel agency, event planning and production services, food services that target businesses such as a catering service, and even design and manufacturing services like an engineering firm that produces a prototype of a new product.
Another key difference between goods and services is that in many cases, business services are produced and consumed simultaneously, so there is a direct interaction between the service provider and customer. This can greatly impact the overall experience of the service, such as if a customer dithers at a fast food counter, it can slow down service for everyone behind them. It can also impact cost and quality, as customers can influence the cost and quality of a service in many ways such as by paying less or more than they should, or by accepting a lesser level of quality.
Outsourcing business services allows companies to focus their internal resources on core functions and can save money on overhead costs. Additionally, it can free up financial and human resources to invest in more innovative products and projects. In addition, it can help businesses scale up or down as required, based on fluctuations in operational needs.