Business services are intangible offerings provided by companies to other businesses. They include information technology, human resources, marketing, consulting, and logistics support services. These services allow organizations to focus on their core business activities and enhance operational efficiency. Unlike goods, which can be stored and sold at a later date, business services must be delivered when requested by the service consumer. The business services industry is a significant contributor to the economy and is expected to continue to grow rapidly.
Business service providers offer a wide range of intangible offerings to their customers and clients. They include data analytics, digital marketing, consulting, customer support, and more. In addition to enhancing operational efficiency, these services can help organizations reduce costs and drive growth. The demand for business services is driven by a desire to outsource non-core activities, evolving cost pressures, and increased strategic focus among companies.
The industry is divided into several sub-sectors based on their type, size, and region. Some of the most prominent sectors are financial, technology, and professional services. Within the professional services sector, firms such as law firms, accounting firms, and management consulting companies are most prominent. The industry is also characterized by a low barrier to entry for new companies, allowing them to compete with established players in the market.
In addition to the above, business services can be categorized by their delivery model and customer involvement. The most common delivery models are IT service and process as a service, IT service management, and consulting service. IT as a service is a cloud-based IT service that is offered by a service provider to customers on an as-needed basis. This business model offers customers the ability to control IT costs and reduce infrastructure investments.
Process as a service is an IT-based business services model that delivers value to clients by combining multiple IT services into one packaged offering. This approach allows companies to reduce IT infrastructure and operational costs, while improving security and agility. In addition, this model enables companies to quickly scale their IT service offerings in response to changing business requirements.
Business-to-business (B2B) services are interactions between trade organizations, such as between a wholesaler and a manufacturer or between a distributor and a retailer. B2B services are different from business to consumer and government-to-business transactions, as they involve a more complex relationship between two parties. This interaction may include the provision of services such as logistics, transportation, and warehousing. In some cases, B2B services may also involve value-added activities such as sorting and packing bulk goods into smaller lots for shipment, light assembly, and labeling.
The Business Services Center is New York State’s central office for processing human resource and finance transactions that are common across agencies. The Office of General Services established the center to increase efficiencies and reduce costs while supporting agencies as they focus on their mission-driven work. To learn more, visit the Business Services page on SL1 and click the star icon next to a service to add it to your favorites list.