Business services are activities a company needs to perform but does not have the capacity or capability to do itself. Companies use these services to improve their competitiveness and focus on core business functions. The service industry is the backbone of many economies, accounting for more than 50% of GDP in low-income countries.
Providing a high level of customer service is the key to success for any business service company. Whether a company offers cleaning or waste management services, transportation or IT support, business services are used by every company in one way or another.
The B2B (business to business) segment is a fast-growing sector in the global economy. The sector encompasses a large variety of industries, including consulting, market research, facility management, accounting and human resources. It also includes all the miscellaneous help a company may need, such as shipping and delivery services.
A company that provides a B2B service typically works with wholesalers or manufacturers. For example, a company that manufactures car parts may do B2B transactions with a wholesaler that supplies them with tires, rubber hoses and other materials necessary for production.
The broader definition of B2B encompasses all transactions between businesses and does not include direct consumer sales. It is important to distinguish between the different types of B2B transactions to ensure your company is using appropriate classifications when creating and maintaining its database. B2B transactions are often subject to complex rules and regulations, making it critical to have the right classifications in place.
