Business Services Explained

Business services

Business services are a set of activities that help organizations but do not always result in a tangible product. Companies rely on business services to complete tasks that they may not be able to do themselves, allowing them to focus on their strategic-based internal goals while outsourcing labor that requires expertise or equipment to outside professionals.

Business Service Types Explained

There are four distinct types of business services: pure service, shared services, business process management (BPM), and outsourcing. Pure service businesses produce no physical products, but transfer their service value to customers in the form of a written report, a management consultation, or a repair job.

Shared services are support functions that a business consolidates into one or more departments to provide a centralized infrastructure and enable higher value service delivery. These services often include human resources, information technology, supply chain, and other back-office operations.

The most common example of shared services is human resources, where HR employees are consolidated into a dedicated department to provide services like employee onboarding, benefits administration, and payroll processing. This allows business owners to achieve efficiencies in their human resource processes and reduce costs associated with these functions.

Another type of service is software services, which enhance and upgrade a company’s technological devices and software to improve productivity and efficiency. Software service professionals are often available to troubleshoot technology issues, including network and computer problems. They can also assist with tech training to ensure that a business’s employees are equipped to deal with any potential technology issues.