Business services are a subset of economic services. While their characteristics vary, they share some common attributes. Businesses are concerned with building service systems and providing value to customers. They also act as both a service provider and a service consumer. The nature of the services can be categorised according to geography and end users. Below are some of the common types of business services. Read on to learn more about them. But first, what are business services?
Business services are used by organizations to accomplish their trade activities
In the world today, services represent two-thirds of global GDP and attract more than three-quarters of foreign direct investment. It is the largest sector in the economy and is responsible for the creation of the most new jobs globally. Since trade has existed for many centuries, organizations have relied on services to accomplish their trade activities. International transportation, for example, is as old as trade itself, while financial and insurance services came later.
Businesses also rely on business services to improve their work environment. For instance, businesses that do not produce physical goods rely on service providers for production, marketing, and safety. Even larger corporations use services to meet their work demands. Whether you are responsible for the company’s work environment or business processes, understanding the different types of business services can help you improve your operations. Listed below are some of the most common types of business services:
They are provided by external agencies
Various types of business services are provided by external agencies. These services include financial management, staff support, and various administrative functions. The contracts establish the scope of these services and can be amended or cancelled as needed. The contract is a legal agreement between the University and the External Agency. A campus must approve any deviations from the route sheet. It must provide adequate space for the External Agency to operate on campus. It should have the proper approvals from university authorities.
They are non-transferable
Businesses often offer non-transferable services. While products can be purchased and sold, business services cannot. A lady who hires a beautician does not have the right to buy ownership of the service and must pay again. This means that consumer participation is crucial when it comes to providing services. Here are some examples of non-transferable services:
Insurance, for instance, is an example of a business service that cannot be stored for future sale. Instead, people must use these services when they request them. Financial services, on the other hand, provide essential auxiliary services to a business. They act as a safety net for the company in case of a business crisis. This way, insurance companies can recover losses that would otherwise have incurred to the business.