By giving your service to others, you help them, you help yourself, and in terms of a cumulative effect, you help society. From the economic perspective, the concept of service is slightly different, but the results are much the same.
In economic terms, service is defined as “an economic activity (e.g., labor) offered as a product,” and the service sector of the global economy is developing, enlarging, and evolving at a rapid rate. In fact, many economists have noted the reliance on value-based service, and have suggested that the world economy is evolving into a service-driven economy.
This guide highlights various types of service businesses and examines their economic impact. It will also show how business services help those performing the service, those paying for the service, and society as a whole.
Business services defined
Business services are generally referred to as the activities that help businesses without delivering a tangible product. So rather than producing and selling a physical product, they are producing and selling a service. The production and selling of service have been an integral part of societal development. In its most basic form, service was initially equated with labor, but over time it has evolved in conjunction with the needs of society.
In the fight game, they talk about the trainer being the man behind the man, and so it is with business services. Business services companies provide support services to businesses, so in effect, they are the business behind the business.
Size of the business services sector
It is estimated that in 2018, the U.S. business services sector comprised approximately 400,000 establishments with total annual sales of about $917 billion. Also in 2018, the U.S. professional services industry comprised over 1.2 million firms, which amounted to 9.4 million jobs. In the global professional services market, North America accounted for about 37 percent of the share.
Direct foreign investment is a major driving force in the professional services industry and by the end of 2018, direct foreign investment was approximately $749 billion, which accounted for 1.4 million U.S. jobs.
Different types of business services
The business services market is expansive and diversified, and to get a better understanding of it, it is necessary to break it down into categories.
Management services
Many companies require help in managing specific areas of their operation and to address this they will utilize the services of a management services company that specializes in these areas. For example, a company operating in the finance industry may utilize a business service company to help with asset management, taxation, debt management, stock management, valuation, depreciation, and expansion.
IT Services
The main aspect of IT when it comes to business services is software. Software is involved in all electronic devices and just about all communication. When it comes to software, a business services company will be involved in providing upgrades, enhancing specific features, installing data backup, and boosting security.
Training services.
Performing a job properly will nearly always require a specific skill set that can be attained through experience and training. The importance of training cannot be overstated Training allows participants to get better at their chosen profession or to qualify for a profession in a different area. Training is especially important to professions that provide essential services. One example of this is the field of healthcare.
In healthcare, there are training courses in general healthcare, global healthcare, allied healthcare, alternative medicine, medical studies, and nursing studies, to name a few. One of the most popular ones is the CNA training course. The Certified Nursing Assistant course is designed to train students in the skills needed for them to supply basic care to patients. Nurses and nurses assistants are particularly important as frontline workers in the COVID-19 pandemic.
Other areas where business service companies operate include marketing, travel, catering, delivery, distribution, supply chain, construction, waste management, and security.
The business services industry is now a huge part of the global economy and plays an essential role in the functioning of society. In fact, companies, individuals, and nearly all aspects of modern society are dependent on business service companies. Perhaps most importantly, business service companies help human beings to help and care for each other.