Business services refer to the tasks and activities that support a business but do not deliver a tangible product. Examples of business services include information technology which supports multiple other business services such as procurement, finance and shipping.
Business service providers provide a variety of services to businesses across the world. They range from advertising and marketing to consultation, facilities management, waste handling, staffing and shipping.
These companies rely on highly skilled employees, who may require advanced degrees and specialized trainings to provide a quality product. They also have to be flexible and adaptable to changing business needs.
The business services industry is a critical part of the global economy and TPG sees significant opportunities to deploy our operational capabilities and growth strategies to help service providers grow and operate efficiently, across industries.
Service differentiation is one of the key barriers to entry in a service business. The type and quality of a service determines the level of competition in that market.
Intangibility and inconsistency are other characteristics of business services that differentiate them from physical products. Intangibility means that a person cannot touch the service, while inconsistency means that there is no consistency in how the service is delivered. Inseparability is another characteristic of business services as production and consumption take place at the same time in contrast to goods which are stored for future use.
The EU has introduced a number of policy initiatives to promote the growth of the business services sector, with the aim of removing legal and administrative barriers. This will increase the competitiveness of business services and encourage them to establish in other European countries.