What Is Business Services?
Business services are activities that help a company but do not create or deliver a tangible product. They include IT, shipping, janitorial and administrative support. These activities help a company focus on its core competencies and save money by outsourcing noncore work to outside companies. They also reduce the risk of internal errors and save the time and expense of training.
The business services sector has a high potential for growth and profitability. Its low barriers to entry make it easy for small companies to compete with established firms. In addition, it is a very flexible industry that can adapt quickly to changing economic conditions. For example, a reduction in consumer spending could result in decreased demand for goods and services; however, increased regulatory compliance would open up new sources of revenue for business service providers.
Companies can outsource business services to avoid the costs of purchasing and maintaining equipment and software, hiring staff, and investing in infrastructure. In addition, they can use a third party to manage business services and minimize the risks of unauthorized activity or data loss. Outsourcing can also be a great way to gain access to expertise that is not available in-house.
In the United States, there are more than 420,000 establishments providing business services. These establishments provide an estimated $950 billion in sales. The industries that make up this sector are consulting, property maintenance, financial and accounting, IT, computer and information management, advertising, and other services. The services provided by this sector are vital to a company’s operations and can be used as a competitive advantage.
Compared to other sectors, the average salary in business services is higher. In addition, it offers a number of perks and benefits that attract job seekers. For example, some companies in this sector offer paid vacations and medical care for their employees. This can increase morale and encourage employees to work more efficiently.
A career in business services can be extremely rewarding, with plenty of opportunities for professional development and promotion. The qualifications needed to start a job in this sector vary by industry. For example, a high school diploma and strong work ethic are sufficient for jobs in shipping, office administration, and janitorial services. For more skilled positions, such as a IT specialist or an accountant, a bachelor’s degree in their respective field is required.
The Bureau of Labor Statistics (BLS) reports that employment in the business services sector is growing at an average rate of 8% between 2020 and 2030. This is faster than average for all occupations, and it offers many jobs with good pay and career prospects. In addition to high wages, business services offer other perks such as health and dental insurance, retirement plans, and paid family leave. For these reasons, a career in business services is an excellent choice for recent graduates.