Business services are distinct from economic services, yet they share common characteristics. Both economic and business services have a concern for building service systems and delivering value to customers. A business, in the end, acts both as a service provider and a service consumer. Let’s look at some of the characteristics of business services, and how they are used in business today.
Intangible nature of business services
The intangible nature of business services creates unique marketing challenges for businesses. Because services cannot be physically touched, seen or felt, a customer cannot easily gauge the quality of a product before they purchase it. This intangibility requires ongoing effort on the part of the service provider to improve the quality of the service provided.
The nature of business services makes them unique from other economic services. These activities are not directly related to the sale of goods, but rather focus on satisfying the needs and wants of consumers. Business professionals generally work for an organization to perform a wide range of different services, and they do not always directly interact with the customer.
Growth potential of business services industry
The business services industry is a diverse industry with wide scope and growth potential. According to Zacks Investment Research, the industry is expected to grow at a compound annual growth rate (CAGR) of 1.8% through 2022. No single service provider dominates the industry, which opens the door for new players to enter the market and compete on price and service.
While the demand for business services is continuing to increase, many professionals are facing challenges that could affect their future employment prospects. Rising costs and a shortage of skilled workers are affecting profit margins and hampering company growth. The impact of Brexit is also posing new challenges for businesses.
Impact of digitalization on business services industry
Digitalization is having a profound impact on the business services industry. It is making employees more mobile and connected. It also makes systems more efficient and scalable. Digitalization is also creating opportunities for companies to better serve customers. Businesses that fail to provide an exceptional experience risk losing customers. By simplifying the process of customer service, businesses can better serve customers and increase revenue.
Many companies are now changing their processes to capitalize on digital. Instead of outsourcing a single, fragmented piece of their processes, they are focusing on integrating multiple digital services. They are leveraging AI-related technologies and platforms to streamline their organization-wide processes.
Career opportunities in business services
If you’re looking for a job that offers a steady paycheck, job flexibility, and plenty of room for growth, consider a career in business services. These careers are in high demand and offer a variety of opportunities. Whether you’re looking for a director’s role or want to help companies improve their websites, there are many different ways to advance your career in business services.
Careers in business services generally require a college education, although some positions don’t require one. The industry also requires strong communication and problem-solving skills.