Business services are industries that support the operations, infrastructure and productivity of businesses. They include banking, transportation, warehousing, insurance and communication services. Businesses require a wide range of these services to function efficiently and effectively. Business services are distinct from product-based industries in that they do not involve the production of physical products and, instead, focus on offering a service to customers.
A company that provides business services may offer a range of services, from providing training to helping companies build a strategy. These types of businesses are typically less regulated than product-based companies, and they can offer a flexible working environment with high profit margins and recurring revenue streams.
Many business services are offered on an outsourced basis to reduce costs and increase efficiency. Outsourcing allows a company to scale up or down as necessary and take advantage of the expertise available in another location. Some of the more common business services offered by outsourced companies are payroll, IT support and customer support.
In 2012-13, New York State established the Business Services Center (BSC) to increase efficiencies and lower costs by streamlining transactional human resource and finance services that are common across agencies. The BSC focuses on eliminating duplication and redundancies, reducing costs, and allowing agencies to focus on core mission activities.