Business services are an important part of the European economy, contributing to over 11% of GDP. They play a crucial role in the development of new combinations of goods and services, and are increasingly used to enhance the value of products.
Generally, services fall somewhere between production and consumption of physical goods. The main difference between the two is that a service cannot be stored for later use.
Business services are a set of activities that assist a company but do not deliver a tangible commodity. Examples include information technology (IT), which helps businesses align IT assets with their needs, and shipping, procurement and finance, which help businesses make the most of their resources.
The five most common types of business services are computing, telecommunications, management, software and professional services. Some of these categories are more specialized than others, while some are broader in scope and serve all kinds of businesses.
The most common characteristic of business services is that they are intangible, meaning that they do not have a physical presence. Examples of intangible products are teaching by teachers, doctor’s treatment to patients or the experience of a holiday.