Unlocking the Potential of Business Services
Business services are a type of service that is used by businesses to support their operations. These types of services include accounting, financial management, legal services, human resources, and more. Business services are important because they help companies save time and money by allowing them to outsource certain tasks.
The business services industry is a huge sector of the economy and contributes 11% to the EU’s GDP. Despite their importance, they face challenges like low productivity and persisting barriers in the EU internal market. To unlock their potential, business services need to get four things right.
Unlike goods, which can be stored and resold at will, services cannot be stockpiled or traded in bulk. This is one of the most significant differences between service and product businesses, but it also offers unique opportunities for business services to compete.
For example, many companies offer childcare services at their workplaces to help employees balance work and family life. This type of service is not a product, but it provides a tangible benefit to employees and helps companies attract top talent. Similarly, companies that provide delivery services can improve employee efficiency and offer convenience to their customers.
In order to succeed in this highly competitive arena, business service providers need strong leadership. This is especially true when it comes to shared services, which require a delicate balance between the competitive autonomy of individual service models and the collective value of the entire company. Without centralized leadership, revenue-generating line managers often overrule shared services leaders, undermining performance. To overcome this challenge, business services need to focus on developing strong, unified leadership and training programs that ensure the highest levels of quality and consistency.