What Are Business Services?
Business services can be described as a continuum between a commodity and a service. They provide value and convenience to customers, while providing expertise. Some examples of business services include website hosting, online banking, and remote backups and storage. Typically, a business service comes with an associated Service Level Agreement. Monitoring business services involves monitoring the IT infrastructure components related to the service. For example, if the service is unable to meet a SLA, the business is not receiving value from the service.
Business services are a continuum between service and commodity
According to the Goods and Services Continuum, a product is composed of both goods and services. While some products have tangible characteristics, others do not. Despite their differences, most products fall somewhere in between. For example, a furnace requires a range of services, from installation to delivery. While pure commodities and services are the most tangible types of products, a service is a mix of both.
They boost employee satisfaction and motivation
According to a recent survey, high employee satisfaction is important to the bottom line of a company. Studies have shown that companies with satisfied employees have a lower turnover rate. Happy employees are more likely to take pride in their work and feel loyalty to the company’s values, which leads to higher productivity at work and higher-quality work output. Employee satisfaction also helps to reduce the number of employees who leave due to financial reasons.
They are non-transferable
Unlike tangible goods, business services cannot be transferred. Once a client has paid for a service, they cannot exchange it for another. Unless the consumer buys the service again, they cannot “own” it. In this way, the value of a service is unchangeable. If a client purchases beauty services from a company, they cannot transfer their payments to another client. Business services are more valuable to a company than tangible goods.
They can be outsourced
Outsourcing your business services can be beneficial to your company’s growth. It reduces operating costs, since you don’t have to pay employees for fixed hours, equipment, or benefits. Outsourcing can also reduce demands on your own staff, allowing you to focus on core business activities. Business services can also help you finish tasks faster and save on space, because you can outsource these tasks to a third party. Some companies even allow their employees to work remotely.