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Business services industry overview
As one of the most important parts of our economy, this sector provides support services to businesses, and essential and nonessential services to consumers. Services provided by this sector include marketing and advertising, environmental and facility services, and workforce solutions (i.e., executive search, human resources consulting, payroll services and staffing services).
Business services trends and issues
Digital transformation: an influx of new digital technologies has created disruption across the business services industry as firms evolve their business operations to become more efficient and enhance client relationships. Companies need to assess their digital maturity and determine an integrated digital strategy to not only remain competitive but to deliver the value their clients are accustomed to receiving. A well-designed digital strategy outlines how to move from technology as a cost center to technology as a business enabler and ultimately to maturing a company’s technology to view it as a strategic asset.
Evolving workforce models: a constant challenge for companies in the services industry is the ability to recruit, retain and develop talent. However, your internal talent may not be the only solution to optimize operations, increase profitability, and provide service excellence to your clients. In today’s market, many companies are leveraging a managed services strategy to complement their internal workforce and allow them to focus on key business initiatives.
Strategic growth: growth comes in a variety of forms (organic, mergers and acquisitions, private equity, etc.) and in today’s dynamic market, middle market executives are paying close attention to essential factors that affect their growth goals. To position for expansion and profitability, firms can develop new services to meet changing client needs, enhance infrastructure and financial systems, and leverage key tax credits and considerations.
Data-driven decision-making: gaining a deeper perspective on your data is critical for developing a foundation that effectively guides the direction of your business. Middle market organizations now have access to advanced data tools and concepts which can help achieve a host of targeted business outcomes, including increasing profitability, improving operational efficiency and managing risk.
Environmental, social and governance: in recent years, there has been growing emphasis on the importance and benefits of environmental, social and governance issues fueled by changing demographics and attitudes toward social responsibility in business. It could mean the difference between securing capital and missing out on opportunities, achieving top-line growth or losing customers, enjoying strategic freedom or suffering restrictions on your business. Now more than ever, the focus is on gaining alignment around organizational purpose, values and the goals of society.