Business Services Sector Industry Overview
Excerpt from Business Services Sector Report
Companies in the sector provide support services to businesses, such as office administration, hiring and placing of personnel, security services, travel arrangement, cleaning, and waste disposal. Major companies include Allegis Group, Automatic Data Processing, ManpowerGroup, and Waste Management (all based in the US), along with Adecco (Switzerland); Randstad (the Netherlands), Thomas Cook (the UK), and TUI (Germany).
Providers of business support services may face competition from customers or potential customers, as these services in many cases can be undertaken in-house. Most segments of the industry feature low barriers to entry, as little capital investment is required to start businesses such as landscaping, pest control, or staffing firms. The low barrier can result in intense competition among small companies, which not only compete with each other, but also with much larger, established companies with more resources.
Products, Operations & Technology
Major services provided include employment services (about 40% of US sector revenue); services to buildings and dwellings, including landscaping, pest control, and janitorial services (about 15%); and waste management and environmental remediation services (about 10%). Other revenue sources include travel arrangement, investigations and security, and office administrative services.