Business Services Sector

Business Services Sector

Brief Excerpt from Industry Overview Chapter:

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 ADP, Allegis Group, ManpowerGroup, and Waste Management (all based in the US), along with Adecco (Switzerland), Randstad (the Netherlands), and TUI Group (Germany).

COMPETITIVE LANDSCAPE

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 co-employment staffing services (about 20% of US sector revenue) and temporary staffing services (about 20%). Other revenue sources include exterior commercial landscaping services (about 5%), general-purpose and comprehensive commercial cleaning (5%), and general accounting services (5%).