What Is a Business Service Provider?

Malcolm Tatum

Business service providers (BSPs) are companies that purchase goods and services from vendors that are then offered for sale to the customers of those companies. At times, the products that are purchased and then offered to other business customers are adapted slightly to fit the needs of those customers, and may even be sold under a private brand associated with the BSP. This approach can often make it possible for the business service provider to offer a wider range of products to the client base while avoiding much of the expense involved in maintaining its own production and storage facilities.

Businesswoman talking on a mobile phone
Businesswoman talking on a mobile phone

The range of products offered by a business service provider will vary. Some choose to focus on specific niche markets within the wider business community. For example, a business service provider may choose to concentrate on offering communication solutions such as long distance, audio and web conferencing solutions, video conferencing, and fax broadcasting. A second business service provider may focus on providing access to software products, computers, servers, and general office equipment. Other providers may choose to cover a wider range of goods and services routinely used by businesses, a move that can often help increase the chances of attracting business customers who prefer a one-stop shopping solution to interacting with a multiplicity of suppliers.

Along with offering goods that are purchased by other companies, a business service provider will often provide a line of virtual goods that are delivered electronically. These include a wide range of services ranging from software downloads, database housing on remote servers, virtual accounting solutions, and even the ability to store electronic documents or make use of Internet based communication tools to manage day to day business tasks. As with other types of goods and services, these online offerings may be sold outright, or leased for monthly fees.

One of the benefits provided by a business service providers is the ability to work through a central provider to meet a number of different business needs. Depending on the nature of the goods and services and the pricing policies employed by the provider, customers may be able to make use of discounts applied to the total amount of products ordered within a certain period of time. This approach can often lead to not only saving time and trouble seeking out the right vendor partners, but also allow the business customer to enjoy discounts for essential goods and services that would be difficult to obtain using any other approach.

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