Business Services in
Europe:
Raising the Game
Norman Rose
Vice-Chairman
High Level Group on Business Services
&
Chairman
European Business Services Round Table
What are Business Services?
 Business Services cover the entire range of
services where one business supports another in
the execution of its activities.
 They include:
 Professional Services (e.g. management consultancy, accountancy and
legal services).
 Business-Related Services:
 Technical Services (e.g. design, engineering and architectural
services).
 Operational Support Services (e.g. office leasing, labour
recruitment, security, facility management and industrial cleaning
activities).
Why do Business Services
matter?
 They represent 12% of EU value added
 Their growth has outpaced the rest of the economy

Between 1999-2009, the average growth rate for Business Services was 2.38%,
while the average for the EU economy was 1.1%.

Between 1999-2009, the average growth rate of employment of Business Services
was 3.54%, while the figure for the EU economy was only 0.77%.
 They have a dual impact on economic success

They provide crucial inputs that support the activities of other firms.

They have the potential to increase both their own and their clients’ productivity
and innovation.
How well have Business Services
been performing?
Business Services Turnover by Country (€ billion,
2010)
350
300
250
200
150
100
50
0
France
Germany
Italy
Poland
Spain
Sweden
Business Services account for
€2,000 billion turnover (Plaisier et al. 2012)
United
Kingdom
Business Services create jobs
Number of people employed (thousands, 2010)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
France
Germany
Italy
Poland
Spain
Sweden
United
Kingdom
Business Services provide 24 million jobs (Plaisier et al. 2012)
The Vision
The High Level Group 2020 vision
for Business Services
European Business Services that
drive innovation, growth and high quality employment
through technology and skills in order to deliver
solutions for their clients, customers and society:
built on a solid regulatory and standards framework and
an integrated Internal Market
becoming a key driver of economic transformation for a
sustainable European Society
Europe 2020 Strategy
 Business Services do not feature explicitly in the EU
2020 Strategy
 Business Services must form a core element in the 2015
revision to the EU 2020 Strategy
 The Commission must consider how best to support
European Business Services within the global Business
Services market
Complete the Internal Market
for Business Services
There is clear evidence that the Internal Market needs to
be strengthened…
 Points of Single Contact should become comprehensive business
portals
 Administrative and regulatory burdens should be removed
 More importance should be given to removing barriers to the
temporary cross-border provision of services
 European standards should be developed and their use promoted
to encourage best practice
Seize the International
opportunity
The Commission needs to consider how to support and encourage
Business Services within and beyond Europe…
 Only a small share of services provided in the EU have a crossborder dimension
 Only €10 billion of EU exports (0.08% of EU GDP) currently find
their way into global procurement markets
 An estimated €12 billion of further EU exports remain
unrealised due to restrictions
 The quality of support provided in third countries for companies
to undertake trade in business services needs to be improved
Create a technological
infrastructure
Business Services that are not technology intensive will
become technology dependent or enabled …
 We need an initiative of common European interest bringing
together manufacturing and services to create a shared
technological infrastructure enabled by the Internet of Things / web
4.0 bringing about a 4th industrial revolution
 In its pilot phase this should focus on creating a shared virtual
services marketplace for Europe in a few key industries
Innovation and skills
Business Services are more people and skills dependent
than ever, especially due to the technological revolution
 Current developments such as Web 4.0 and Industry 4.0 will
lead to a significant increase in the development and delivery
of technology driven and dependent services
 An overall European Skills Strategy is required, which
includes an e-Skills strategy and which promotes lifelong
skills and educational developments particularly in ICT and
analytics
Improve statistics and data
 NACE codes need to be revised and deepened in respect of
business services
 Eurostat and Member States should increase the level of
statistical data on business services
Image of business services
 Only business can develop a new, realistic profile of industries within
the business services sector
 Employment in business services companies can provide a valuable
career path
 In many areas companies are delivering high tech, high value
service
Fragmentation
 Currently, the various industries within the business services sector
are fragmented vertically
 There is a need for greater coordination at company and industry
federation level – c.f.
 European Business Services Round Table
 European Centre for Facility Management
Follow-up and implementation
 The Commission should establish a partnership with
stakeholders including industrialists, SMEs, trades
unions, academics and Member States
 This should support  the implementation of the recommendations of the High
Level Group
 the development of a Business Services ‘scorecard’ to
assess the health, success and contribution to the EU 28
economy of the sector
Thank You