For Immediate Release
Chicago, IL – March 27, 2013 – Today, Zacks Equity Research discusses the U.S. Business Services, including The Interpublic Group of Companies, Inc. (IPG), Omnicom Group Inc. (OMC), Valassis Communications Inc. (VCI), Harte-Hanks Inc. (HHS) and Accenture plc (ACN).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
In today’s world, companies strive to remain focused on functions and activities that are close to their core competence and provide competitive advantages. But the complex marketplaces in which companies perform demand a host of other functions as well. This need opens the door of opportunities for providers of business services.
Business services can be defined as ancillary services provided by companies to other players in the market. It can also be called a tertiary sector. Hence, the main business of one company can be a business service for another. But given its unique nature, Zacks has classified the group as one of 16 sectors (the S&P has only 10 sectors and business services is part of its ‘Industrials’).
The business service sector is highly fragmented, with no single service provider showing market dominance. As per business reports, the top 50 companies of the sector contribute less than 25% of overall revenue of this sector.
This industry covers an array of services that include marketing, consulting, staffing, security, telecommunications, Internet services, logistics and waste handling. In its expanded sense, the US business services sector generates consolidated yearly revenue of about $620 billion, though many companies mentioned below do not strictly fall within the generally accepted definition of the industry.
Industries in the Business Service Sector
Advertising & Market Services and Direct Marketing plays a vital role in informing consumers about new products, eventually helping the producers to better penetrate the markets. The Interpublic Group of Companies, Inc. (IPG), Omnicom Group Inc. (OMC), Valassis Communications Inc. (VCI), Harte-Hanks Inc. (HHS) and Vertis are important players in this sector.
Consulting Service providers offer expert advice in a given field for smoother functioning of the companies. Major companies in this arena include Accenture plc (ACN), Bain, Booz Allen AND Deloitte Consulting (an affiliate of Deloitte Touche Tohmatsu).
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