The business services examined in this study include software and information services, R&D and
technical services, advertising and marketing, business consulting, recruitment and human resource
development services. Digital delivery includes contracted out electronically mediated services supply
(outsourcing) and digitally facilitated distributed work within firms, in which business services inputs are
supplied electronically to support the business activities of firms. Digital delivery allows business services
suppliers to combine richness and reach (i.e. to combine greater market reach with the ability to engage in
richer interactions with clients).
Business services activities are a significant and growing part of all OECD economies. Services are
often dominated by small firms, although there are large players in most market segments. Demand for
business services is strongly pro-cyclical. Innovation and high levels of competition counter market
dynamics leading to concentration. Hence, new players emerge and there is considerable churn among
market leaders.
