Business Services in the EC

Business Services have gained importance during the eighties. With output volume rising at almost 15 percent a year in the EC they attained a share of 6 percent in GDP and of 5 percent in employment. By contracting out certain services firms may cut costs, gain flexibility and strengthen core activities. It also promotes the diffusion of new technologies, information and know-how. If Austria joins the EC the competitiveness of domestic business services will depend on specialization, adequate firm size and high standards of employees' qualification.