Back office services are the backbone of every business. Think of it as the motor that keeps the company and its employees functioning—an unsung hero silently working behind the scenes, keeping the organization afloat, and running smoothly. Without back office support, a business would have unpaid workers (assuming it can even screen and hire applicants in the first place), mismanaged reports, and financials that do not add up. Not to mention all the angry customers who are not able to access their information, manage their accounts, and have their platforms working properly.
Back office support is an essential part of business operations that is sometimes overlooked. But what—or who—exactly is the back office? Back office services comprise the non-client-facing aspect of the business (as opposed to sales, marketing, and public relations). Let us break it down a bit further and take a look at some of its functions:
Having solid, accurate, and efficient back office support operations is crucial; it is no secret that it takes a lot of capital and manpower to run and maintain. And this expense is why many companies choose to outsource their back office services through a BPO service provider. In fact, doing so can help organizations save up to 30% in operations costs. There are numerous benefits partnering with back office outsourcing companies can offer but let’s first define what back office outsourcing is.
Back office outsourcing is having a business process outsourcing company handle the non-client-facing or back-end operations of a business. For example, if a small business owner’s data entry system was outsourced to an offshore BPO, the owner no longer have to worry about the grueling work of encoding, managing, and manually double-checking thousands to millions of data entries.Instead, the owner could instead focus on other core tasks like strategy and communications.
Any enterprise can benefit from a third party’s back office services, whether a startup or multinational. Here are three reasons why business owners need to consider it as an opportunity for growth:
While having an entirely fully in-house back office is always an option, one must consider how expensive it can be; this is a major pain point of keeping back office support in-house. Hiring employees, paying for salary and worker benefits, purchasing equipment, renting office space, and maintaining them all add up, particularly if you're either starting the business from scratch or expanding to an entirely new location, country, or region. By partnering with back office outsourcing companies, you are leveraging economies of scale. Doing so can save you a significant amount of money, especially in the long term. You can then use the extra funds to further invest in your business and improve your bottom line. A back office BPO can truly help you with that, and then some.
Improvement in efficiency and productivity
Administrative tasks like encoding, for example, can be repetitive and draining. Although necessary, such activities aren’t exactly enriching and can wear your employees down. Given this, why spend so much time and effort on something that a back office BPO can properly handle? By delegating these mundane tasks to a back office call center, you and your workforce can prioritize more complex and fruitful initiatives, such as planning your go-to-market, organizing events, and enhancing your customer experience.
Back office outsourcing companies have mastered the ins and outs of back office solutions. They have specialists for each field and have dedicated tools you don’t have to spend on. By working with a back office BPO, you will be able to tap their technology and expertise—which could cost you a long time to develop if done in-house. Back office outsourcing companies could also advise you on technical requirements such as legal compliance and government regulations.
Handling the back office on your own can definitely be challenging. Outsourcing is a great solution, but you will need to find the right partner. To get consistency, you must choose a third-party provider that is not just experienced in back office services but equipped with the right technology and highly-specialized people.