As the name may suggest, the ‘back office’ is where work that supports the ‘front office’ is done. Examples of ‘front office’ services are sales, customer service, or marketing while ‘back office’ services/ outsourcing examples might include accounting, human resources, logistics, and IT services.
If you think of the front office as the ‘face’ of a business, the part that the customers see and interact with, then you could consider the back office as the ‘brain’.
Good back-office support is essential for a company to grow, but many small and medium-sized enterprises can sometimes struggle with this. Due to their limited resources and staff, SMEs will often employ people to be a ‘jack of all trades, swapping between functions as diverse as logistics, accounting, and web design.
Unfortunately, no matter how gifted or hard-working an employee is, a salesperson will never be as good at web design, for example, as a professional web designer, whose job it is to focus on that task every day. On top of that, a salesperson’s core task is to generate vital income for the company, and their focus should primarily be on that. Without sensible management, this can quickly lead to employee burnout.
Many large multinational firms have specialized staff recruited to carry out these tasks, with dedicated in-house departments for HR, accounting, legal, payroll, or IT services such as tech support. Most SMEs simply cannot pay full-time staff to fulfill these roles.
Moreover, as SMEs have always been particularly vulnerable to times of economic uncertainty, it’s vital to upsize or downsize departments swiftly and easily, as the market dictates.
This is why using the expertise of back-office support services has become so necessary for small, medium, and even large businesses seeking growth.
Why Outsource Back-office Processes?
There are many benefits of outsourcing back-office functions. Here are the major ones
- Focus On Core Operations
- Job Carried Out by Professionals With Domain Expertise
- Higher Level of Flexibility
- Access To State-of-The-Art Technology And Infrastructure
- Lowered Costs
- No Hassle of Staff Acquisition And Retention
Different Types of back-office Functions
⇒ Payroll Outsourcing: Outsourcing payroll and accounting services help businesses of all sizes free up valuable time and resources. It was a myth that only established companies with a larger workforce can reap benefits by outsourcing their payroll activities. Over the years, even smaller organizations and start-ups have realized the importance of outsourcing payroll and accounting activities. Organizations, through outsourcing, not only saved costs but have also been able to increase their income.
⇒ Data Entry: Data entry is quite a tedious yet one of the most important processes for any enterprise. It’s not wise to manage data entry in the house, though. By outsourcing the data entry process to an efficient and reliable outsourcing partner with a good team of professionals and a robust infrastructure with proper security measures in place, organizations can use their workforce for core business activities which directly have an impact on their day-to-day operations and finance.
⇒ Data extraction: Handling a big amount of data is no cake walk. Data helps you make vital, rational, and strategic business decisions and hence required to be managed by a professional and dedicated team.
⇒ Data enrichment: The real trouble starts when data is derived from multiple sources as multiple and wrong entries can turn the table upside down.
⇒ Data enrichment: ensures accuracy and consistency so that you can count on the data and make the right business decisions.
⇒ Document Imaging: Conversion of data from various sources such as forms, receipts, images, and paper documents into electronic format is referred to as document imaging. It allows businesses to store a large amount of data in digital format.
⇒ Translingual Data Entry: Translingual data entry is crucial and requires the expertise of multi-lingual data entry experts who can do data mining & migration and online as well as offline data entry jobs.
⇒ Directory Services: Directory services are required to store and organize vital directory information to render seamless access to all stakeholders. The information may include target industries, contact details of the decision-making team, and other vital data such as email address, contact number, designation in the organization, etc.
⇒ Invoice Forms: Another tedious data entry process that includes keeping track of due, partial, and paid invoices along with digitizing through the conversion of paper invoices into electronic format.
⇒ Human Resource Outsourcing: Human resource outsourcing helps organizations achieve the highest level of employee satisfaction and streamlined business processes.
There are many advantages of outsourcing HR functions.
years, it has helped organizations not only free up their precious time but also to develop a better HR strategy inclusive of screening and hiring, auditing, compensation, leave management, retention, performance management, and building better procedures and workflows. It helped enterprises save on cost, time, and effort while enjoying better inter-departmental synchronization and higher ROI.
⇒ IT Support Outsourcing: Post sales support or technical support is indispensable to any organization as it directly impacts customer satisfaction and hence customer retention. Customers would call in to discuss their product’s warranty-related issues or technical support for troubleshooting minor or major issues.
It’s therefore of utmost importance for it to be dealt with by a team of professionals with sound technical expertise and customer service experience. Outsourcing IT support not only ensures customer satisfaction but also unburdens your in-house staff from managing multiple responsibilities. It results in higher employee morale, higher customer satisfaction, and increased ROI.
⇒ Bookkeeping & Taxation:
For any organization Bookkeeping and taxation is crucial and mundane in equal measures. As important as it is, it consumes an ample amount of precious time of your in-house staff and also requires the highest level of proficiency and accuracy with 100% compliance to regulatory norms. Organizations over the years have realized the importance of outsourcing bookkeeping to professional vendors with state-of-the-art software and a workforce of accountants with plenty of experience in the domain. While managing this function in-house will cost you a hefty amount of money for software like Quickbooks, MYOB, Peachtree, Quicken, and Sage accounting among others, it’s time-consuming too.