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Improving Operational Efficiency through Back Office Outsourcing

by: Sarah Joson

Monday, February 27, 2017 |

Back office outsourcing to improve operational efficiency

Of all the developments in the business segment, outsourcing is still one of the popular business tools maximized not only by large corporations but by small and startup businesses as well. Apart from providing business owners and decision-makers cost effective options, outsourcing helps companies improve operational efficiency by helping in-house employees focus on core functions. A good way to do this is through back office outsourcing.

In a nutshell, back office operations are the part of a business that deals with routine internal administrative roles like finance and accounting, data processing, data entry, HR and recruitment, and other tasks that do not require the employee to face clients. It’s also worth noting that with the fast-moving changes in the tech segment, back office operations have expanded to skill-specific processes such as web design, search engine optimization, and database management among others.

Back office work was not even considered part of a company’s revenue-generating function, with some thinking that back office processes play minor roles in the company, and often push back office work aside. It was only recently that stakeholders began to realize that there are areas in back office units that they can improve on and maximize.

For instance, a company is on track in hitting its growth targets, but this rapid growth could amass more work for the internal teams. This often leads to bottlenecks in key departments: the company’s billing and bookkeeping operations, inventory and procurement processes, and even production.

There are also instances wherein the in-house recruitment and HR teams can no longer take on additional work on top of finding additional people to fill internal roles and end up consuming valuable resources.

Another example is when a brick and mortar business wants to improve their webstore to cater to a much wider market. Now is the perfect time to do so because they are gaining traction in their segment. However, they can’t because the in-house dev team is focused on creating new webpages and fixing website errors, and nobody has the right skills to create new content. Small projects like this are then disregarded and put off, causing opportunities to fly out of the window.  

If you ever find yourself in similar situations, it’s probably time to consider back office outsourcing to address challenges like the ones mentioned above properly and swiftly by complementing the regular operations of the company. Doing so also enables your business to be scalable, and provides you with access to a large pool of back office experts.

So where do you start? First, you would need to analyze which part of the business you are going to outsource. Fix anything that needs fixing before you outsource by setting standards and making sure that everything is documented.  

Next, you need to find the right outsourcing company for you, one that is willing to add value to your company and not just earn from you. At MicroSourcing, we will make the right recommendations based on proper analysis of your businesses’ requirements. We offer transparent pricing that tells you upfront where your money will go.

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