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Outsourcing Back Office Functions and Why It Works

by: Mary Christine Galang

Wednesday, October 4, 2017 |

The term "back office" originated from the traditional business layout where the "front office" handles revenue-generating operations such as sales, whereas the back offices assume administrative roles that ensure the overall business operates smoothly.

Typical back office functions include human resources and recruitment, accounting and finance, and information technology (IT). But with the advent of globalization and e-commerce, back office operations expand to include more technology-driven administrative tasks, like content moderation.

Growing demands in back office operations

This inevitably makes back office operations more comprehensive and more demanding, even rigorous. Inadvertently, these also cause an impact on customer experience, whether positively (efficient and accurate results) or negatively (miscommunication, delays, and disruptions).

As these essential administrative functions continue to grow, it is necessary to ensure that all these tasks are attended to properly and handled effectively. For many businesses, especially for small- and mid-sized ones, this would mean a hefty increase in operations costs. For large companies, this would mean reallocating larger resources to back office functions and more oversight.

Outsourcing your back office

There are many reasons why companies outsource. When it comes to back office processes, there is no "one size fits all" solution. Knowing when to outsource is just a part of your decision, knowing which processes allows you to maximize it fully.

Conduct an overall assessment to identify which functions you need to outsource, especially if you don't have the qualified experience and/or resources – human and financial – to do it in-house/yourself.

Outsourcing companies also have specialists, consultants, and contractors on staff to ensure high-quality output, and whom you can seek advice or help from whenever you need it.

Also, outsourcing offers you flexibility and control. You have the power to decide whether this is going to be a short- or long-term commitment. Do you only need the extra help to finish tasks on time, or do you need a continuous assistance with the proper oversight from an expert?

Ultimately, outsourcing can be an effective strategy not only to save on costs and minimize risks but also be beneficial to your bottom line and when it comes to generating long term-benefits.

Talk to our experts today and find out how you can improve your back office functions and other integral business processes.

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