Back office functions, although not a client-facing part of the company, are vital to keeping operations running smoothly. Human resources, IT, accounting, and risk management are some of the roles played by the back office workforce.
How does back office outsourcing work?
Back office outsourcing happens when businesses recruit talents outside their organization to perform specific tasks for them.
These talents are employed by a BPO company that caters to many different clients at a time. While other businesses focus on the development of their products and services, BPO companies specialize in training workforces with skill sets that can be offered in those industries.
Customer service is one of the most common examples of back office outsourcing. However, today with the thriving economy of business process outsourcing in the Philippines, these services have expanded to human resources, finance and accounting, marketing, and IT.
How is an outsourced back office different from in-house back office?
Outsourcing is a practice by many companies to reduce the cost of hiring in-house employees essential to their operations. Having a BPO company as the middleman between the business and the talent is the main difference between an outsourced and in-house back office.
Simply put, a BPO company delegates workers to a business that needs specific skill sets for its back office operations. With the other organization as a client, all the employer’s responsibility in compensation and training of their employees lies on the back office outsourcing company.
With the help of outsourcing, businesses exempt themselves from the whole process of hiring, training, and regularizing employees for their back office needs. On the other hand, companies will not have direct management over the contractors performing the job, unlike the in-house employees.
What are the advantages of back office outsourcing?
The global and local manpower was forced to hit the restart button when the pandemic took over. Corporations were challenged to rethink and redesign their human resources systems.
Remote work that was once out of choice for talents has now become part of the business landscape. This is also when outsourcing has become the best option for keeping businesses afloat, especially in terms of cost and expansion.
Here are some of the advantages firms need to know when considering back office outsourcing:
Cost efficiency
Although back offices do not necessarily generate income for the company, they are as vital as the front office to keep the firm running.
Outsourcing back office functions cut the cost of maintaining an in-house staff and equipment. This may also include the infrastructure and office space needed for the back office workers. This also allows them to redistribute assets to other aspects of the business.
By leveraging most of the resources an outsource company already has, industries can expect a production-ready team for the back office work they need. This improves the operation’s agility and efficiency.
The cost of operating an enterprise includes not only the financial aspects like compensation and equipment. More importantly, the time and productivity of its employees determine the revenues brought into the company.
Costs aside, back office outsourcing is also highly beneficial for the in-house teams because it allows them to focus on what is essential to the company.
Task-centered talents
The Philippines is known for its impressively large talent pool, making it one of the best locations to recruit offshore talents. However, the wide-ranging choices may challenge companies to find the right people for the job.
By outsourcing the back office unit of the business through a BPO, they already have access and connection to the right team of people. It also ensures that the workforce acquired for the project is trained and experienced in the field the client company is looking for, which enhances their competitiveness.
Support for business expansion
As a business expands, its need for back office support significantly increases too. When this happens, companies need to consider the added cost of hiring manpower to sustain the quality of their products and services.
This kind of expenditure for companies can be tedious and hinder the full potential of business expansion. With back office outsourcing, organizations can confidently expand their clientele because of the assurance BPO companies give in supporting their needs.
Getting external support for back office might just be the holy grail of business expansions. Having a team built specifically for the company’s needs is a big advantage to its owners and decision-makers.
Rather than spending time and energy on the tasks that can be outsourced, the internal workforce may redirect their attention to developments of the systems the company currently revolves around.
Optimize your business through back office outsourcing
Back office outsourcing helps businesses optimize their products and services by taking out the endless cycle of administrative work.
Putting these tasks in the hands of trustworthy BPO agents can ensure firms that they stay on the right track while having ample resources to explore possibilities for growth.
