Back office outsourcing is a sub-category of BPO – Business process outsourcing that involves hiring experts to handle back office tasks outside the premises of a business. The outsourcing vendor may be within (on-shore) or outside (offshore) of the country where a business or company is located.
It is obvious from the evolution of back office outsourcing that more and more companies are increasingly hiring BPO companies to handle more specialized back office tasks. You will find out sooner, why many companies and businesses are taking advantage of outsourcing strategy to execute back office tasks.
Typical Examples of Outsourced Back Office Tasks
Typical examples of back office functions that companies are increasingly giving out to third party companies include the following;
- Accounting and Finance Tasks
- Human Resource Recruitment
- Support Desks
- Data Processing and Data Encoding
Obviously, these business functions or tasks can only be accomplished with specialized skill sets or technical expertise. And you know, placing the different professionals for these tasks in your payroll would surely dent your business profit because of their high salary proposal, plus increased overhead cost of housing them in your business premises.
Besides, these tasks are repetitive in nature and as a result are time-consuming. This means you will have little time for more important aspects of your business if you decide to handle these tasks in-house. So, for these and many other cogent reasons, many companies are adopting back office outsourcing to get these tasks done more efficiently.
Additionally, outsourcing back office tasks helps businesses to access vital link to experts who can offer them more robust and technical manpower. Consequently, businesses can up or scale its operations instantly without incurring extra capital expenditures.
Urgent Reasons Companies Need to Adopt Back Office Outsourcing
The need to be globally competitive has become more urgent than ever! And, meeting this need is possible when a company is able to cut back operational costs as much as possible.
As mentioned in the post titled “Outsourcing Solution – Why Not Give it a Chance”?, one of the reasons your competitors are beating you to it (in terms of offering lower price on product and attracting more customers) is because they are leveraging outsourcing to heavily cut back operational costs and maximize profits.
Besides, when you outsource back office tasks, you will be able to speed up production or manufacturing processes. The outcome would be faster delivery of your products and/or services to the target market. This way you are able to get a better share of the market before your competitors step in with their own products.
Obviously, back office outsourcing is worth adopting as a viable business strategy and solution.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.