Back office lays down the foundation for good front office operations. Back office generally contains administration and support personnel. These are the individuals that remain in the background while front office teams face the client. It is no secret that most in-house back office teams feel unappreciated as all the accolades are showered on the front office. Hence, it sometimes becomes difficult to find motivated individuals to run your back office operations. Therefore, it makes good business sense to employ back office outsourcing instead of struggling with an incompetent in-house team.
5 Reasons to Outsource Back Office Service
Considering the advantages provided by outsourcing back office service, running an in-house back office is not that efficient. Below are some compelling reasons why you should outsource back office support:
- Tremendous cost reduction due to currency exchange rate – Outsourcing back office operations to a company in a developing country (e.g. India) can help you enjoy a currency exchange rate advantage. For companies in the US and Europe, it is possible to reduce the cost of operation by up to 2 times and sometimes even more in an outsourcing venture to Asia. The money saved can be put to good use e.g. you can utilize the money saved for improving your core operations.
- Access to readymade expertise – An outsourcing company that provides back office support services already has access to an experienced workforce with necessary talent in every position. You get the services of managers that have tried and tested strategies. Also, the workforce you get has the necessary skills and more importantly a natural motivation to excel at the back office work.
- Better software solutions – From data mining to data entry to catalog management, every back office task can be performed better with quality software solutions. While it is very difficult for an in-house operation manager to purchase expensive software that will only be used on non-core competencies, a back office outsourcing company has good reasons to make the purchase. As they have many clients seeking similar work (related with back office), they can spend heavily on a software solution always knowing that they will recoup the cost in the long-term.
- No lack of focus – Running an in-house back office operation requires you to maintain your focus on different back office departments. At all times you have to stay in touch with the head of departments and seek regular feedbacks in the form of timely reports. Also, you have to analyze the reports and provide your input in the form of recommendations. Performing these tasks can impact your focus on core competencies, which may hurt your business in the future.
- Complete scalability – The scale of back office operations may be required to be increased at any point of time. A competent back office outsourcing company can help you increase the scale of operation as per requirement at any time you want. Doing the same thing in-house is a herculean task and puts tremendous amount of pressure on your HR and training department.