What is Back Office Outsourcing?

You know that outsourcing refers to the transfer of any business process to an external service provider.  But you are not sure where the words “back office” fit in.  What exactly is back office outsourcing and does your company need it? In short, back office functions refer to those jobs that are required by a company to help it carry out its work successfully and efficiently. However, back office jobs are usually not a part of a company’s core business activities.

For example, a mobile application development company has primary business activities which include designing and developing mobile apps.  Nevertheless, the company cannot successfully function, if it did not have the right people to manage their accounts, take their customer calls or enter their data. These are back office activities which can be easily outsourced.

Advantages of back office outsourcing

Outsourcing to India can give you access to specialized organizations who have expertise in one or more back office functions. Recent research has proven that investing in back office outsourcing is much more rewarding than hiring resources to handle non-core work in-house. Here are five advantages that you can leverage by outsourcing your back office:

  • Gain a better focus on your core services /products
  • Get rid of staffing and staffing related costs
  • Benefit from better service quality as specialized experts will be working for you
  • Get access to better processes and technology
  • Enjoy better flexibility

Commonly outsourced back office functions

The following are some commonly outsourced back office functions. Most of these business functions are non-productive in nature but are also very important for the successful running of an organization. So when you outsource a back office functions, you must choose a service provider who is reliable, has expertise, offers security and has an established track record.

Payroll processing and invoicing make it to the top of the list, as these functions, if outsourced is beneficial to small, medium as well as large organizations. Handling payroll in-house can take up a lot of time and effort as complicated variables like sick leave, holidays and extra time have to be dealt with.  Outsourcing payroll processing enables companies to invest precious time, effort and talent into building up their business. Companies are also recognizing the huge benefits of outsourcing invoicing and factoring, as outsourcing this back office function is helping companies increase their income.

Human resource (HR) outsourcing is another back office function that companies love to outsource, as it is always helpful to have an expert HR company handling your staff.  Another commonly outsourced back office function is IT support.  IT support if done in-house requires skilled IT professionals. Outsourcing on the other hand, gives companies access to a dedicated team of experienced IT experts at a low cost.

Data entry is a commonly outsourced back office function, as the work can get intensive and eat up precious time. By outsourcing a few of your back office functions to India, you can be sure to save on cost, time and effort, while increasing your ROI.

Which back office function would you prefer to outsource and why? Let us know, by leaving a comment in the box below. We love to hear from you!

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2 thoughts on “What is Back Office Outsourcing?

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