According to a recent Shared Service and Outsourcing Network (SSON) report, Fortune 500 companies lose an estimated $480 billion due to ineffective back-office processes. If you are wondering why these losses are occurring, well, there are many reasons to blame, such as:
- Leadership challenges
- Issues managing the mounting workload
- Pressure to reach KPIs and timelines
Let’s face it. Establishing back office functions is not cheap and can take quite a bit of time. This is why so many companies decide to outsource their back office functions so they can overcome the inefficiencies and reap the benefits of outsourcing. Let’s take a closer look at these benefits in the next section.
What are the Advantages of Back Office Outsourcing?
Businesses that outsource back-office operations can save significant time and resources. Even though back office needs will vary from company to company, there are still some benefits that are available that pretty much any company can get:
- Saving Time and Resources – As we mentioned earlier, back office functions can get quite costly because of all the overhead expenses. This includes renting an office, procuring equipment, training, and other costs. If you decide to outsource, all these costs will be the service provider’s responsibility.
- Access to Large Talent Pool – By taping into the outsource destination’s talent pool, you are gaining access to some of the location’s best talents. In addition, the hiring criteria are determined by the client, so you can set the parameters to hire the exact type of candidates you want.
- Gain Better Focus – In most companies, managers need to wear many hats, meaning they perform many different functions. By outsourcing your back office tasks, the management can focus on their core business functions.
- Scalability. When outsourcing back office operations, the outsourcing vendor will handle the hiring and training processes.
BPO (Business Process Outsourcing) is a popular model for companies to outsource their non-core business functions to specialized service provider as discussed in this article about the BPO model.
What are the Most Outsourced Back-Office Functions?
With the appealing benefits of outsourced office services, there are several back office functions that are great for actualizing these benefits. Below you will find some of the most often outsourced back office roles in a company:
In this role, the agent would receive data in one type of medium, and they would need to enter it into the computer system. This could be something as simple as copy-pasting data from the source to the target system. However, there are more complex types of data entry work that require research, classification, and interpretation. By outsourcing such work, you are able to enhance your efficiency and productivity since you can focus on managing your business.
Calculation errors are usually caused by a lack of expertise in payroll practice. Also, when your employees are not concentrated, they can make careless mistakes. When you outsource payroll tasks, the responsible staff member will be able to focus on specific tasks required by the client. In addition to this, the agents are well trained by the outsourcing provider to better hone their skills and obtain valuable experience.
Outsourcing human resources services help companies improve their recruitment processes, strengthen their workforce and improve employee satisfaction. In addition, outsourcing can give you a fresh perspective that will allow you to improve your internal systems and workflows.
This is undoubtedly one of the most critical functions in a company, but it’s also a very broad area to outsource. The reason it’s so important is that support agents deal directly with customers and must be able to resolve their issues professionally. By outsourcing your IT support services, your agents will have access to the latest tools and provide the needed assistance to your customers, which can be challenging for a small business to run.
A startup, small business, or a Fortune 500 company all know about the value quality marketing can bring to their brand. However, they also understand how time-consuming this is. When you outsource your marketing activities, your team members will execute your marketing plans. This gives you peace of mind knowing that you have the resources available to implement your marketing strategies, and everything is handled by experts.
Outsourcing back office operations are critical since it allows you to take the workload off your in-house teams and focus on more critical aspects of your business. However, you should not only think about the benefits of outsourcing but also know how to choose the back office solutions that work for you.
What are the Keys to Choosing Back-Office Solutions That Work?
You should first have a clear and practical discussion with your outsourcing partner about what you want to accomplish. Many back office service providers will give you their proposals, and the tips we will provide below will help you decide which one you should choose and the solutions that work for you. Do your research and seek out an outsourcing partner who shares the same values and aligns well with your company culture and expectations.
It is also vital to look for back office service providers that meet your needs and exceed your expectations. Remember, the cost savings they offer should not be their only feature but also the quality of their work. Try to find a service provider that specializes in a particular area and has an excellent client track record.
- Calculate the costs – How much will you be able to save by outsourcing as opposed to setting up a team yourself. An experienced outsourcing partner will be able to break down these costs to give you the best price.
- Think ahead. Prepare for expansion and check if your service provider can keep pace. Flexibility and agility are the keys to scaling up a business. Outline your needs and the types of outsourcing office services you might want to extend as you expand your business.
In general, the outsourcing provider you choose needs to understand your goals, how to achieve them, and how to revisit them regularly. You need to check if they are meeting your project milestones or if there are areas that need improvement.
Trust All Your BPO Needs to Pexly
If you are looking for back office outsourcing services to help save your valuable business resources, Pexly can help you get the most value for the money you spend. At Pexly, we do not just focus on making things more cost-effective. We also value high-quality work, partnership, and success.
Contact us today to learn more about how we can help you!