Outsourcing Back Office Services: How Does It Work?

While your team has a full plate of core functions, these administrative tasks can stretch your employees and wear them out. This could then lead to low-quality output, more mistakes, and unnecessary expenses. To help with this scenario, companies outsource their back office jobs to a trustworthy provider.

For starters, how can you outsource back office services? What roles can you delegate, and why should you do it?

What is back office outsourcing?

Back office refers to the portion of the company that performs administrative and non-customer-facing roles. They are separated from the portion of the company where employees must directly interact with clients – also known as the “client-facing” employees.

Back office support services come in when a company needs to provide support to the front office.

What back office roles can you outsource?

Many companies still retain some back office functions in-house. However, outsourcing several roles helps them save more money, streamline processes, and gain access to global talent.

Finance and Accounting

Outsourcing finance and accounting jobs is very common for mid to large-sized businesses.

With outsourced accounting, you won’t have to worry about mishandling your finances and getting late on compliances again. Finance and accounting firms can help you:

• Monitor and track your accounts,
• File your taxes correctly and on time,
• Manage your workforce demand through budgeting
• Implement your accounting processes, and
• Disburse salary payments

IT Services

Aside from accounting, IT services have also increased its demand over time. Outsourcing IT services can help you manage your internal IT network and update your systems, so it works smoothly and securely.

IT services cover a wide range of functions, such as:

• Network management,
• Security implementation and updating,
• Data storage, backup, and recovery,
• Process implementation, and
• Systems support services

Recruitment 

Whether you’re looking for freelancers, remote employees, or in-house staffing, professional employment organizations (PEOs) and recruitment processing outsourcing (RPO) firms can help you with that. 

These recruitment firms can help you screen and hire suitable employees for your roles. Like in different outsourced roles, they will team up with you in managing your recruitment and help you with:

• Managing online job postings,
• Processing of applicant resumes,
• Screening pre-qualified employees, and 
• Filtering the best candidates according to company qualifications

Human resource management

When you outsource human resources management, meanwhile, you get to manage your employees and their data better. 

Unlike recruitment firms, human resource firms cover a broader range of employee management. They get to manage employee data, analyze and process reports on employee turnover, oversee attendance, and implement company policies.

Many firms also conduct trainings for your employees so they can enrich their skills better.

Regulatory compliance

Regulatory compliance firms, meanwhile, help you with any additional compliances for your operations. Though relatively new, outsourcing compliance has become sophisticated for their increasing clients. 

Almost one-fourth (24%) of businesses keep their compliance in-house. Meanwhile, those who outsource, make sure that their firms follow rules and regulations both in their home countries and in the West.

Outsourcing compliance tasks can help you save money and minimize errors in submitting and updating your documentary requirements. They can also guide you in implementing company regulations according to your standards.

Advantages of outsourcing back-office services

 

Outsourcing the back office jobs mentioned above can help you save time and resources. These services may vary depending on the size and industry of your organization.

Here are some of the benefits outsourcing back-office services can give you:

Access to back-office support expertise

Back office support services allow skilled people to provide quality services with the use of advanced technological resources. Through outsourcing, third-party providers can hire qualified people for specific roles, capable of providing extensive training and seminars.

Outsourcing to BPO companies, for example, would hire highly skilled admin experts who can handle these services. These experts undergo a meticulous screening process to ensure that your team will receive quality output.

Time and Cost-Efficiency

Outsourcing back office operations, among other services, can help a company save up to 60% on employment costs. This is because the outsourcing provider has the capacity to provide everything – the manpower, facilities, tools, and equipment – at a fraction of the price.

Reinvest in your business

Outsourcing’s biggest advantage would be cutting back on cost – but it’s not just about savings. Savings open a lot of doors. Meaning, it could lead to new reinvestment.

If you want to scale your business, outsourcing can give you the avenue you need to put your business goals into reality. Since BPO providers are the ones handling the employee training, you could use your cost savings to recruiting the right talent for your core teams. 

Concentrate on your core competencies

Back office support will give you the liberty of utilizing your time and effort in maintaining the core competencies of your business. 

By assigning crucial but secondary tasks to the experts, you and your team will have more time to concentrate on heavier aspects of your company instead of spending so much time on admin tasks. 

Support your business through back office support

These are just a few of the services and the advantages that you can acquire if you outsource these services.

Outsourcing back-office support services will allow you to focus on your business goals and compete in a tough market while cutting back on costs. These cost savings can be used for improving your overall business functions to better serve your customers. 

A smooth workflow is key to ensuring that each department is sustaining what the company needs to thrive. This is why you should only partner with a tried and tested BPO company like SixEleven.

SixEleven has helped dozens of companies with their back office services. Contact us today to learn more about our services!