Back office support

The Urgent Need to Outsource Back Office Services for Small and Medium Businesses

Back office services include some of the most important tasks that shape the fortunes of a business operation. The performance of back office support services require great concentration, so as to maintain accuracy as any mistake can turn into a grave problem. Especially in data-related tasks, the workforce needs to be on their toes at all times.

Back Office Services: SMB vs. Big Businesses

Back office tasks are important for both big and small businesses. But due to the competence and resources available, the relevance of back office outsourcing varies considerably for the two. Below is a comparison:

  1. Big businesses generally like to keep their in-house management with them, which is why; they do not outsource for HR and compliance. They are most likely to outsource for data-related tasks like data entry and data mining. Manufacturers and resellers of tangible commodities may use catalog management or order processing services. On the other hand, SMB (small and medium scale businesses) would not mind outsourcing their HR and compliance.
  2. Oftentimes, large-scale businesses do not outsource their whole process. They like to maintain some level of control on every process. Hence, they outsource only that work, which is overburdening them. In contrast, an SMB company may offload all its work because of lacking skills, expertise or resources for performing a particular back office task.

Why SMBs Should Be Extra Careful about Back Office Outsourcing?

As SMBs are more likely to outsource their whole back office support, they are less likely to have control over their processes. Therefore, they need to be extra careful in choosing their vendors. Below are some factors SMB companies should take into consideration before outsourcing their process:

  1. Define SLAs scrupulously – Service Level Agreement (SLA) is like a fail-safe policy that prevents a company from loss, in case the service is not delivered as per expectations. By defining service standards in such a way that every mistake or non-performance is punished by fee cuts or compensations, it is possible to ensure a smooth flow of operation.
  2. Perform web Research on the outsourcing partner – No matter how good a company appears from the outside, it is hard to know for a fact that it can be trusted with your work. Therefore, it is essential for an SMB company to look at the case studies and feedback on the social media websites to ascertain if the back office support outsourcing company is up to the desired level.
  3. Select vendors with access to pertinent softwareOutsource back office services to only those vendors who are not only armed with the right human resources but also with the relevant software solutions for performing the tasks. Operations like data entry, data mining, catalog management, order processing etc. are all dependent on the efficacy of software solutions, which is why; it is essential that you make the software used in the process an important criteria for making the selection.
  4. Hire a liaison manager – A liaison manager serves as your eyes and ears when you outsource back office services. It sits in the office premises of the vendor and sees to it that the work is performed as per expectations. In case, you want to convey your feedback to the employees allocated for the work, the liaison manager can be of great help.

Summary

Back office services are important for both small and big businesses. However, their importance for small businesses is relatively high as these companies solely depend on these vendors for getting their work done. To ensure that your business operation gets the desired rewards, it is essential to lay down the SLAs with great care, hire a liaison manager, and give priority to the software used in the process.

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