As a business owner, you should concentrate on developing or extending your enterprise. You should concentrate on attracting new clients. However, if you still have to handle back office tasks like payroll, hiring, or IT infrastructure as you concentrate on business growth, it may get burdensome. It could be time to think about outsourcing if those tasks are preventing you from completing what you need to be doing. Back office support tasks can take a lot of time and distract you from your business objectives. You may concentrate on company expansion and the customer-facing components of your operation by outsourcing. In addition, it can enhance productivity and provide additional advantages like increased profitability. Additionally, outsourcing might benefit your company’s profitability and resource efficiency.
You cannot, however, just hand up control of your company to anyone. According to statistics, Fortune 500 firms lose an estimated $480 million per year as a result of ineffective back office procedures. Your back office should be outsourced to a qualified company with plenty of expertise.
What is the outsourcing of the back office?
Back office activities are those that are not specifically related to contacts with clients and often include the administrative and support staff. The back office is the “backbone” of the business if sales and marketing are the “face” of operations.
The back office is set up to improve client satisfaction and go above and beyond. Improved client retention, improved brand awareness, and more revenue are the goals of back office operations. Back office outsourcing company is crucial since it can ensure the efficient operation of your business.
However, you can spend a lot of time on back office duties. Although you might be tempted to handle a lot of the work yourself, doing so can take away from your ability to focus on other business-related activities. You may reclaim some of that time and release some of your resources through back office outsourcing. Additionally, it is less expensive than building an internal team from scratch.
Benefits of Back Office Outsourcing
Perhaps you’re still debating whether or not to outsource your back office. Do you still need persuasion? For inspiration, consider the advantages of back office outsourcing.
- Cost reduction
It makes perfect sense to outsource back office services if you have a tight budget. The actual cost of an internal staff will be far greater than the base wage you were promised. You will also be responsible for their taxes, office rent, equipment costs, and perks.
However, outsourcing can save you a tonne of money. Professionals with expertise and talent might be hired for less money than their full-time equivalents. The facilities, tools, and recruiting procedure will all be supplied by the outsourcing firm. You may save up to 70% on staffing costs by outsourcing to nations with low living expenses, like the Philippines.
Do you require contract workers or part-time workers? The outsourcing company can meet your needs as they arise. You may delegate labour with more freedom if you outsource your assignment. When your responsibilities are very heavy or light, they can adjust. An outsourcing provider can expand with your firm no matter what your team’s needs are.
When you outsource back office services, you’ll have greater freedom in deciding what tasks to provide your staff. You may utilize as few or as many resources as you require by working with an agency. You may scale with an agency rather than employing additional employees or building a team from scratch.
- A Number of talented people
With outsourcing, you have access to a talented workforce. The majority of outsourcing companies employ skilled individuals for certain positions and then subject their brand-new workers to intensive internal training and seminars.
Outsourcing companies guarantee that the individual you choose will unquestionably meet the demands of your company. You can rely on the task being done accurately and by a professional if you engage an accountant to conduct some number crunching for you.
- Prioritise your core competencies
Your business may concentrate on its core skills via outsourcing. Your outsourcing partner’s attention will be on the required back office assistance. You may devote all of your time and energy to business development or growth. Your staff may concentrate on its primary duties.
Your staff may now concentrate on more crucial activities because they are no longer weighed down by back office duties. You may now focus on maintaining customer connections or making plans for the future of your company.
Back Office Tasks That Can Be Outsourced
You may be asking what tasks you can delegate to your outsourcing partner now that you have a better understanding of the advantages of outsourcing. You must choose which duties to outsource because not all functions can be done. The following are some of the most often outsourced functions:
1. Customer Support
One of the most important and frequently outsourced roles is customer service. It takes time to talk to angry consumers, listen to their problems, and allay their fears. You should be looking for prospects for growth, selecting strategic partners, or negotiating agreements.
To maintain client retention and happiness, excellent customer assistance is essential. This might include phone, chat, and email help. Five times as much goes into acquiring new consumers as keeping the ones you already have. By contracting out customer service, you have access to a group of experts who can assist with your incoming requests.
A skilled crew is ideally suited to manage the sensitive duty of providing customer assistance. If not, your company can experience a downward spiral. People like posting negative customer experiences on social media. It may be seen by hundreds or even thousands of clients and potential clients, harming your business’s reputation.
2. IT assistance
Because of how quickly the field of information technology is evolving, it’s possible that you and your team won’t be able to stay current. You may deal with experts who are knowledgeable about the most recent developments in information technology by outsourcing your IT assistance.
Your internal staff can lack expertise in technical help desk operations, network administration, hardware support, and software development. Implementing cybersecurity tactics is a crucial task that outsourcing IT assistance may assist with. According to the most recent statistics, the cost of the data breach is projected to be $3.92 million. You wouldn’t want to lose that much money, for sure. The protection of your company’s information will be aided by your outsourcing partner. You may have access to the most recent technologies by outsourcing IT.
Perhaps you lack the resources to hire a full-time IT manager. Because the provider can engage a specialist to work on a contingency or contractual basis, outsourcing can assist in covering that. They are compensated for continuously maintaining and watching over your systems.
Your internal team may find it challenging to hire new staff to fill open positions in your business. Companies cited recruiting efficiency (35%), time to hire (49%), and skill availability (60%) as their top three recruitment difficulties in a KellyOCG study. Outsourcing the hiring process can help in this situation.
Even at the management level, your outsourcing partner will offer the necessary assistance with your continuing employment needs. You can focus simply on a few vacancies or outsource specific aspects of the hiring process. You can contract out the hiring process on a project-by-project basis and work with the supplier for a little time.
The outsourcing provider will provide you access to experienced personnel who are skilled in efficient recruiting techniques and make use of the most up-to-date resources to identify the ideal applicant to meet your demands.
4. Bookkeeping and Payroll
Let’s be honest. The majority of business owners detest doing the maths. Updating your books might take a lot of time. Payroll calculations performed by your internal staff may be inaccurate owing to lack of experience. Working on payroll and bookkeeping requires focus and concentration since errors are easy to make.
Payroll and bookkeeping tasks can be outsourced to maintain your company in compliance. Businesses must submit their books to the government, and if your figures are inaccurate, you risk breaking the law and facing harsh fines.
Payroll professionals and outsourced bookkeepers are informed about tax laws and payroll calculations. The outsourced crew is qualified and an authority in their profession. Therefore, leave business-related computations to the experts and concentrate on the processes that might support business development instead.
5. Social Media Administration
Nowadays, to have an online presence, you must be on social media. Facebook, LinkedIn, Twitter, and other social media platforms are used by your potential clients. Perhaps you would like to maintain your own social media accounts. But when it comes to social media, DIY isn’t always the greatest choice.
It takes more than just updating your Facebook newsfeed to manage social media. You can’t handle it on your own because it’s a tricky and unpredictable platform. By email chat outsourcing, you may work with experts who are familiar with the platform, oriented towards technology, and up to speed on the latest trends.
Outsourcing back office support is a continuous process. It requires ongoing oversight and performance tracking. Maintain open lines of communication and create a productive workplace with the outsourcing company you’ve picked. You can ensure maximum efficiency, productivity, value for your money, and, ultimately, your pleasure by cooperating and communicating effectively with your outsourcing provider.