Back office refers to all activities that a company has to perform for supporting the main activities. Usually, back-office tasks are administrative and non-core processes that help run the company. As opposed to the front office activities, back-office doesn’t deal with the customers directly. However, the back-office tasks are as crucial as the front office tasks. A good back-office management makes the operations smoother, makes the job of the front office easier, can affect cost reduction and increase productivity.
Even though back-office activities are not related directly to customers, the employees still need to interact with the front-office workers. In fact, they usually need to collaborate with every department of the company. This is because the tasks that they need to perform are very diverse. Therefore, it is sometimes very hard to define the tasks of a back-office department because they depend on the business models of the companies.
Back office processes are the easiest to delegate and outsource since they don’t necessarily need to be performed in-house. Moreover, outsourcing these tasks is usually more advantageous for companies since they can benefit from many factors. For example, location and timezones can affect the speed of operations. Since managing these tasks in-house is not a must, companies can locate the teams in more strategic places.
Back Office range of tasks
As mentioned, back office tasks are very diverse and depend on many factors. For example, the tasks can be administrative or non-core functions. To add, some tasks can also be related to customer experience. Eventually, the back office tasks, although not directly related to clients, are always in the function of enhancing customer service and experience.
The administration tasks require a higher level of expertise and knowledge-skill set. For instance, when outsourcing HR, companies need to make sure that the provider has the right experience and can provide valuable resources that are also specialized.
Another popular back-office service is data processing and data entry. These tasks include image processing, data archiving, data mining, data classification, data annotation, cleansing, capturing, etc. To add, these tasks are often considered entry-level but that is not entirely true.
Payroll and Payslip management is another frequently-outsourced service. Moreover, both small and big sized companies outsource this activity. Companies that have a large number of employees benefit from a fast management of the task. Wheres, small companies benefit from reduced costs when handled in-house.
As noted, there is a wide range of activities. Literally any process that is not directly related to customers but is needed for running the company falls in the back-office category.
Back office processes can be outsourced to an external party. In fact, almost all companies, no matter if they’re small businesses or big corporate, need to outsource these functions. As mentioned above, the tasks range not only in nature but also in difficulty and skill-set. Therefore, it is better to have access to a larger pool of talent that is able to work remotely.
Some companies choose to outsource only entry-level tasks, such as data entry, data processing, archiving, document management, etc. Other companies decide to outsource administration functions as well, such as HR, Finance, etc. Thus, when tasks need a higher level of expertise, it is better to not limit recruitment locally. The chances of finding the right people are higher when the candidates’ pool is global.
Since back-office tasks are often related to the “behind the scenes” operations of a company, it is often advisable to outsource to a specialized BPO to handle the activities. This is because sometimes these tasks need to be completed overnight or in record time. Having staff work overnight or overtime would be an additional cost to companies. Thus, to avoid these costs, businesses outsource to offshore companies. The different timezones enable the outsourcing partners to complete the tasks in a timely manner, which wouldn’t have been otherwise possible.
Moreover, technology is another growing reason why companies outsource back office. With the latest development in Artificial Intelligence and RPA, it is possible to handle functions more effectively. However, this technology is still very costly and most startups and SMEs need to allocate their budget towards their core business and front office activities. For this reason, outsourcing enables companies to benefit from the latest technology without spending more.
WeAreFiber is a business process outsourcer based in Europe. With more than 600 employees, we are able to handle back office campaigns ranging in complexity, tasks and expertise level. We are able to combine back office functions with the front office operations of your company to deliver an exceptional service with a holistic approach.
Our experience of more than 8 years in handling back office functions adds value to our business development approach. We don’t aim to be only your trusted outsourcing provider but to also act as an advisor and enabler for your company’s further growth. Moreover, we have recently launched our internal Innovation Lab and RPA department that will add value to any outsourced service and close any gaps in your business needs.
Our specialist would be happy to assists you or answer any questions that you may have regarding outsourcing back office.
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