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7 Reasons Back-Office Outsourcing is the Ideal Strategy

Musnad E Ahmed

Musnad E Ahmed

Last modified on October 29, 2023

7 Reasons Back-Office Outsourcing is the Ideal Strategy

Working from behind the curtains, back-office support teams have aided businesses enormously. Think of it more as a stabilizer for your business, while you push for growth. No matter your pace, back-office BPO services are there to tackle your administrative, IT, bookkeeping, and other data-related tasks!

Outsourced Back Office Services make an impact that fosters rampant growth and stability for businesses across all industries. What’s then stopping businesses from hiring their own back-office teams? Let’s review the primary reasons businesses should consider employing back-office teams!

Understanding Back Office

Successful research with a team

Think of your business as a steadily advancing ship limping on its voyage. You are the captain, and you can see the ship sailing smoothly, why is that? Under the deck, scores of crew members are giving it their all, powering the ship, guiding its way, and plotting the course for the destination.

People don’t usually think of these “back office” crew members, whose efforts make the business function effectively, supporting it as its backbone. If you get the picture, you can easily understand the role and necessity of back office teams.

What’s in Outsourced BPO

You need crew for your ship, and you have to ascertain their expertise before setting out on your voyage. When you hire outsourced back office services, you can rest assured you’re getting trained hands and experienced minds.

Outsourcing takes the worry of crew training, monitoring, and recruitment, allowing you, the captain, to focus on other necessary tasks. Outsourced back office offers businesses a whole new frontier for growth and expansion.

Front Office vs. Back Office

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If you’re confused about front office and back office operations, the simple explanation lies in the difference between the ship engine crew, who make sure the ships sail smoothly, compared to their onboard stewards and attendants who look after ticketing, attending to the needs of voyagers and those working in the kitchens.

The back office supports operations, while the front office looks into the core business functions – amping revenue, and onboarding clients & customers.

Reasons to Hire Outsourced Back Office Support Teams

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With real data on your side, you can easily weigh your options before signing a deal with a reputable BPO agency. However, the reasons for outsourcing outweigh the data as it has it’s own list of benefits that you can put to your advantage!

1. Cost-Efficiency: Maximizing Value, Minimizing Expense

Consider the tech giants like Apple and Google. Much of their back-end processes are outsourced, enabling them to focus financial resources on core innovations. According to Deloitte’s 2016 Global Outsourcing Survey, 59% of businesses use outsourcing as a method of cutting down costs.

With back office BPO services, you too can achieve operational excellence without the hefty price tag. You will cut back on a long list of costs, and expenses while getting yourself a team of trained experts right away!

2. Access to Global Talent

Remember the multilingual customer support from companies like Amazon? Through outsourcing, you gain access to a global talent pool, ensuring specialized expertise without geographical constraints. LinkedIn reported that 55% of businesses prioritize soft skills as they expand globally.

This will also allow your business to expand globally without much growing pains, while also having specialized teams working with full effect!

3. Scalability: Growing at Your Pace

According to a report by Forrester, businesses that use BPOs have noted a 15% increase in their scalability. Reflect on startups that rapidly scale to become industry leaders, like Airbnb.

Back office BPO services provide the flexibility to scale operations up or down based on market demands, ensuring agility and adaptability. With proficient teams on your roster, you are able to allow room for growth and have the team grow as well, supporting your business with each expansion.

4. Enhanced Focus on Core Business Functions

Nike’s iconic branding is a result of focusing on what they do best: creating products and marketing them in ways that have inertia behind each outreach. Outsourcing back-end processes allows businesses to channel energy and resources into primary functions and brand building.

Meanwhile, your back-end office functions are in good hands, powering the backbone of your business organization.

5. Risk Mitigation

Financial downturns, like the 2008 recession, and global catastrophes like the covid pandemic, revealed the vulnerability of overextended businesses. After the 2008 financial crisis, banks and financial institutions heavily leveraged BPOs to manage risks.

It’s estimated that JP Morgan saved over $2 billion post-crisis by diversifying its operations and outsourcing specific functions.

Outsourcing diversifies operational risks, offering a safety net against market volatility. With teams working remotely, your business can stay afloat with the help of expert staff working tirelessly, round the clock to ensure it all goes according to plan.

6. Leveraging the Latest Technology

The lightning-fast deliveries of companies like Domino’s aren’t just about speedy drivers. Outsourced back offices often employ the latest tech and software, ensuring efficient and modernized operations.

This infrastructure that allows for quicker processes takes trained hands to operate, which outsourced back office teams already possess.

7. Round-the-Clock Productivity

Ever wondered how global firms like Microsoft handle customer queries from different time zones? Back office BPO services operate 24/7, ensuring uninterrupted business operations and global reach.

With teams operating all across the globe, your business organization can reach monumental levels of success across all countries and time zones.

What Stops Businesses from Hiring Outsourced Back Office Support Teams?

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Businesses, despite recognizing the advantages, hesitate to hire outsourced back office support teams. This reluctance often stems from a combination of misconceptions, concerns about loss of control, and unfamiliarity with the outsourcing process.

Perceived High Costs: The uninformed belief that outsourcing is expensive and only for large corporations.

Quality Concerns: Worries about the standard of work and whether it will match in-house quality, often resulting from a bias.

Cultural and Language Barriers: Concerns about communication challenges and misunderstandings due to language differences.

Loss of Control: Businesses often fret over losing direct oversight and control over processes and sensitive data.

Data Security Issues: Apprehensions about the security of confidential and proprietary information that the country’s laws don’t uphold.

Contractual Complexities: The daunting nature of negotiating, understanding, and finalizing contracts with third parties, thinking it’s all too complicated.

Resistance to Change: A general inertia within organizations to alter existing operational structures, and a mind to follow norms.

Conclusion

In the grand theater of business, while the spotlight often shines on front-stage activities, it’s the back-stage crew that ensures the show goes on flawlessly. Embracing back-office BPO services isn’t just about offloading tasks; it’s about strategically enhancing efficiency, driving growth, and preparing for future success. Join us behind the curtain, and let’s craft a performance that stands out.

Sales organization and business process outsourcing specialist with over 15 years experience in building and running highly efficient sales and customer support organizations, and in providing board and project level consulting to the sales and service organizations of leading companies all over the globe. Developed and implemented staffing strategies and programs that improved operational outcomes and maximized the available staff resources. Specializes in client experience, business process re-engineering, business requirements development, contact center optimization, customer relationship Management, staff training and motivation, and organizational analysis. Has led multiple teams in the successful development and implementation of new business models in BPO industries.

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