Starting and running a small business is not as easy as it sounds. An entrepreneur experiences lots of challenging tasks that are hard to manage. Running all tasks in-house can be expensive. Businesses also need to recruit a massive number of employees to cover all work including front and back offices. Although there are difficulties, human nature is to find a solution for every problem we face – in this case, Outsourcing.
Nowadays, many companies tend to outsource their back-office work to a third party that enables their front office to function well. It takes a lot of brainstorming to determine which functions to outsource and which one will be suitable for you.
Here, we will talk about the 7 Most Outsourced Offshore Back Office Functions.
Why Outsource Back Office?
- Outsourcing back-office tasks will help scale your business
- Back office outsourcing is proven to be cost-efficient
- Companies that provide outsourcing services enable you to access the latest technologies and expertise
- A business becomes capable of focusing more on its core activities
- Outsourcing back-office work will reduce the workload
- 24/7 support
Most Outsourced Offshore Back-Office Functions
Data Entry Outsourcing
Data entry is amongst the most time-consuming tasks undertaken by a company. Data entry includes adding, verifying, and editing electronic data. The employee inputs data into a computer using input devices. The entire process is simple but tedious. You need professionals, your company needs to be analyzed, classified, and well-researched data.
Outsourcing data entry tasks can enable you to increase productivity and save a considerable amount of time that you can use to enhance work efficiency in other sections.
A company’s finance-related work has to be very efficiently done, and most new businesses lack the skill in this section, which usually requires 2 years of training and practice.
Finance, being the most critical part of business, needs an adequately set specialized team that will cost an insurmountable amount of money.
Additionally, It takes a long time and tremendous effort to find the best expert in managing accounts. However, Outsource finance and consider a third party to handle your company’s accounts with a well-set team full of experts.
Moreover, financial industries, such as banks and insurance agencies require experts for their financial-related tasks, and having trained outsourced staff can prove to be pivotal.
Customer Support Outsourcing
One of the most challenging decisions, still the best one for your company, is outsourcing customer support to another company. When a company serves its purpose successfully, customer inquiries increase rapidly. Data shows a 33% increase in customer retention rates as well as a 24% increase in customer acquisition when satisfactory customer support is in play.
Moreover, outsourcing organizations train their staff to maintain a standard that has been raised over time to provide customer support that serves to target customers’ needs. The customer support section generally needs a lot of employees to provide 24/7 support to their audience.
Also, It’s not easy either for a growing company to train a group of people and expand office space. So, it’s beneficial to outsource customer support to a call center.
The human resource department tackles management-related functions such as recruitment, training, employee development, salary structures, tracking departmental objectives, and so on. This department requires loads of paperwork and costs a considerable amount of money to function and maintain.
BPO organizations who excel in this field spend their time and effort filling their rosters with experts who can handle the job effectively, which leaves companies at ease to refocus on other fields. Outsourcing this section will enable a company to distribute the surplus HR budget to more essential office functions.
IT Support Outsourcing
The IT sector in a company is a vast area that helps run all the office functions smoothly. It is impossible to imagine a business functioning properly without an IT department. This section has many challenging works that one or two IT experts can sometimes cover up.
The area of the IT department is enormous. You may find a lack of expertise in every function an IT department serves. Here, we recommend outsourcing the entire section or only those you do not have internal knowledge of.
Let’s think, how many times a business faces legal issues in a year? Not much. Sometimes they don’t even need it once a year. Hiring individuals in this section may seem fancy for a growing business, yet having law support is crucial.
Consider depending on your reliable outsourcing partner when your business will need legal advice and support. WIth proactive law specialists at your disposal, you’ll never be left behind when it comes to tackling lawsuits and other legal issues.
The last thing we’ll talk about is the tasks that need to be done once or twice a year, or maybe a few more times. Hiring a workforce for these short-time functions and maintaining them consumes time, space, and money. But it would help if you had specialized, skilled people. Experts in specialized functions will most probably charge your business a smart amount of money every month. Therefore, outsourcing can cover you up.
Things to Keep in Mind before Choosing Partner
Now you know what tasks are to be outsourced, but how can you select the best outsourcing partner?
Choosing an outsourcing partner is also an important decision for your organization. Some key factors generally influence a business owner’s choice of an outsourcing partner. Here, we’re focusing on the things to keep in mind before you opt for a third-party company.
- Analyze the skills and quality of human resources you will be provided.
- Choose a reputed company so that you can be assured of their reliability.
- Select a company that will meet your standards and serves your rules and regulations.
- They should sign the confidentiality agreement.
- Your service provider has to ensure that their communication facilities are constant so that you can contact them frequently.
- Most importantly, make sure you get the best deal with an affordable budget.
Keys to Getting the Best Outcome from your Outsourced Work Partner
People who have experienced being on both sides of the stage as a company owner or higher management and work provider can tell you what attitude the other side should maintain. Being one of them, we’re mentioning some keys to getting the best outcome from your outsourcing partner.
- Keep consistent communication with the partnered company. Explain how you want the work to be done.
- Stay with your words. Whether it’s your meeting schedule, company policies, or payments, you should always keep your promise.
- Don’t ruin a good relationship over a price negotiation.
- Show them that you trust their service.
- If you want a high-quality result, provide them with all the information they need. Be responsive.
Which Outsourcing Function will Best Suit your Industry?
With such flexible and expert outsourcing options at your disposal, all you need to do is pick the right one for your business and get on track to reach new levels. We have made a comprehensive list of seven of the most outsourced offshore back-office functions that serve a multitude of industries.
Outsourcing companies offering Data Entry and Processing services have made themselves well-accustomed to serving IT firms, and if your business handles copious amounts of data that needs specialists to sort, this is probably the right back-office service for you.
For those in the finance industry, it is not uncommon to come across giants who outsource their finance functions to experts employed and managed by Offshore BPO organizations. It has been shown to streamline all aspects of the job while keeping timeliness in check. If you’re looking to streamline your finance business and boost its operations, you will benefit tremendously from hiring outsourced financial services.
Customer Support Outsourcing has shown its prowess in serving eCommerce and other service industries with highly trained individuals managed by capable figureheads. If your business falls under this category, you’re more likely to hire customer support outsourcing for the best results.
For those industries that handle large numbers of manpower that need proper and effective management, human resource outsourcing has proved to play an integral role in bringing everything under control. Your business will benefit highly from hiring human resource outsourcing if your staff needs management.
If you’re in an industry that deals in tech gadgets and other machinery, IT Support Outsourcing is the right back-office function for you.
Those hiring IT Support have trained professionals taking care of the nitty-gritty tech-related issues that usual staff would find puzzling. Law Support serves as a backbone for law and insurance firms as they have the flexibility to tackle legal issues with precision. If your business falls under the law industry, you are most likely to hire this back-office function as it will weigh in your favor.
If your business works in short bursts and you require specialized squads of experts for short-term projects, you might look to hire specialized outsourcing services that can cover almost any project over a broad spectrum.
Once you’ve weighed your options and decided on the back-office function that best suits your needs, you can go ahead and reach out to the best outsourcing companies globally to take on the job.
You might have to go through a few meetings where the work and its projections are discussed in detail. Ultimately, you will end up deciding on something that is best for the growth of your business.
Outsourcing facilities for offshore back-office services has made it easy to rise higher and ensure cost management for new businesses. But, at the same time, we should know what services to outsource and, based on those, which partner company to finalize.
Hopefully, this article will serve as our motto to instruct business owners on how they should move forward with their outsourcing strategies.