Businesses often delegate their repetitive and mundane business processes to specialized outsourcing organizations. The BPO industry has continuously risen to meet the growing needs of businesses all across the globe and as a result, outsourcing has become the mainstream recruitment solution.
Of these standard tasks, there are two which sound alike but have processes that are poles apart. The front office and back office jobs are very commonly outsourced but what are they?
Here we will compare and contrast both these terms and break them down for you in a way that will clear it all out.
Front Office Outsourcing
Front office outsourcing includes all tasks that involve dealing with customers. The front-office individuals take responsibility for interacting with the existing or new clients and ensuring high customer satisfaction.
All actions that involve generating sales, meeting client demand, and providing after-sales services are different facets of front office tasks.
The employees set their goal to ensure the highest client satisfaction through service marketing, client meetings, client relationship building, and interviewing candidates.
They play a significant part in maximizing company revenue. In recent times, companies are hiring remote front-office employees from outsourcing organizations where they can find efficient workers who meet their requirements
Here are some examples of front-office work that can be outsourced:
- Customer care
- Technical support
- Market survey
- Marketing and sales
- After sales service
- Help desk support
- Taking outbound and inbound calls
Back Office Support Outsourcing
Back-office is more relevant to behind-the-scenes processes. This section isn’t directly involved in generating revenue; instead, they work effortlessly behind the entire business operation to keep the infrastructure in check.
Without back-office support, the company wouldn’t be able to function. Back office roles require strategy-based thinking, operational decision making, daily work progress, defining workflow, and many more.
Outsourcing back-office tasks are more popular than front office tasks as they directly affect the revenue. To run back-office support, a company needs a highly efficient team with various technical knowledge and skills.
In most cases, finding people with all of the required skills at once is difficult, so business owners look for a workforce in online marketplaces, and overall, it is a proven method to get a decisive outcome.
Back office outsourcing work includes:
- Human Resources
- Data Management
- IT functions
- Content writing
- Digital Marketing
- Quality assuring
- Back Office agents
Front Office vs. Back Office Outsourcing
Business activities operate on these two wings. Front office activities and back-office activities are crucial for running a business with the goal of success.
The front office is the face of a company, while the back office work as admins who maintain stability. Although there are some similarities, and one section can’t function without the help of others, they have their differences.
Here are some key differences between the front office and back-office tasks:
- The front office handles all face-to-face client communications. Every new and existing client is usually familiar with the front office team handling direct communication. In contrast, the back office team doesn’t directly contact the clients. They work behind the scenes.
- The front office team deals with after sales services, sales generation and all other tasks related to the marketing department. On the other hand, the back office team has to deal with the administration, account, finance, and IT departments.
- The front office is directly connected to generating revenue, while the back office works towards cost reduction and revenue-boosting strategies.
- The front office captures new deals mainly brought about by the consistent support of the back office.
- The front office works to increase client demand. The back office provides the strategies and helps manufacture products and maintain product quality.
- Front office work is significantly reliant on back office operations, as they ensure that all processes, whether administrative, HR, or IT, function smoothly.
The duties of several back-office functions have increased rapidly over time. For example, previously, IT’s role was primarily limited to hardware.
Inherently, the IT team in investment banks currently consists of professionals who develop crucial technical infrastructure that supports the essential operation. As a result, they are coming up with effective strategies for front office functions.
Things to Think about Before Outsourcing any Business Work
- Discuss with the internal team: Before you outsource work, consult with your internal team who are intimately familiar with the project’s movements and activities. The outsourcing work process is going to introduce some changes to the existing process. Don’t keep your employees in the dark; discuss with them, make suggestions, and also think about their objections.
- Proper Research: Proper research is a must. Business owners know very well that running a business is all about taking risks. Investigate the work you intend to outsource. Keep legal issues and legislation in mind as a precaution.
- Operational Cost Management: Outsourcing requires different cost management. Prioritize cost reduction rather than increasing expenses. You have to take the initiative that will get you the best working output within your budget.
- Privacy and Legal issues: Hiring an outsourcing company means giving them access to lots of business data, information, and activities. Your operational process, customer data, and purchasing details might be open to them in many ways.
The real problems arise when an outsourcing company reveals the business information they possess. Decide rationally and pursue a legal contract with the outsourcing company. Assign a team to take care of the privacy and legal issues.
Business process outsourcing is spreading rapidly. Businesses have started relying more on outsourcing companies for their front office and back office work. However, outsourcing strategies aren’t the same for all organizations.
Methods differ mainly depending on the type of company you run and the kind of work you will outsource. Selecting the right outsourcing partner for the right project is essential. Focus on the key points you need for your front office and back office support and aim towards success with efficient outsourcing!