Back office services continue to improve for the better, thanks to outsourcing. While the media hype that automation and robotics will soon eradicate human factors in a company’s process management, that is not really the case.
Automation, AI, and robots will not obliterate your company’s need for human employees. However, they can surely improve how your employees will perform and drive the results you want.
In general, back office outsourcing has been the go-to for businesses, from industry players to SMEs. Especially when they want to gain access to automated processes, intelligent analysis from AI-driven technologies, and people with the right expertise.
If you want to optimize your back office operations and are thinking of outsourcing your way to it, read on below.
Back office operations involve administration and support personnel not dealing with customers or clients. Often they are not also involved in revenue-generating processes. However, they are part of the processes to make sure your business can continuously serve your customers and stakeholders.
It could be divided into two: administrative functions and customer support functions.
|Back Office Support: Administrative||Back Office Support: Customer Support|
Finance and accounting
It is a proven fact that due to outsourcing, a lot of companies opted to do so in order to save on costs. As technology enabled remote-work arrangements and efficient management of such offshore teams. This is to make them aligned with the company’s goals and objectives.
Other than costs, back office outsourcing provided a lot of companies with these benefits:
Also back office support is often distinguished in two ways: traditional and modern.
These are the differences between traditional and modern back office support when you outsource.
|Traditional Back Office||Modern Back Office|
|Characterized as the paper pusher of the company. This means it deals with hundreds of forms and documents.||Paper pushing is still present but leverage of automation is there. This leaves for more complex tasks to work on.|
|These need recording, classification, analysis, processing, and filing.||This requires different skill sets such as research and analysis, critical and creative thinking.|
|Processes are manual, tedious, time-consuming, and error prone.||Processes focus on tasks that need critical thinking.|
|Tasks performed are repetitive and rules-based.||Automation may lead to a more collaborative approach to managing the business and back office support teams.|
|Managers often spend time in reporting analysis instead of managing the team members and keeping them engaged.||Automation helps free the managers from repetitive tasks thus can focus on the development of the team.|
|Roles may include but not limited to:
||Focus are on the following:
Outsourcing your back office services comes with notable benefits that improves and contributes to your business growth.
Outsourcing enhances your bottom line as it is a much affordable solution. Especially when you have to think about the cost you have to spend in developing and maintaining your back office infrastructure.
As well as the labor charges, employee attrition, investment in the latest technology and training. But when you outsource, you can get ready-made infrastructure plus affordable labor offshore.
Businesses set themselves apart from competitors through their ability to ride the changing market trends. Back office outsourcing provides the needed flexibility in order to meet the market demands.
This is in connection with benefit no. 1. As now you can save through outsourcing back office services, you can invest these money on your business for service delivery improvement.
When you do back office outsourcing, you can amplify your goals and objectives through investment directly on it. This also serves as your buffer to prepare for what’s to come in the market.
Outsourcing providers can give you immediate access to the latest tech and infrastructure. This saves you time, money, and resources just to acquire your needed technology or software. This helps you leverage the latest innovation without actually buying them or re-training your staff to maximize its usage.
Now that you free your in-house employees on tasks that you outsourced, they can focus on tasks that contribute directly to your income-generating efforts. This means focus on your business visions and enable you to pay more attention to core aspects of the business.
These are the great tips to consider when you decide to do back office outsourcing.
You must not treat outsourcing as mere passing of tasks to an offshore team as it could lead to inefficiency. That is why you need to map out or outline detailed workflows for each task you want to outsource.
You can use this workflow to check against areas of opportunity and error to help assess the quality of your outsourced team’s work.
Outsourcing does not mean lax safety of your data and information. In order to make sure that your data is protected at all times, only partner with an outsourcing provider with ISO 27001-certification. Also look at other safety certifications such as GDPR and HIPAA.
Thoroughness and efficiency is what makes back office outsourcing an effective tool to improve your business operations. That is why you need to capitalize on quality audit, especially for critical and financially sensitive processes.
Depending on your chosen service package, AI-driven processes are included on the service your outsourcing provider can give. That is why you need to set your goals and objectives first hand before looking for a third-party provider to enhance your back office operations.
We have 18 years in the service and we continuously provide excellent back office support to business from a lot of industry verticals.
Magellan Solutions capitalizes on our ability to provide excellent and experienced staff to optimize your back office. Our infrastructure supports AI-driven and process automation to ensure we can provide faster turnaround time on top of quality and efficiency.
We are ISO 27001-certified and compliant with GDPR and HIPAA. This is our assurance that we protect your data and information at best.
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