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Home | Blog | Smartly Outsource Your Back Office Services With This Comprehensive Guide

Smartly Outsource Your Back Office Services With This Comprehensive Guide

By Magellan Solutions

Updated on August 7, 2023

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This is your ultimate source of information when you decide to outsource back office services


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.


What is Back Office Support Services?

Every firm has operational and administrative responsibilities that take time away from activities that include direct client contact with customers. Even though back-office jobs are repetitive and tedious in nature, many employees avoid performing them because they are unpleasant. As a result, there are numerous advantages to outsourcing back-office support for a company. Not only do you have the ability to scale your operations whenever you want, but you also have the option of sharing the weight of your labor with someone else.

Back-office support is the department of a corporation that is responsible for giving assistance to the front-desk staff. Some of the responsibilities they carry out include administrative support, managing records, data management, digital marketing, and a variety of other sectors, depending on the organization and industry. Although personnel who work in back-office support do not have direct contact with clients, they retain a tight working relationship with those who work in the front office. The ability to communicate effectively between back-office and front-office staff is critical to the seamless operation of a firm.


What are the most typically outsourced back office jobs?

With the attraction of offshore back-office services, a number of back-office operations are certainly grabbing the opportunity to gain from outsourcing.

Here are some of the most outsourced BPO services:

Data Entry

This work entails retrieving data from a specific media and inputting it into a computer system using a data entry interface in a separate medium.

In basic words, it involves copying and pasting data from one system to another. The challenging part occurs when data needs to be evaluated, classified, or interpreted or business rules applied before being entered into a system.



Calculation errors in payroll are often caused by a lack of experience in the payroll practice. When the team is distracted, they are more likely to make mistakes.

One of the benefits of outsourcing is the flexibility to focus on a specific work that the client requires.

Offshore employees are also given proper training in order to increase their experience and skills. Outsourcing payroll activities allows organizations to cut payroll taxes while also minimizing human error. This guarantees that employees are paid accurately and on schedule.


Human resource

Human resource outsourcing supports firms in structuring their recruitment operations, strengthening their personnel, and enhancing employee satisfaction and retention.

It also assists the creation of a stronger human resource strategy and the establishment of systems and procedures.

All of these advantages are available because outsourcing HR services adds better experience and access to more advanced technologies.


Information Technology

One of the most vital tasks in any organization is technical assistance, which is also one of the most diverse outsourcing industries.

Outsourcing IT services will lead to the most up-to-date technological instruments for a firm. It also offers remote assistance, which could be tough for a small firm to operate.

Access to cost-effective storage, high-level security, and contingency plan services are further advantages.



A startup, a small corporation, or a giant company all realize the value of brand marketing. However, it takes time to do so.

An outsourced marketing team will build and implement marketing plans across all channels, allowing the company to focus on its primary obligations.

Furthermore, businesses can relax knowing that their marketing planning and implementation are handled by professionals.

The decision to outsource back-office operations is crucial in order to reduce the workload of the in-house team and focus on more critical elements of the business.


Optimize Your Back Office Support Through Outsourcing


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


Record maintenance

Regulatory compliance

Finance and accounting

IT services

Human resources

Order fulfillment

Transaction processing

Document preparation

Account maintenance

Client services

Dispute resolution

Customer onboarding

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:

  • Rent savings
  • Increased productivity
  • Access to talents in various areas
  • Attract diverse pool of applicants

Also back office support is often distinguished in two ways: traditional and modern. 


Key Differences Between Traditional and Modern Back Office Outsourcing


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:

  • Data entry and transcription
  • Document scanning
  • Document and records management
  • Transaction processing
Focus are on the following:

  • End-to-end customer journey
  • Consistent reporting framework
  • Standardized common management processes


Advantages When You Do Back Office Outsourcing


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.

More room for flexibility

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. 

Reinvest the business

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.

Access to the latest tech

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.

Focus on core business activities

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. 


A sub-image by Magellan Solutions on the blog titled Smartly Outsource Your Back Office Services With This Comprehensive Guide


How to Effectively Outsource Your Back Office Services


These are the great tips to consider when you decide to do back office outsourcing

1. Begin with clear vision

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. 

2. Zoom in on safety

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

3. Prioritize quality

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.

4. Intelligent automation

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.


Magellan Solutions For Your Back Office Outsourcing Needs


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.

Contact us today and get the best optimization on your back office operations. Fill up the form below!


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        Smartly Outsource Your Back Office Services With This Comprehensive Guide

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