A lot of work goes into cultivating a successful business. Unfortunately, many of those processes — such as human resources and information technology — have nothing to do with the actual product or service you’re delivering. When you hire a top-tier back-office outsourcing firm, professionals handle all of those essential administrative tasks on your behalf. In turn, you will be free to focus on pushing your company, product, or services forward instead of spending time with behind-the-scenes duties.
What is Back-Office Outsourcing?
At the most basic level, back-office outsourcing is the process of hiring a third-party company to handle the gritty tasks of your business that don’t directly involve delivering the product or service you sell to your customers.
Back-office tasks include:
- Human Resources
- Financial reporting
- Information Technology
- Data entry
- Data analysis
Think of it as hiring a single company to do the work of multiple departments with increased efficiency and efficacy.
What is Business Process Outsourcing?
Also known as BPO, business process outsourcing is an umbrella term that includes both back-office and front-office services. We describe the former above, and the latter encompasses functions such as customer service and technical support. Depending upon your company’s needs, you could require a full BPO solution or only back-office support.
Benefits of Business Process Outsourcing
1. It Saves You Time
The benefits of back-office outsourcing are numerous, but none are as noteworthy or eye-popping as the amount of time you’ll get back in your life. Just think of all the tiny tasks you, your leadership team, and your office administration do on a regular basis. Very few of those tasks actually involve furthering your products or services.
Hiring an outsourced back-office company will free up your days, nights, and weekends from mundane work so you can do what really excites you, and it will benefit your company.
2. It Saves You Money
We hear you thinking, “How can hiring an entire company to do my back-office work actually save me money?” It’s simple: instead of hiring someone internally to do your accounting, reporting, and IT duties, you’ll get an entire team of experts for about the price of a single employee. You’ll save money on salary, benefits, and other related costs while increasing the number of people pushing your company forward.
3. It Saves You Resources
For every new person you hire to take care of any back-office assignments, you’ll need to purchase an entire employee setup — including computers, office space, and related materials. By going with a back-office services provider, you can shift your available resources to the staff working on the core projects and responsibilities that grow your business.
4. It Provides Focus
If you can’t tell yet, the perks of outsourcing your back-office support services are cumulative. If you’re able to save your business time, money, and resources, then you can pay greater attention to the true work you need to accomplish. You won’t have to stop working to think about payroll or reports; instead, you and your team can stay focused on solving problems, innovating, and developing new solutions that drive success.
5. It Increases Efficiency
Working with an experienced outsourcing company means they have specific policies, procedures, and processes in place for all of your back-office needs. Not only will the practices they implement streamline your operations, but they can help you locate and correct inefficiencies in the current way you do business so that you can work more effectively.
6. It Delivers Expertise
Unless you started your company in hopes of developing back-office services, you probably aren’t an expert in payroll operations, human resources procedures, and similar tasks. However, you still need someone to do that work if you want to keep your employees happy and your company thriving. With a reputable back-office outsourcing company on your side, you’ll work with a fleet of industry professionals who are absolute experts in these areas.
7. It Offers Stability
The last thing your company needs at any stage is operational uncertainty. Thus, you need to put the same attention and effort into your back-office work as you do for your core enterprise. Outsourcing your back-office needs to a knowledgeable firm shows your staff and your investors that the day-to-day and long-term health of the company is top of mind for you. Yes, it’s essential that your business successfully achieves its goals, but you also need to manage your payroll, offer IT services, and ensure your accounting practices are flawless.
Effective Back-Office Outsourcing Services Will Grow Your Business
No matter the size of your company, you can find some way to benefit from hiring an outsourcing firm to handle your back-office tasks. It’s simply a matter of locating procedural inefficiencies in your operations and finding a trusted third party to complete the bulk of them on your behalf.
Put another way, it’s an exercise in resource management. If you don’t have the people, skill sets, time, or energy to devote towards doing this work internally, then hiring an entire company that costs as little as one mid-level employee should be a no-brainer. You’d have a full arsenal of skilled practitioners doing important assignments that relieve you of the stress and burden of administrative work.
Are you ready to find an outsourcing company with a proven history of successful back-office administration? EAG 1Source can determine the best possible outsourcing services for you based on your business needs, scale them as you grow, and set you up for long-term success. Learn more about what we do, and the types of resources we provide to supplement your staff.