Never Underestimate the Value of Back Office support

Just like a coaching staff stays hidden but plays an important role in the performance of a team, back office operations take place in the background away from the public eye. However, just because they are not as evident as other operations does not make them any less important. Generally speaking, back office operations include record maintenance, settlements and accounting services. In the past, these operations were mostly handled by in-house teams. However, off late, with globalization and rapid rise of IT technologies, back office support operations are frequently outsourced to other countries.

Do you feel good after reading the above mentioned benefits? Are you ready to jump the ship now? Don’t be in a hurry. You need to first understand some of its risks. Yes, outsourcing does have its perils, but don’t worry, they can be overcome by being cautious and selecting the right company.

1.      One of the biggest risks of outsourcing is that you have to provide sensitive information of your company and your customers to a third-party company. The best way you can overcome this risk is by placing your trust in a company that has a long history and good reputation. A company that is working for a long time will have a lot of clients. Such a company simply cannot afford to displease its clients and will definitely take utmost care of the information provided by you.

2.      Another disadvantage of outsourcing back office support to another country is real-time communication. Due to time zone difference, it may not be possible to interact or extract the necessary information timely, which can affect operations. You can overcome this disadvantage by choosing a company where employees can work night shifts, so that you can get in touch with them whenever you want.

Advantages of Back Office Outsourcing                                                                

Unlike core operations, which require frequent intervention of the decision makers, back office operations are not that demanding. There are many back office outsourcing services available in the market with immense capabilities. All you need to do is open your eyes and scan the landscape before putting your faith in one of these services. Have a look at some of the advantages of outsourcing:

1.      Financial Gains – 50% of the cost of business operations is due to back office tasks. If you manage to find a quality outsourcing company in a country with lower currency value than yours, then you would immediately start gaining financial advantages. In countries like India, you can find back office service operators that can offer you exceptional level of services at a rate that is 5 times lower.

2.      Fewer Burdens on Businesses – Outsourcing relieves you of the burden of managing different departments. Just leave your business in the hand of an adept service provider, and then sit back and relax. You would still need to check out the weekly or monthly reports to ensure the sanctity of your business is not disturbed. However, this is a small amount of effort when compared with the task of managing the whole operation.

3.      Skillful Resources – Do you know countries like India and China are extremely good at mathematics? As accounting services require good math skills, it won’t be a bad idea to outsource your operations to these countries. Access to skilled workforce at considerably lower rate, who won’t like such a proposition?