Back-office support outsourcing refers to the method by which certain low-valued office processes get outsourced to a specific third-party vendor. These third-party vendors perform several managerial, operational and assisting functions of the company which are not directly linked to its central business functions.
Tasks included in the back-office functions can be accounting, data entry, invoicing, IT Support, customer support, payroll management and several other managerial functions. There are several benefits of Back-office outsourcing. It is profitable and efficient as your work gets outsourced to a specific, specialized agency.
If you want your business to achieve more sales and profits, back-office support is the way to go. You can outsource your daily, time-consuming activities to these specific vendors as this lowers cost, enhances efficiency, exposes the outsourced business to the more improved, latest technologies and most importantly, helps your organization to focus better on its core business activities.
What Is Back Office Data Entry Work
Most businesses and organizations have to manage and process huge amounts of data and transactions. Back office data entry work involves input and management of data in a company’s support functions. The input data can be of various kinds, such as information regarding customers, financial records, etc. Back office data entry work also includes tasks such as data processing, verification, maintenance as well as data security. It also involves the action of producing reports and summaries based on the input data.
These reposts can be used for investigation and making decisions. Entering data in computerized form, from paper documents is a tiresome job. It is more desirable if these tedious tasks are performed by a specialized service provider. Our team at eDataIndia has highly skilled employees and we provide data entry support to several companies in different sectors. We can help you enhance your business by providing data that is very easily accessible.
5 Most Outsourced Back Office Support Devices
Human Resource
It is important to outsource your human resources if you want to organize the recruitment process, bolster the workforce and enhance employee satisfaction in your company. It also helps develop a better approach to human resources by formulating workflow systems.
For example, the company Accenture has outsourced several back-office functions to India, which include customer support as well as human resources.
Enterprise Resource Planning (ERP) Systems
Several back office functions such as accounting, human resources and supply chain management are consolidated by these ERP Systems. Outsourcing ERP Systems will help your company to utilize the skill and expertise of the specialised vendors, to focus on their core business functions.
The eminent IT company Wipro has utilized outsourced ERP systems to several clients in different industries across India.
Payroll
Calculation errors commonly occur in payroll, especially due to the absence of skill and expertise in the payroll practice. Lack of focus also causes the employees to make errors. When you outsource payroll, better training is provided to the employees helping them attain greater knowledge and expertise. Thus, human error is negated and payroll tax evaded.
A prominent multinational company like Infosys has outsourced several back-office functions, including payroll to clients around the world.
IT Infrastructure And Support
It is difficult for companies to maintain IT Software that may include hardware, software and networks. Outsourcing IT infrastructure makes it cost-effective for your company. The company is also provided with the latest technological tools, which increases system reliability.
The multinational company IBM has set up back-office operations in India for IT Support and has been a huge success in its field. Also, outsourcing back-office support has allowed IBM to optimize their resources and improve customer service.
Customer Relationship Management (CRM) System
CRM Systems are essential for handling customer information, sales data and interactions with customers. Your business can outsource CRM systems to third-party vendors who possess expertise in CRM management and development.
Benefits Of Outsourcing Back Office Functions
Scalability
When a business outsources its back office functions, it provides them with the opportunity to flexibly scale the company operations, according to their specific needs. With the progressive growth of a business, outsourcing helps in better expansion without the cost of external infrastructure.
Cost-Effectively
When a company outsources its back-office functions, it results in a significant amount of cost reduction. Outsourcing can help companies negate costs relating to infrastructure, office area and employee benefits.
Right To Use To Latest Technologies And Expertise
Outsourcing back-office services can help a company get access to the latest technologies, specific knowledge and expertise in the respective back office functions. Our team at edataIndia have employees specifically trained at managing tasks that include data entry, human resources, payroll, etc.
More Concentration On Main Business Activities
When a business outsources its back office functions, it can focus its energy and resources on the core strategies and actions. The business can dedicate its energies to important business purposes such as marketing and customer service, which in turn increases productivity.
Time-Zone Differences
Certain time zone advantages can be achieved by outsourcing back-office functions to off-shore locations. This generates a quicker turn-around and is helpful for services that rely on time sensitivity, such as data processing or customer support.
Decrease Corporate Overhead
Back-office outsourcing can effectively reduce Corporate Overhead by reducing labour costs, and expenses in infrastructure, lowering costs in recruitment and training, etc.
Disadvantages Of Back Office Outsourcing
Inadequate Attention
Outsourcing your back office operations may result in a loss of knowledge and attention in the particular function, which was achieved in the core business. An external vendor may lack the knowledge, expertise and familiarity with your industry.
Cultural And Language Obstacles
Cultural and language differences can often create obstacles when you outsource back office functions to off-shore locations. Differences in work culture, communication and business manners can create significant gaps and disturb smooth transactions.
Issues With Quality Control
There is no doubt regarding the cost-effectiveness of back-office outsourcing, but it does result in a significant reduction in quality. The outsourcing vendors may not have similar expertise to your core team. This may later deteriorate your brand value.
Data Security
When Back-office tasks are outsourced, there is a significant risk of sharing sensitive and confidential information with the third-party vendor. Therefore, it is important to have powerful security measures to prevent breaches of sensitive data and information.
Conclusion
It is evident that there are several benefits of outsourcing back-office functions. It helps to enhance efficiency, ensure the smooth running of operations, and increase focus on the core business functions. Employing third-party vendors to look after non-core functions helps to lower costs and generate access to the latest technologies and infrastructure. In spite of the many advantages of back-office outsourcing, careful selection of a reliable service provider is essential.
Back-office outsourcing is necessary for businesses that want to focus more on their core business functions and improve cost efficiencies.
Companies such as Google, Alibaba, Slack, Basecamp, and others have used outsourced employment for years. Google also collaborated with Globant, a technology services company, to successfully build Project Ara and related software. Outsourcing enabled Alibaba to circumvent Chinese internet restrictions and localise its website for both Chinese and English speakers.
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