The rightful
performance of any core operation relies upon successful execution of back office support services. But, unfortunately, these services never get the importance
that they deserve and stay hidden in the background. Due to a lack of emphasis,
back office services are not performed up to the expectations, which
automatically results in the failure or substandard performance of main tasks.
Back Office Support Services: Why They Are so Important?
There are
many back office support solution that are critical for the rightful completion of main tasks. Services like data
entry, data mining, accounting, inventory management, human resource management, and catalog management require a dedicated workforce for accomplishing critical
operations. For example, without proper data entry, you won’t have a database
to rely upon. You will not be able to utilize the data for generating new
insights. Similarly, without proper catalog management, you won’t t be able to
categorize and sort the products. This will impact your ability to sell your
products through different mediums. Many similar problems arise due to
inefficient completion of back office work. To prevent this from happening, it
is better to outsource back office instead of
using a substandard in-house back office operation.
Back Office Outsourcing vs. In-House: Which Is the Better Option?
When it
comes to performing back office operations, there are primarily two options in
front of companies: in-house department or outsourcing. Below is a comparison
of both with regards to different factors:
1. Flexibility in costing – Costing in an outsourced operation can
vary greatly depending on the country you have outsourced your work to. When a
company in the US uses back office outsourcing companies in India, they are able to lower the cost of
operation by more than half. But the same outsourcing venture to a company in
Europe may not provide the same cost benefits. However, the cost of an in-house
operation is more or less the same. You have to spend on real-estate,
infrastructure and hiring new employees. While you can lower the cost of
operation in an in-house operation, it generally results in the degradation of
the process.
2. Software – Back office services require pertinent software for efficient
completion of tasks. Many CEOs and CFOs consider purchasing pricey software for
running a back office operation an illogical investment. However, a back office outsourcing company regards these software solutions as vital
for their day-to-day operations. Hence, when you partner with a competent
company, you generally get access to the best software without breaking the
bank. Software for Optical Character Recognition (OCR), IT helpdesk software,
and email response management tools can go a long way in streamlining the
workflow and allow for better performance of work.
3. Focus – By running an in-house operation for back office services, you
will be diverting your focus away from the core operations. This can adversely
impact the performance of your main tasks. But, when you employ back office outsourcing, you no longer
have to worry about managing back office tasks. This allows you to improve your
product/services.
Overall, back office outsourcing is a
clearly better option when compared with running an in-house operation. It
creates the right foundation for your core services and helps you achieve
better results in the longer run.
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