Back Office Support Services: The Backbone of Any Business Operation
by Mayra Justin Back Office CentersBack office
has long been regarded as an auxiliary business process. However, its
importance is not lost on those entrepreneurs that truly understand how it can serve
as the backbone of any business operation. Those who ignore it, generally end
up lost in a myriad of paperwork, all confused and with nowhere to go. Many back
office support services like accounting, inventory management and data
entry are quite cumbersome and monotonous. Companies that do not have access to
workforce accomplished in back office tasks miss deadlines, fail to produce the
right paperwork at the right time and make careless mistakes that come back to
haunt them at later stages.
Back Office Outsourcing: The Solution to Never-Ending Back Office Problems
Generally,
back office tasks are not as difficult as tasks that are related with core
processes. However, companies fail to perform them with due diligence as they
simply do not have the necessary expertise and sensitivity required for
carrying out such tasks. Running in an in-house back office support services operation may sound like a good
proposition, however, it is a task riddled with great challenges. Some of the
challenges that can be solved with back
office outsourcing are listed below:
1. Procuring the right software – From item-level inventory
management to sales promotion to sales forecasting to invoice processing, each
of these tasks requires cutting-edge software solutions for their efficient
completion. Most companies either do not have the necessary funds to outright
buy such expensive tools or they lack the right kind of workforce that can use
these software. This is why most
in-house operations, especially the ones run on a small scale, end up using
substandard tools and fail to accomplish their tasks on time.
2. Investment in office space – For running a full-fledged back office
operation, you require dedicated office space. This requires you to invest in
real-estate, which can cost a lot especially in a developed country like the
US. A great way to overcome this challenge is by partnering with back
office service providers, who already have offices running back office
operations.
3. Need for hiring employees on payroll – Although
back office operations are essential, they do not require the best talent for
their accomplishment. Most back office tasks like data entry can be done by
employees with average skill levels. When you run a back office operation
in-house, you need to hire a lot of employees (with average skills) on your
company’s payroll. You also have to provide
them with regular benefits (that you provide to your other employees) like
medical, dental etc. This can be a major headache for the HR department.
Moreover, unlike in a core operation where the hired employees can grow
vertically and be useful to an organization in future, back office workforce
that you have hired generally does not offer any additional advantage. Hence, back
office outsourcing becomes a better option than an in-house operation.
Conclusion
In this age
of competition, companies are looking to minimize their day-to-day challenges,
so they can focus more on innovating and creating better product. The challenge
of back office management has always remained a hurdle for many business
operations. In order to overcome this obstacle and enhance the quality of back
office operations, taking the help of back
office service providers is a great option.
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Created on Mar 27th 2019 03:31. Viewed 729 times.