Key Points to Consider in Back Office Outsourcing

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Back office functions, such as accounting, data entry, human resources, payroll, and customer service provide businesses with an underlying support structure behind most client-facing tasks. For startups and small businesses, back office work may seem manageable, but as the organization scales up, back office can become one of the biggest challenges every business has to face.

Fortunately, back office outsourcing provides companies with a strategic way of dealing with these non-core tasks without affecting the other aspects of the business. It is also a convenient way to cut costs and gain access to specialized skills and expertise the business needs as it grows. It can also allow for redundancy and coverage during off-hours and free up your core staff to complete higher level, core function, revenue generating tasks.

However, just like other outsourcing models, back office outsourcing needs to be grounded on a structured approach to ensure quality output and prevent errors along the way. Here are some key points every business owner should consider when planning to outsource back office tasks.

Plan Ahead

Outsourcing is considered the easy way out for business owners when the tasks pile up or when it’s hard to make ends meet due to limited resources. However, getting into outsourcing is easier said than done, especially if it is your first time to outsource. You need to determine whether it is the best solution and how it will work for you.

So before you jump on to the bandwagon, here are some steps you need to take:

  • Discuss your outsourcing strategy with your partners and employees. Outsourcing is a crucial decision that requires collaboration from everyone. Involve your team during the planning process and gather insights from everyone.
  • List down which tasks you want to outsource. Depending on your needs and your budget, you need to determine which tasks you need help with and which ones to stay in-house. You should also consider outsourcing tasks that require specialized skills.
  • Consider the benefits and drawbacks of back office outsourcing. You need to be prepared, not only for the benefits this strategy will bring, but also the disadvantages. This will allow you to plan counter-measures to mitigate or avoid the negative effects.

Choose the Right Outsourcing Partner.

There are a lot of outsourcing agencies all over the world, but the Philippines is considered to be one of the top outsourcing destinations because of the English language proficiency and staff work ethic. To help you narrow down your search, here are some factors you need to consider when choosing an outsourcing agency:

  • Quality output – What systems are in place to ensure quality of work?
  • Data security – How does the company handle your data?
  • Turn-around time – How long is the completion period for each task?
  • Availability – What is the company’s working schedule? Are they flexible?
  • Packages – Are the packages fixed or do they offer customized services?
  • Cost – Are their services affordable?

The factors above will help you in finding the most suited outsourcing agency for your outsourcing needs. Outsourcing is a big decision and you should feel comfortable and at ease with the process and choosing the right partner can make or break the engagement.

Monitor Your Outsourcing Campaign.

Back office outsourcing is an ongoing process which needs to be monitored for results. Keep your communication lines open and maintain a positive working relationship with your outsourcing partner. By collaborating and communicating with your outsourcing partner, you ensure maximum efficiency, productivity, value for your dollar, and ultimately- your satisfaction. Want to learn more about how to effectively outsource your back office tasks? Contact Global Strategic to help make the process easier and get you started.

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