A Quick Guide to Back Office Outsourcing

A quick guide to Back Office Outsourcing

One aspect of gaining competitive advantage in today’s market for corporate entities is to implement appropriate strategies which can contribute towards reducing their overhead cost, improving revenue and enhancing overall growth. Business process outsourcing is an effective and efficient alternative to cut costs andexpand one’s business without having to make any bulk investment. Many businesses prefer to outsource their back-office functions and processes in order to avail the benefits of outsourcing. But before moving forward let us first understand what is a back office and what are its functionalities.

What is a back office?

A back office is that part of a business which includes administrative processes and support functions that are not client-facing. For instance, the accounting and IT services, regulatory compliances and record maintenance departments of a business falls under the umbrella of ‘back-office’.

Just like reliable customer support outsourcing, back office outsourcing is also gaining prominence in the BPO world. To perform any back-office support task in an efficient manner, a corporate organization needs to be equipped with the necessary infrastructure, modern technology, equipment as well as a pool of talented experts.The set-up of these resources requires huge pecuniary investments. And one way to address this task in an affordable manner is to outsource the non-core back-office process altogether to third party vendors.

The experienced back office outsourcing firms are used to offer services that speak of quality and accuracy. These firms can deliver customized services with the help of their state-of-the-art technology, up-to-date software and an army of talented staff skilled with hands-on experience. Usually, the back office support solutions offered by BPO firms include services such as

  • Data entry
  • Document conversion
  • Transcription (medical, legal, business etc.)
  • Web design and development
  • Staffing solutions
  • Internet branding
  • Teleradiology
  • Appointment scheduling
  • Legal research
  • Electronic media records etc.

Just like customer support outsourcing, back office outsourcing also involves certain features that clients look for before outsourcing their process to a BPO firm.The following are the features that are characteristic of a successful back office outsourcing.

  • Accuracy and versatility
  • A three-tiered quality control process
  • An affordable pricing range with 30% to 40% cost savings
  • Free trial facility
  • Regular report updates
  • A short turnaround time etc.

Reliable back-office services can help businesses achieve their true potential. By outsourcing these processes, a business can focus more and invest more of their resources on perfecting their core-competencies. Organizations can perform better when there is an assurance that their non-core processes are being handled by a skilled and competent workforce.

The following are a few benefits that outsourcing back-office processes can offer to businesses.

Reduced paperwork-

Back office works are typical of having a lot of paperwork. Any documentation or paperwork does not deliver any immediate value to the business and requires a skillful, experienced and a good amount of manpower resources. Here, outsourcing can help a business in reducing the additional paperwork burden.

Cost reduction-

The prime reason why outsourcing is increasingly becoming a lucrative business is that entrepreneurs and managers can significantly reduce their costs as well as the headcount by choosing to outsource a non-core process. On an average, a business can save costs up to 30% to 40% if one chooses to contract out to a cheap destination such as India, Philippines etc. And this attribute can alone attract a lot of small and medium businesses and also start-ups that are bootstrapping.

A skilled team-

As mentioned above, back-office functions require a specific set of skills that can be gained either through experience or through training. And since it is the bread and butter for a back-office outsourcing company, they are keen to ensure that the specific works of the client are handled by a skilled team of professionals which in turns expresses accuracy.

Round the call service-

By outsourcing to countries such as India and Philippines businesses can take the advantage of time-zone differences. The Philippines is a leading back office outsourcing destination for many prominent businesses. Just as with customer support outsourcing, third party vendors related to back-office processes also offer round the clock services to their clients.

Risk mitigation-

Many BPOs operate certain business models that allow them to share the business risks with their clients. It gives a relief to the client’s business that their concerns such as data piracy are well-taken care off by their outsourcing partners.


Back-office process is a critical and integral part of any business. Therefore, an efficient back-office process is fundamental to any business’s success. And it has been widely observed that businesses are increasingly leaning towards outsourcing back-office operations as it a cheap, effective, and efficient alternative.

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