Since the hit of COVID-19 across the globe, it has completely changed the landscape of business practices. In the past, employees working for companies were required to physically be at the office working from 9 to 5. But then they realised the benefits of having remote workers.
Smaller businesses started considering back-office outsourcing to remote workers out of the country to significantly reduce cost.
What is back-office outsourcing?
Storefronts help businesses generate sales and profits, but it needs support to do so. Vital back-office functions such as accounting, bookkeeping, data entry, human resources etc. need to be in place. However, it all costs – rent, equipment, supplies, labour cost.
Large companies typically have in-house teams to support their functions. But for small business owners, they will choose to outsource these functions to a third-party – contracting them to do all the work for the business.
Benefits of Back-office Outsourcing
For new entrepreneurs, it might be tempting to do all the administrative tasks yourself. But in the long run, it will take out much of your valuable time on income-generating activities. Here are two main advantages of why you should consider back-office outsourcing.
Receiving professional services
Hiring and maintaining a full-time employee is costly to businesses in developed countries. Business owners pay salary, benefits, employment insurance, pension plans and more. With outsourcing the functions, businesses can have their administrative work done with a much lower cost and efficiency.
Making your company more competitive
Small business owners should spend more time searching for new business opportunities rather than spending hours in front of the computer preparing taxes and invoices. With back-office outsourcing, you have the option of choosing what functions to be outsourced. For example, one might want to outsource only the tax reporting but not the bookkeeping function to a professional accountant.
Business owners should consider the long-term plan of their businesses when choosing an outsourcing company. Will the company expand internationally? Will the business grow in the future? Are there going to be more shareholders in the company?
Free up time and money
This is the biggest benefit for business owners. You can hire a quality full-time employee at a fraction of the cost. It can also eliminate the office location and you have access to professional, top-notch services whenever and however you want.
More and more new businesses are leveraging the power of back-office outsourcing to find more time in their day and save costs.
Conclusion: All About Saving Time and Money
COVID-19 pandemic is a wake-up call to all businesses around the world to adapt to new practices. Business owners have learned that remote work has endless possibilities in the current era. Renting an office is not necessary now and employees are encouraged to work remotely.
With the expansion of the internet, back-office outsourcing to another country has become increasingly popular nowadays to reduce cost. It helps business owners be more competitive in the marketplace and save time.