back office

Everything You Need to Know About Back Office Outsourcing

Running a business means overseeing all of its functions. These functions are commonly divided into two categories: the front office, which handles all processes that serve as the façade of your company; and the back-office which is responsible for administration and support functions.

Usually, large enterprises build their back-office away from where the front is. On the other hand, small businesses often utilise their few employees and ask them to multi-task to save on labour costs. However, making an employee do one too many jobs can compromise the quality of their outputs. 

In order to effectively cut costs on labour and other expenses, companies have resorted to back-office outsourcing.

What is back-office outsourcing?

Back-office outsourcing refers to the act of getting a third-party provider to build a support team on your behalf. Doing this will help you save a huge cost on your expenditures as well as gives you more time to focus on your core tasks.

Some of the most important back-office services that businesses commonly outsource are IT services, personal virtual assistants, HR and payroll. Clearly differentiate the dissimilarities between back-office and front-office functions to avoid getting confused.

Why do businesses offshore their back-office services? 

Since the back-office people are not required to face various clients, offshoring your services in any part of the world is a good alternative. Doing so is just as effective as having an in-house team—but with lower costs.

In a survey done by Deloitte, more than 80% of businesses around the world consider outsourcing as a positive experience. On the same survey, companies reported that it enabled their onshore team to focus on their core tasks. Implementing this strategy has helped them solve capacity issues and improve their overall performance.

As a business owner, you should know that your time is highly-important. So partnering with a reliable offshoring company will lessen the load of personally hiring your back-office staff. Only then you can focus on growing your business and nothing else.

Offshoring back-office work not only reduces wage fees, but it also eliminates extra expenses in terms of allocating office space and purchasing new equipment. For example, instead of buying new units to provide for additional in-house staff, you can outsource IT support and just pay a fixed operational fee. According to Statisticbrain, 34% of companies prefer outsourcing IT services so they won’t have to spend more resources to buy those that are unavailable internally.

So if you have been looking into back-office outsourcing for a long time now, then maybe its time you consider doing so. Take a moment to assess your business and see if it falls in any of these 3 telltale signs.

Where should I outsource my back-office work?

Undoubtedly, one of the strongest contenders in the offshore staffing industry is the Philippines. Dubbed as the ideal destination for companies to outsource, the country is home to numerous foreign offshoring companies.

Why the Philippines? 

Labour costs are cheaper. The standard of living in the Philippines is visibly cheaper than its neighbouring countries in Asia. Lower living costs means lower wages.

English proficiency. Most Filipinos are proficient in the language as it is strictly taught in schools and mostly utilised by the media. It is also the reason why they can confidently converse using the language.

Cultural adaptability. Influences of the past colonisers in the country have been a part of its culture from then up until now. That’s why Philippine history has a rich cultural diversity and can easily adapt to any culture.

I’m interested, how do I start outsourcing?

Before outrightly coming into a final decision, here are a few things that you should consider in choosing your outsourcing partner:

Company background
Employee retention
Certified outsourcing partner
Visit the location/office

If you’re considering to outsource in the Philippines, you should check out Dynamic Business Outsourcing Solutions (DBOS) – one of the fastest-growing Australian-owned offshore staffing company in the country. Contact us today and get a free consultation with our very own CEO/Founder!