Back office tasks continue to be a burden on the American team in both large and small companies. There is nothing more frustrating than trying to participate in value-added activities and having to spend time managing. But failure is only the beginning. The real value is the net profit. According to SSON, the Fortune 500 company lost $480 billion due to inefficient back-office processes.
The reason many companies ignore administrative inefficiencies is because at first, it seems that there is not much administration. However, as the company expands, it can become unstoppable and soon become one of the biggest problems. While issues like sales and marketing have always bothered business leaders, they often spend too much time on the wrong tasks, making strategic work impossible. The real culprit? The background process is ineffective.
Outsourcing back-office tasks to reputable business process outsourcing (BPO) providers has long been a painful solution for large companies. Today, small and medium-sized businesses can also take advantage of outsourcing. For example, starting with an accounts payable team of one or two people can result in a significant waste of time and resources in accounting.
While each business’s specific back-office needs may differ by size and industry, back-office outsourcing needs have many common benefits that are almost common to all businesses of the same size. These functions include important management functions such as accounting, data entry, order processing, data collection, market research, etc.
These are just some of the biggest outsourcing benefits achieved with BPO.
Cost reduction – one of the main reasons for back-office outsourcing
The first (and perhaps most obvious) benefit of back-office outsourcing is simply an improvement in the bottom line. Developing an infrastructure to manage internal requirements is very expensive, not to mention time. The cost of maintaining the infrastructure once developed, can also be high. When you factor in labor costs, employee turnover, and investment in the latest technology and training, the bottom line will be huge and steadily increasing, potentially disproportionate to many of your other business expenses.
Outsourcing back-office support is a more affordable solution. You can take advantage of the existing, well-maintained infrastructure and lower overseas labor costs, and ultimately get more affordable options to help your business thrive. Think of it as all the benefits of an in-house team without the costs of hiring, training, technology, office overhead, etc.
Reinvest your business: beyond cost savings
However, it is not just about saving costs; The true value of outsourcing is that you can reinvest your time and budget on strategic priorities. Suppose you are thinking of expanding your business. In that case, outsourcing can lay the financial foundation and provide the flexibility you need to achieve that goal. Plus, if your team is struggling and busy, you can now reinvest your time on projects that should never go backward.
By saving time and budget through outsourcing, you can target business goals and use increased reinvestment to achieve them at the rate you want. Many of our clients choose to reinvest their budgets in sales and marketing, allowing their teams to focus on strategy rather than hard work. For example, an economically rich accounting department is typically achieved by outsourcing transactional work like AP, AR, general ledger, and payroll support so team members can ditch the endless work of digital processing and get more work done.
Get quality logistics talents exclusively for you
Finding people with the right skills and experience can be difficult, especially in a tight job market. Still, outsourcing can provide your company with the best talent without the hassle of hiring. Whether you are looking to change an existing team or outsource nearly all back-office functions, BPO can hire management experts who are well versed in the various back-office support requirements. These experts will then receive regular training on the latest technologies, tools, and best practices to ensure that nothing will keep your business competitive more than the highest quality of service.
While the United States’ talent market may be weak, the reverse is true for major outsourcing destinations such as India and the Philippines. There, the accounting profession and other administrative tasks are thriving, and there are no signs that they will slow down. Additionally, BPO jobs in the US are considered one of the most prestigious positions, allowing outsourcing providers to really reap the rewards by selecting FTE for their plan.
If you haven’t checked out the global talent pool lately, now is a good time to start. For example, it’s amazing that you can earn an accounting degree from one of the best universities and earn a Certified Public Accountant (CPA) or MBA degree to complete basic accounting tasks. Less time is required to start ordering, invoice submission is more efficient, and invoice payment efficiency is greatly improved. The best part? You will save more than half of your salary costs, and you can start with the team.
Do your best: focus on the core skills
Administrative support is critical, but your own time and effort to build and maintain it tends to divert focus from core business competencies. It can be frustrating to spend a lot of time on management tasks instead of growing your business. By outsourcing these critical but nonessential processes to trusted professionals, you and your team will have more time to focus on the business’s most important aspects.
These are just a few of the many benefits that can help a back office with the right outsourcing partner. Suppose you want to compete in a tough market, stay efficient, focus on your core business, and save money at the same time. In that case, outsourcing may be the best solution