Why Do I Need Back Office Outsourcing?
If you’re a business owner or manager, you know that there are countless tasks to be handled on a daily basis. While these tasks need to be completed in order to keep your company running smoothly, some of the workload isn’t directly related to your core competencies, products, or services.
These tasks are necessary, but they’re not necessarily what you’re passionate about. That’s where back office outsourcing comes in handy. With a third-party provider, you can save time, money, and resources to focus on what you do best.
In this blog, we’ll explore the benefits of back office outsourcing and provide some tips on how to get started.
What Is Back Office Outsourcing?
Simply put, back office outsourcing refers to the practice of partnering with a third-party company to handle your non-core business functions. These functions, also known as “back office” tasks, include work such as:
- Accounting
- Human resources
- Customer service
- IT support
- Claims Support
- Telemarketing
- Software Development
While these tasks are important to the overall functioning of a business, they’re not directly related to the production or sale of the company’s products or services. Because of this, many organizations find it beneficial to supplement this workload.
What Are the Benefits of Outsourcing My Back Office Functions?
By supplementing non-core business functions, your company is able to reap several competitive advantages, such as:
- Increased Cost Savings: One key reason companies choose to outsource their BPO is to save money on wages and benefits. These costs add up, combine this with the capital associated with hiring and training in-house staff, and you put a lot of stress on your bottom line. Outsourcing these tasks to a third-party provider allows companies to take advantage of economies of scale and obtain specialized service at a lower cost.
- Access to Specialized Expertise: Outsourced office services enable businesses to take advantage of global economies and specialized expertise they may not have in-house. In some cases, third-party BPO providers may be able to handle back office tasks more efficiently due to their years of experience and knowledge of the industry.
- First Access to New Tech and Tools: Most high-quality back office outsourcing providers leverage emerging developments to stay competitive, meaning you’ll have access to new technologies and tools that your business may not have been able to afford or implement on its own.
- Increased Flexibility and Scalability: Outsourcing BPO can provide businesses with increased flexibility to scale departments up or down as needed.
- Improved Customer Satisfaction: Lending a helpful hand is essential throughout the entire customer experience, and a well-run BPO operation should improve customer satisfaction by providing timely, helpful, and accurate support.
- Reduce Risk and Bolster Compliance Efforts: With back office outsourcing, your business can transfer the risk associated with non-core business functions to your BPO provider. Companies with an emphasis in tech support have the experience and expertise required to comply with cybersecurity regulations and laws, which can help your businesses avoid costly compliance issues.
Back office business process outsourcing can also help your company stay competitive in its industry. By outsourcing non-essential tasks, you can focus on what matters most—your core competencies. This helps your business stay ahead of the curve in terms of product and service innovation, which is especially important for small and medium-sized businesses who might not have the resources to hire and train in-house staff.
“Nearshore” vs. “Offshore” BPO, What’s Best for Me?
If you’ve started searching for a back office outsourcing partner, chances are you’ve seen both offshore and nearshoring companies. If these phrases seem confusing, fear not, there’s a simple distinction.
Offshore outsourcing is the process of hiring support staff based out of a country with a considerable time difference from your own. While nearshoring companies are also based in a foreign country, there won’t be a huge time zone difference, as these services usually involve a neighboring country. For example, a US-based company that outsources its tasks to Mexico would be working with a “nearshore” provider.
If your business chooses to take its outsourcing overseas, be cautious. You might be met with barriers that complicate the ease of communication on projects, damaging your customer experience, and ultimately—profits. That’s why proximity to your client base is a substantial benefit to nearshore back office outsourcing providers.
Nearshore Back Office Outsourcing: It’s Closer Than You Think
Need a surefire way to grow departments, streamline business operations, and support back office tasks? As a nearshore provider, GGA can do it all without compromising quality or visibility. Based in Tijuana, Mexico, our office sits 15 minutes south of San Diego. English is the first language for over 80% of our employees, and the majority of our agents attended universities in the United States. Even better, GGA’s entire leadership team has experience holding executive-level positions for a variety of U.S.-based corporations.
Back office outsourcing providers should share your passion for cost savings and customer service, and that’s exactly what we do at GGA. Get in touch with our expert team or schedule a free consultation to learn more.
