Back-office tasks continue to tax the workloads of U.S. teams in businesses large and small. There is nothing more frustrating than wanting to work on value-added activities while being forced to waste time on admin work. But frustration is just the beginning. The real cost is to the bottom line. According to SSON, Fortune 500 companies waste an estimated $480B due to inefficient back-office processes. What are the advantages of outsourcing your back office support needs?
The reason that many companies overlook back-office inefficiencies is that at first, administrative work may not seem like a lot to handle. As companies scale, however, it can become overwhelming and soon compete as one of the biggest challenges they face. And though ever-present concerns like sales and marketing tend to keep business leaders up at night, often they are spending too much time on the wrong kind of tasks - leaving strategic work undone. The real culprit? Inefficiencies in back-office processes.
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Outsourcing back-office tasks to a reputable Business Process Outsourcing (BPO) provider has long-been the solution to this headache for larger companies. Today, midsize to small companies can take advantage of the benefits of outsourcing as well. Starting off with a team of one or two for accounts payable, for example, can make a huge difference in the time and resources wasted in accounting.
Though the specific back-office needs of each company may vary according to size and industry, there are many general advantages of outsourcing your back-office needs that are common to virtually every sizable company. These include important administrative functions like accounting, data entry, order processing, data collection, market research, and much more.
Here are just some of the top advantages of outsourcing to be gained with BPO fulfillment.
Cutting Costs: One of the Top Reasons to Outsource Back Office
The first -- and maybe most obvious -- advantage to outsourcing your back office is simply improving your bottom line. Developing the infrastructure to manage your back-office needs is expensive, not to mention time-consuming. The cost of maintaining this infrastructure after you develop it can also be very high. When you factor in labor costs, employee turnover, and investment in the newest technology and training, you end up with a large and ever-growing number that can dwarf many of your other business costs.
Outsourcing your back office support is a much more affordable solution. You can utilize an existing, well-maintained infrastructure, along with low labor costs offshore, and end up with a much more affordable option that allows your business to thrive. Think of it as all the benefits of an in-house team without the costs of hiring, training, technology, office overhead, and more.
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Reinvest In Your Business: Go Beyond Cost Savings
It’s not just about cost savings though – the true value of outsourcing lies in the potential of reinvesting your time and budget into strategic priorities. If you were considering scaling your business, outsourcing can lay the financial foundations and offer you the flexibility you need to make it happen. Alternatively, if your team is stretched to the max, and overloaded with transactional work, you can now reinvest their time in projects that should never have even made it to the back burner.
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With the time and budget freed up by outsourcing, you can set your sights towards your business goals and use increased reinvestment to achieve them at whatever pace you want. Many of our clients choose to reinvest their budget into sales and marketing, while allowing their teams to focus on strategy, not busy work. Case-in-point, the well-oiled accounting department is often achieved by outsourcing transactional work such as AP, AR, general accounting and payroll support, allowing team members to quit the never-ending number crunching and get more done.
Gain Quality Back-Office Talent, Dedicated to You - An Advantage of Outsourcing Back Office
Finding people with the skills and experience you need can be tough, especially in a tight labor market, but outsourcing provides top talent for your business without the hassle of hiring. Whether you’re amending an existing team or outsourcing nearly all of your back-office functions, a BPO can hire administrative experts who are skilled at handling a variety of back-office support needs. These experts then undergo regular training in all the latest technology, tools and best practices to ensure that you receive nothing but the highest quality service to keep your company competitive.
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And while the talent market may be lean here in the U.S., the complete opposite is true of top outsourcing destinations like India and the Philippines. There, careers in accounting and other back-office tasks are booming with no signs of slowing down. Plus, working for a U.S.-based BPO is considered one of the most prestigious jobs out there, allowing outsourcing providers to truly pick the cream of the crop when choosing an FTE (full-time employee) for your program.
If you haven't checked out the global talent pool lately, now is a great time to start. What's incredible is that you can get an accountant, for example, with an accounting degree from a top university --and a CPA or MBA to boot -- to fulfill your basic accounting tasks. Closing the books starts to take less and less time, invoices get sent and bills get paid much more efficiently. And the best part? You'll save more than half on salary costs and can start with a team of one.
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Do What You Do Best: Concentrate on Core Competencies
Back office support is vital, but taking the time and effort to build and maintain it yourself often pulls the focus away from the core competencies of your business. It can be frustrating to spend so much time on admin tasks and not on the growth of your business. By placing these crucial but secondary processes in the hands of trusted professionals, you and your team will have more time to concentrate on the most important aspects of your company.
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At Personiv, back-office tasks like accounting, data entry, transaction support and more are what we do and what we have done for over three decades. So we know how to take what you don't have the time for, and make it extraordinary. Let the back office experts do what they do best for you, so you can do what you do best for your customers.
These are just a few of many advantages that can be yours with the right outsourcing partner for back-office support. If you’re looking to compete in a tough market, maintain efficiency, focus on your core business, and save money all at the same time, outsourcing is probably the best solution.