Outsourcing is one of the principal sectors in the present-day international business arena. Today, bulk of developing nations depends on the income generated from outsourcing business to boost-up or keep up their economic status. On the other hand, firms in the developed countries find outsourcing as a new gate for profit-making.
One of the major sectors in outsourcing ground is Back Office Services. It is the outsourcing of specific and unimportant office tasks to offshore firms with the signing of lieu or MoU. Although the momentum of growth was slack in the early days, Back Office Outsourcing Services got the momentum from the newly-emerged management trends such as outsourcing of less important tasks in the organisations.
Back office services can be divided according to the fields of services. Some of the most-outsourced back office services include financial and accounting services, bookkeeping services, customer care and support, call centre, human resources, pay-roll, purchase bills, transcription, etc. The fields of services covered in Back Office Operations are expanding because of the increasing responsibilities of the organisations and equally demanding back office support.
Back Office service outsourcing has quite a few advantages. These advantages make it relevant in the outsourcing business sector.
• Cost Effectiveness
• Time Effectiveness
• Innovation in Processing
Outsourcing of back office operations helps in reducing the working cost of organisations. Offshore outsourcing helps to achieve high competence at reasonable and cost effective prices. The less cost of operations is because of the low-cost manpower and highly efficient services offered by the outsourcing companies. For example, US companies outsource their back office operations to India, because of the availability of large number manpower and lesser labour costs in India.
When a third party firm executes some chores for a Company, then the executives in the company, which is receiving the service, can save more time for their core business activities. For any company, core business activities are important than non-essential business tasks. The outsourcing of less important activities helps the executives to separate more time for their core business activities.
Innovation in Processing
Innovation is the key for improving the business processing methods. The offshore outsourcing companies have creative talent pools, which help them device smart and time saving methods for back office operations. These innovative methods speed up the operations and make operating processes simpler.
Automation is the process of automating certain operating methods with the help of software tools. The technical expertise of outsourcing companies enables them to develop software tools for the complete automation of certain processes. Automation helps to reduce the manpower and hence reduce the labour costs.
Back office processing services are necessary for any business establishment. These services are obtainable at cheaper costs and superior delivery from offshore concerns. Increasing services is the reason for more companies entering into outsourcing business. Each personnel in these firms are well-trained to provide high quality services. The growing popularity for India BPO services is a good example for their expertise and high-flying service efficiency. Indeed, outsourcing of back office operations is profitable for all companies in the look out for higher net profit.
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