Why Admin and Back Office Work are Better Outsourced
Back office support teams work behind the scenes to ensure company operations run smoothly. They are a major contributor to the company’s success. When you think of businesses you usually think of front-office functions, sales, and customer service teams who face your clients. However back-office work should never be overlooked.
The back office is essential for the business to function. The term “back office” came from early companies set up their offices in such a way that those who interact with customers sat in front. Thus, the back office contained associates who had no interaction with customers such as accountants or clerks.
Neglecting back-office functions could lead to multiple problems down the line. Every department from accounting to human resources and sales all, requires some form of administrative work. However, these tasks usually take up a lot of time and shift the employee’s focus away from more important work.
As back office tasks are non-negotiable, the only options any company has are either to do it in-house or to outsource. In this article, we’ll explain what back office work is and why companies decide to outsource it. To conclude, we will share our best tips on choosing a partner for administrative and back office outsourcing. Let’s jump right in.
What is back office work?
Companies are usually divided into three parts: the front office who handles sales, marketing and customer support, the middle office who handles risk management, and the back office who handles administrative tasks and support. The back office of a company is made up of administration and support personnel who are not client-facing. They are responsible for settlements, record maintenance, clearance, regulatory compliance, IT services and many other important, behind the scenes tasks.
Back office executives provide administrative and managerial support for the staff working in the front office of a company. Even though they don’t directly interact with clients, their presence or absence is always felt by the entire company. Back office executives do not interact directly with clients but work behind the scenes to ensure the smooth running of the company. They perform key administrative duties as well as research, data analysis, and accounting functions.
What is administrative work?
One of the most common types of back office work is administrative work. This deals with various roles that are critical to the business’ development. Some examples include research, data processing, data mining, transcription, proofreading, content development and presentations. All these are essential to the company; however, they are still not core business functions.
They do not vary greatly from one company to another, making them ideal to outsource. Outsource Asia is your partner every step of the way, from identifying specific business needs, to choosing the best service provider, to implementation. Using their experience and expertise they help provide unique, customized back office work and admin services that fit your company and culture.
What are the benefits of outsourcing administrative and back office work?
Outsourcing administrative and back office work reduces expenses
Hiring a new set of department heads, managers, and staff to handle administrative tasks really adds up in terms of cost. When you consider the office resources, employee benefits and training investment needed to maintain a new department, the benefits of an in-house administrative team don’t always justify the expense.
Outsourcing your administrative work with Outsource Asia allows you to get the same work done while spending less. A study by the American human resources management provider ADP, Inc. found that outsourcing various HR tasks instead of handling them in-house reduces cost by 40%. Businesses also have the option to pay per project or only whenever the assistance of the outsource provider is needed. This makes a more flexible and economical option versus an in-house team.
Outsourcing administrative and back office work maximizes the use of your resources
Outsourcing administrative work helps you maximize two of your most important resources – workforce and time. Having an in-house HR team gives your company the benefit of getting to know your company’s one of a kind culture and needs. This could translate to innovative programs and systems that can make your company stand out in the market. However, when the HR team is swamped with repetitive, routine administrative tasks every month, they have less time to focus on their programs and people.
Outsourcing these routine tasks allows your team to make the best use of their time. It allows them to focus on training your staff, motivating your team, and growing your business. Outsource Asia can help you find the best partner that matches your company culture and requirements. Leave the personnel management, filling up forms and compliance research to the experts and focus on what matters.
Outsourcing administrative and back office work gives you professional expertise
When you outsource your administrative functions, you have the benefit of selecting specialists in that particular field. This provides you with several benefits. Hiring a specialist allows you to reach out to an expert whose only job is to advise on these topics. Your specialist partner keeps up to date with government regulations, industry best practices and new innovations in their specific field.
Through Outsource Asia, you gain access to precise, up-to-date information on any topic. It is a better strategy compared to depending on one department head learning a variety of subjects on his or her own.
For example, Outsource Asia can connect you with a partner with experience in benefits administration. This would help you streamline your employee benefits system and improve the overall benefits process. There are many plan options for employee benefits and it can get overwhelming for those who don’t have dedicated experience with it.
Instead of spending extra time studying employee benefits and plans, you could just outsource the entire benefits system to an experienced partner. This would benefit both the management and employees as there would be less confusion and more clarity regarding benefits. Additionally, the in-depth information and expertise about the different benefit options would further train your employees.
Outsourcing administrative and back office work shields liability
Outsourcing administrative work shifts liability from yourself to your outsourced company. A third party’s compliance experts help protect you from unnecessary risks. It adds one more layer of protection as the outsourced partner is a co-employer of your staff. They assume employer responsibilities such as payroll processing or benefits.
As your partner must keep up to date on the laws and policies related to their field, your partner can help protect your company during a lawsuit. The third-party provider can put up a wall between the employee and the people who make decisions regarding them. Having an outsourced company handle certain administrative tasks give you a barrier against lawsuits and fines.
Outsourcing administrative and back office protects employee’s privacy
When it comes to the certain back office or administrative tasks such as personal health benefits or other sensitive topics. Talking about personal benefits can be a sensitive issue for some. Filling up paperwork or processing documents for health benefits could also raise privacy concerns and make some people feel uncomfortable. Outsourcing these to a third party removes the discomfort that an employee may feel if he or she speaks to someone within the same organization.
How do you choose an administrative and back office service provider?
Your partner for administrative work will play a key supporting role in your team. It’s important to invest time and due diligence in seeking your partners in the beginning to ensure a smooth and working relationship down the line. It’s
There are several things to consider when looking for a new finance and accounting partner. It takes some time to find the right partner but once you do, you’ll build a long-term relationship that will save you a lot of time and energy in the long run. On the other hand, making mistakes when choosing your partner could cost you money in penalties and other legal costs. It’s essential to answer the following questions:
What are your goals?
Outsourcing is a long-term partnership. What do you hope to accomplish? Clearly define your goals, requirements, and work to outsource so that you can find the best match. Assess your company’s strengths, weaknesses, opportunities, and threats – then find a partner that compliments you well. This will ensure a well-rounded team and optimize your efficiency and growth.
Outsource Asia can help you do this and more. We are open to consultation to help you assess the kind of partner you need. We’re your resource every step of the way from research to the partnership.
What is your budget?
Budget plays a crucial role in the selection of your outsourcing partner. It’s essential to examine the needs of your business and allocate a budget for the work you plan to outsource. Outsource Asia can help you find a partner to work with at any budget range. With a worldwide team, we’re confident we can connect you with the perfect outsourcing partner.
What is their track record?
Study your potential partner thoroughly before signing any deal. Check their experience in the industry and reach out to references and previous clients. This will help you decide if they can deliver on their promises and if they’re the right partner for you. Finding out about your partner’s existing work will help you set realistic expectations of what they can do for you.
What’s their tech?
Support functions such as back office and administrative work are much easier with great tech. It’s important to check if your partner is up to date with the latest software and infrastructure. Tech access ensures that the provider can provide quick and effective communication. It ensures that the company can execute their services well and provide the best service and value for your money.
Outsource Asia can help you answer all these questions and suggest the best partners for you. You never have to worry about hiring full-time admin staff or having to do it all yourself. Outsource your back office work and administrative services through Outsource Asia today. Outsource Asia provides outsourcing advice through resources and consultation for businesses. We help small to large companies interested in outsourcing – from identifying their specific business needs to choose the most qualified service provider, to implementation.
Outsource Asia helps find the best match between outsourcing services and outsourcing partners. Are you a business owner that wants to find the best outsourcing partner? Or an outsourcing partner that wants to expand your global network of clients? Contact Outsource Asia today!