The best way to answer this question is to address the question: What is the “back office.” The back office is considered to be where “tasks dedicated to running the company itself take place.” Or functions that are essential to a business, but rarely interact with the businesses customers. So, sales, customer service associates, service technicians, etc., would be considered to be “front office.”
Detailed Definition of Back Office Support Services
Most back office support services follow pretty conventional standards and practices and are generally the same across different businesses, even different industries. Even though there are slight variations, accounting practices, human resource functions (hiring, releasing, managing benefits, performance evaluation, etc.), and information technology practices, are fairly consistent and highly skilled individuals in any of these fields could easily adapt to the practices of another company or industry.
As a result, back office support services are good skill sets to target for outsourcing. Why? Because highly skilled individuals such as sales professionals, service technicians, skilled tradesmen and engineers typically have very specific knowledge and skills important for the success of a particular organization which are difficult to outsource. These individuals are critical for bringing in revenue for the company, and as a result, the company sinks considerable time and money into these people through high salaries, health benefit packages, investment plans–such as 401Ks and pension plans–and more in order to keep them happy. Front office personnel are hard to replace, take a long time to train.
Why Outsource Business Services?
Back office support functions can be outsourced to other companies that can provide these resources for less cost to the company that hires them, or can provide individuals with skill sets that a typical small business might lack such as an accountant or bookkeeper, or IT guy to setup new computers and printers and make sure that the network is running smooth. Stop back next month to learn more about the benefits of outsourcing your back-office support services.
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