5 Back-Office Support Services That Will Revolutionize Your Business in 2021 and Beyond

Many businesses scrambled to transition to remote work and expand digital transformation initiatives in response to COVID-19. The drastic move has taken their bottom lines by surprise. On the other hand, those companies that transitioned with better ease are the ones that have been outsourcing back-office support and various functions even before the pandemic. 

The good news is that opportunity is available for your business anytime you are willing to integrate the arrangement into your organization.

Back-office support roles are performed without having to face customers. While these office support services occur behind the scenes, they play an integral role in the entire customer experience. When a company has efficient back-office support solutions, frontline teams can smoothly deliver client-facing functions and take care of other business aspects. 

In this article, we will analyze five of the most commonly outsourced back-office support services. Discover why implementing these back-office support solutions is one of the best strategies to propel your business growth this 2021.

The business landscape was already on the way to becoming fully digital even before COVID-19 prompted the digital transformation race. Now that everyone has seen the benefits of integrating digital technology in various aspects of business, we can expect an extremely competitive digitization era. 

Every company, big or small, will need digital capabilities to maintain a competitive advantage. Information technology is expected to be integrated into nearly all strategic decisions of businesses, big and small. This part is where IT back-office support comes in.

IT support services cover various functions spanning from cybersecurity and data backup to application development and cloud management. Depending on your organization’s needs and goals, you can outsource specific or all IT-related functions.

• Address the skill shortage.

A survey conducted by McKinsey found that about 70% of organizations reported critical gaps in IT skills. Another study forecasted that by 2023, companies worldwide would experience a shortage of over 85 million tech professionals. Outsourcing IT back-office support services to a BPO with access to global talents will help you fill the skill gap efficiently.

• Enhance security.

As the digital transformation continues to accelerate, cyber threats catch up almost simultaneously. IT outsourcing contractors have risk management strategies in place as part of their service offerings. These can be customized according to your organization’s needs.

• Get instant access to new technology and infrastructure.

Acquiring or developing new technology is costly. It also takes time and expertise to incorporate new technology into your system. Adept with the emerging trends in the industry, IT outsourcing providers invest in state-of-the-art infrastructures that they usually offer as part of their IT and back-office support outsourcing packages.

• Increase customer satisfaction.

From allowing businesses access to valuable customer insights to facilitating seamless omnichannel support, technology significantly brings impact to the customer experience. One study showed that 70% of businesses with digital transformation initiatives recorded an increase in customer satisfaction.

Over the last decade, the amount of created, captured, copied, and consumed data globally increased from 1.2 trillion gigabytes to 59 trillion gigabytes. It is safe to infer that the competition will continue to be driven by data. 

But for most startups (and even large companies), having employees solely focused on data entry tasks could prove costly. This is why data entry is among the most commonly outsourced back-office support services. 

Apart from cost-saving benefits, companies outsource data entry and related office support services to increase productivity, enhance focus on core strengths, and gain the expertise that they lack in-house.

• Transcription 
• Product data entry
• Document management 
• Document preparation and sorting
• Data conversion 
• Forms processing

Managing payroll is a time-consuming process, no matter the size of the organization. An HR professional spends an average of 20% of their time processing compensation, benefits, and other administrative tasks just for about 40 people. Now, imagine if you have hundreds of employees? 

Leaving payroll tasks for your internal HR team to multi-task is not only time-consuming but also risky. Payroll is a crucial function that requires 100% accuracy. Tax compliance, for instance, needs to be error-free to avoid costly penalties and other repercussions. Minimize the risk of encountering such situations by outsourcing payroll management to a reliable contractor who offers back-office services.

Scope

Your arrangement with your outsourced payroll office support partner may vary depending on your business. Usually, your back-office support partner customizes the process, scope of work, etc., according to your company’s size, goals, and needs. If the back-office support company of your choice offers end-to-end solutions, they may cover staffing and training as well. 

System

Once you’ve chosen a back-office support services contractor, the next step is to create an account. Payroll outsourcing works through a mutually accessible web-based system or software that logs, calculates, and reports employee attendance, leave accruals, and other related information. 

Accessing the information mentioned above allows your back-office support partner to manage the standard processes involved in payroll, from tax compliance to payroll fund disbursement. 

Fees

The rates for outsourcing back office as a service to support your internal payroll team are highly customizable. The usual determining factors are the headcount of employees and the kind of services acquired. Other back-office support services providers offer flat fees as well.

Human resource management involves an enormous administrative workload. According to a study conducted by Topia, about 40 million hours are wasted on completing HR-related tasks. In some organizations, HR managers even spend more time doing menial tasks instead of strategic functions. 

Since the HR  department plays a crucial role in any business, it is imperative to ensure that it operates at an optimum level. The most cost-efficient way to achieve this is to engage a back-office support provider that specializes in diverse HR functions, including:

• Payroll and benefits administration
• Policy compliance management
• Recruitment  
• Performance management
• Onboarding
• Training and development

• Promote a positive company culture.

As many emerging trends continue to make the labor market more competitive, businesses must set themselves apart by being a great company to work in. Outsourcing HR office support services helps your in-house team achieve work-life balance and enhance their well-being, resulting in increased engagement and retention.

•  Focus on core operations.

Taking time and attention away from your core business will prevent you from getting closer to your business goals. The best approach is to delegate HR back-office support services tasks to professionals specializing in HR-related matters. Back-office support also saves you financial resources that you can allocate in enhancing or expanding your expertise. 

• Mitigate risks.

Human resource operations are governed by various government regulations, making them prone to fines and lawsuits. Now that the workplace has become global, HR management has turned more complex. Outsourcing HR office support services to a third-party organization allows you to share the inherent risks of running a human resources department with your contractor.

Streamlining business practices to achieve optimal efficiency is the primary role of operations management. Back-office support providers employ business models tried and proven to deliver services and results in the most optimal way possible, regardless of the nature of your business. This approach makes it possible to outsource high-level functions, such as operational management. Some of the functions you may channel to a back-office support service provider are: 

• Project management 
• Product design and development
• Quality control process optimization
• Delivery and inventory management

• Converts fixed costs into variable costs  

If your organization’s revenue is highly dependent on the volume of transactions you receive, hiring an outsourcing team for back-office support is a great way to reduce expenses. You can scale staffing and other contracted services as needed.

• Minimizes disruptions

Most companies that offer back office as a service are based outside the country where the client company is located. Because of geographical differences, the outsourcing client may enjoy operational continuity even if they have hurricanes or other natural calamities in their area. 

• Increases efficiency

In today’s hyper-competitive business world, speed is a great advantage. Delegating operation management tasks to a reliable back-office support solutions company allows you to ensure smooth business operation beyond business hours, even 24/7.

Another byproduct of the digitally transformed time we live in is unlimited access to information. Take a look at the following global internet usage statistics compiled by Obelo: 

• There are 4.66 billion active internet users worldwide as of 2021.
• 65.6% of the global population has access to the internet.
• In the U.S. alone, 8 out of 10 adults go online daily.

These numbers also represent the risk to the reputation of companies with online properties. Every internet user that comes across your website or other online platforms can leave a derogatory comment and badly affect your brand’s image. This is the primary reason why many companies strengthen their content moderation efforts by outsourcing the task to a back office support provider.

• Protect your online properties 24/7.

When it comes to catching potentially harmful content, speed is the main factor. A single click is all it takes for harmful content to go viral and forever damage your reputation. Outsourcing content moderation to an offshore back-office services provider allows you to guard your reputation day and night.

• Gain insights into your customers’ view of your brand.

User-generated content helps your marketing team curate data-driven and personalized strategies to generate and even convert leads. This approach allows you to invest time and resources in high results-yielding marketing efforts.

• Maximize the benefits of user-generated content. 

Not all user-generated content is harmful. A lot may be beneficial to your business. Suppose your outsourced back-office support team understands how to turn user-generated content into a powerful marketing tool. In that case, your brand can enjoy a strong online presence and increased engagement.

Make SuperStaff BPO your partner in running a smooth back office. As a service provider, we offer end-to-end solutions to ensure faster, efficient and cost-effective delivery of a wide range of back-office support functions. Schedule a consultation today!