As 2023 ends, leaders across all industries are preparing strategies for the coming year’s first quarter. After all, proper planning and preparation are crucial for success in today’s competitive business environment.
Most companies seek innovative ways to improve their customer-facing operations, particularly regarding customer experience. However, many executives may overlook one crucial aspect of business: their back-office functions.
Remember: Your front office may be the public face of your company, but the back office is the spine holding the entire organization in place.
If you neglect your back-office functions when developing your business strategy, inefficiencies, bottlenecks, and delays in these crucial support functions may affect all other departments. For example, improper data entry can lead to mistakes in a customer’s billing information, resulting in frustration, conflict, and, ultimately, client turnover.
To stabilize your back office, outsource administrative and support services to a reliable BPO provider. This article will guide you through the basics of back-office solutions, the latest industry trends to watch out for, and how to find the right partner as you begin your outsourcing journey.
Back to the Basics: What Is Back-Office Outsourcing?
Back-office operations include all your company’s non-client-facing services, including many critical administrative and support roles. Examples of back-office services are accounting, bookkeeping, data entry, and virtual assistant tasks.
Some back-office outsourcing companies may also take on industry-specific functions, such as processing insurance claims, logistics support, dispatching services, legal research, etc.
Why Outsource Back Office Solutions to a BPO
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One of the main benefits of back-office outsourcing is enhanced business focus. Think about it: If your core team is overwhelmed with various tedious and repetitive tasks, they won’t have the time or energy to focus on customer service and other revenue-driving aspects of your company.
By delegating administrative and support tasks to a third-party provider, your employees can focus on their core competencies, avoid fatigue and burnout, and improve overall quality and productivity. At the same time, you can rest assured that qualified professionals handle time-consuming yet essential back-office functions.
Back Office Outsourcing Trends for 2024: What to Watch Out For in the New Year
Now that you understand the advantages of back-office outsourcing, let’s dive into emerging industry trends. Familiarizing yourself with these developments can help you develop your strategy for 2024 and achieve your overall business goals.
Transition to Four-Day Workweek
One of the most significant trends shaping the future of back-office operations is the emergence of the four-day workweek. The concept began making headlines in 2021 when Congressman Mark Takano endorsed the Four-Day Workweek Bill, aiming to reduce the standard 40-hour workweek to 32 hours.
The progressive bill prompted numerous national and global discussions about the changing nature of work and whether a shorter workweek can improve business processes while providing greater employee benefits.Â
Almost three years later, the 32-hour workweek has not become the norm in the United States. However, more companies in the U.S. and across the globe are transitioning to this shorter workweek, using it as a benefit to attract top talent and improve employee retention.
According to a 2023 study, about 20% of U.S. companies have transitioned to the four-day workweek, while 41% say they plan to implement this policy soon. Among the businesses offering shorter workweeks, 84% say they have increased their quality of hires by attracting top performers, and 88% say they’ve improved their profitability.
How Back-Office Outsourcing to the Philippines Can Address the Challenges of the Four-Day Workweek
The push for a shorter workweek offers many advantages for businesses and their employees. However, many executives also worry that a 32-hour week may effectively scale down their operations, with some projects taking longer to finish, less availability for customers during off-hours, and less flexibility to respond to fluctuating demand.
U.S. businesses can reach a more practical compromise by outsourcing services to a BPO in the Philippines. Since outsourcing companies in this country still follow the five-day workweek, your onshore employees can have shorter work hours while your offshore back-office team supports your core operations and ensures all projects are finished on time.
Global Supply Chain Disruptions
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The global supply chain crisis is another trend shaping the future of back-office outsourcing. Since 2021, numerous factors contributed to worldwide supply chain disruptions, including COVID restrictions, geopolitical tensions, record-high inflation, evolving consumer demands, and driver shortages.
By 2023, supply chain problems persisted among U.S. manufacturers. As more customers expected convenient and on-time deliveries, logistics companies struggled to keep up with the rise in online shopping. Reuters reported that skyrocketing shipping costs, material shortages, and hiring challenges were to blame for the continued supply chain crisis in the U.S.
How Outsourced Back-Office Solutions Strengthen Your Supply Chain
As the business world welcomes 2024, industry analysts expect improved conditions for the global supply chain. Still, executives must remain cautious and pay close attention to the still-shifting supply chain environment in the U.S. and worldwide.
Businesses can strengthen their flexibility and resilience in these uncertain times by partnering with a nearshore or offshore outsourcing company. Keeping your core team onshore while delegating back-office tasks to countries beyond your borders can help you manage supply chain risks and more easily scale your operations up or down depending on shifting market conditions.
Widespread Talent Crisis
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Beyond the four-day workweek and global supply chain crisis, another challenge facing today’s businesses is the widespread labor shortages. Hiring problems have persisted worldwide since “The Great Resignation” in 2020.
The good news for employers is that labor force participation rates have increased to 62.8% in November 2023, rebounding from the historic lows of April 2020 (60.1%). However, the bad news is that many companies still have trouble finding qualified candidates to fill their most critical positions.
How Back-Office Outsourcing Reduces the Effects of the Global Labor Crunch
Let’s spotlight the Australian insurance industry. While insurance agents and brokers remain among the most in-demand positions in the country, companies struggle to hire for these particular roles. At the same time, existing employees may be left with higher workloads due to labor shortages.
Many Australian insurance companies choose to outsource back-office functions to lighten the load of their core team. BPO professionals can handle various industry-specific tasks, including insurance claims processing, eligibility verification, endorsements processing, policy issuance, insurance data entry, and more.
Rising Demand for Media and EntertainmentÂ
Much like the insurance industry, media and communications is another sector facing significant challenges. The COVID-19 crisis and the rise of digital technologies have forever changed the entertainment industry as we know it.
According to the Motion Picture Association (MPA), at-home media has been on the rise since the pandemic, with online streaming subscriptions surpassing one billion for the first time in 2020. The home and mobile entertainment market also earned $68.8 billion in the same year.
Keeping Pace With Consumer Demand Through Back-Office Outsourcing
Even though COVID-19 restrictions have been lifted in most parts of the world, at-home entertainment is here to stay. Theaters are rebounding from the effects of the pandemic, but consumers are still choosing to invest in online streaming platforms. Netflix alone increased its subscriber base to 247.2 million in Q4 of 2023.
By partnering with a back-office BPO, media companies can keep pace with the continually rising consumer demand for at-home entertainment. They can handle everything from app-specific IT and technical support to data entry and analysis.
Focus On PayrollÂ
Finally, one back-office function that businesses must not neglect is human resources, particularly payroll. Proper payroll management ensures employees receive their salaries on time and without errors, including compensation bonuses, yearly increases, and other benefits.
With hiring challenges continuing and employee disengagement rising to 18% in 2023 (a 4% increase from 2020), businesses must work hard to foster loyalty and satisfaction among their existing workers. The best way to do this is by investing in outsourced payroll services, motivating employees to do excellent work by giving them what you owe on time, every time.
Rely on SuperStaff for Back-Office Outsourcing Services This 2024
Are you ready to start optimizing your back office? Outsource support functions to the BPO professionals at SuperStaff.
SuperStaff offers a wide range of back-office solutions, from general administrative tasks to more specialized, industry-specific services. Our team is dedicated to strengthening your core operations by ensuring all back-office operations run smoothly and efficiently.
Contact us today to learn more about our outsourcing solutions, and we’ll help you prepare your business strategy for the coming year’s challenges!
