Do you know that back-office support service is incredibly common? Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) are the most common outsourced services globally. According to Statista, 2023, the BPO outsourcing market is expected to generate US $ 0.35 trillion in revenue! Even small companies are relying on managed services. Clutch has revealed that the average spending of SMBs on outsourcing was $ 198,550 in 2022.
Back–office functions are the backbone of a company. But often, businesses are unable to handle the back-end tasks, and it directly impacts their client-facing revenue generation activities. Increasing operational costs, mismanagement, lack of expertise, and limited access to the latest technology are some bottlenecks companies face while executing their back-office functions.
What are back-office functions?
Back-office is non-client facing administrative activities implemented at the back-end that do not directly generate revenue but are critical to the smooth functioning of an organization. These are essential business functions related to operations. Business activities such as accounting, customer support & service, HR/payroll management, lead generation, inventory management, and IT services are a few prime examples of back-office functions.
Top Benefits of Back-office Support Services
- Lower operational costs: Deloitte has revealed in a survey that the top reason for outsourcing (70%) is cost reduction. The major benefit of outsourcing back office support services is reduced operational costs. Back-office and customer service management companies have a fully functional team with expertise in carrying out different administrative and support services. There are accounting experts, people managing HR/ payroll, experts in managing inventory, logistics, BPO, etc. Business organizations need not build an entire team to handle their routine administrative tasks. They need not invest in setting up an in-house department and incur expenses in hiring and training the staff to handle different functions. They can avoid paying expenses on staffing requirements, training, and other overhead costs, concentrate on revenue generation, and maximize profitability.
- Expertise: According to Clutch, 24% of small businesses outsource to increase their efficiency. Back-office support service companies have the expertise to handle all the administrative tasks and, therefore, ensure perfect and timely execution of the back-end activities. Whether a business needs to outsource HR management, accounting/ bookkeeping, IT services, etc., the managed service provider will allocate resources ( professionals) from the particular field and ensure the services are implemented perfectly. Timely execution of the activities ensures greater efficiency while the business invests a minuscule amount of its time and energy monitoring them.
- Increase in Revenue: One of the significant benefits of outsourcing administrative tasks is that businesses can concentrate on their primary business activities. For instance, a manufacturing company can focus on its core manufacturing activities, or a software development or a logistic company can execute its main business functions without managing the back-office activities. They can streamline their entire back-office functions by incurring a reasonable cost to back-office marketing companies and focus on client-facing revenue generation activities. The back-office companies are responsible for managing the administrative tasks, enabling their clients to maximize revenue and augment growth.
- 24/7 Availability: Today a large number of onshore and offshore companies are offering round-the-clock services to businesses of all sizes from different industry verticals. They have global teams that meet the outsourcing requirements of businesses and provide round-the-clock services. They also offer services to companies operating in different time zones. In a nutshell, back-office marketing services are available 24×7, enabling businesses to generate revenue without directly managing the services. With proactive management of outsourced activities, businesses can expect fast turn-around time and improved efficiency in back-office support
- Advanced Technology: Businesses can reap the benefits of integrating the latest technology and tools that increase efficiency with automation and simultaneously reduce costs. Managed back-office service providers keep pace with the latest market trends, invest in the newest technologies, such as AI and ML, and rely on cloud computing and data science to be ahead of the curve. For instance, they invest in AI-enabled solutions to manage customer support and service and deliver superior customer experiences. Businesses might not be aware of such developments or may not be able to keep pace with the emerging trends. It can be a hurdle in their progress and lower their profits. So it’s best to invest in managed back-office marketing
How to Improve Efficiency in Back-office Functions?
If you are facing issues with your back-office functions, the ideal solution is to rely on an expert company that can provide back office support services. Outsourcing back–office marketing will streamline your back-office functions, lower your operational costs, and let you leverage the expertise of back-office companies. The way forward is outsourcing, as it enables businesses to simplify their back-end activities. Today, a large number of companies are outsourcing back-office functions. By 2026, the global outsourcing industry will be valued at $425.19 billion (Statista). Are you taking note of this crucial trend? Do you want to boost productivity and ensure a smooth workflow with cost-efficiency? Hiring a back-office support service provider should certainly be a priority for your business.
About Markable Solutions
Markable Solutions is a leading B2B marketing that offers back-office functions with flexible payment models. We offer scalable back–office solutions that help companies meet their requirements perfectly. We have dedicated teams that can help you ensure the smooth functioning of your back-office functions and reduce costs. For more information, feel free to visit https://www.markablesolutions.com/. You can contact us here, and our team will be glad to guide you through the process of back-office support and let you know how we are the best partners that will ensure your success with managed support services.