Back office functions support all the main functions of business organizations. They ensure that the organization, on the whole, works seamlessly. Outsourcing is an excellent strategy that optimizes business activities without incurring huge expenditures. Businesses can access the expertise of trained and seasoned professionals at a nominal fee. It helps them focus on mission-critical tasks rather than investing time in ensuring the proper functioning of the back office functions. Outsourcing back office functions is gaining popularity as companies allocate resources to client-facing business functions such as sales and marketing and focus on revenue-generating activities. According to Statista, outsourcing spending will exceed $1.3 trillion, and with this number, one can gauge the wide acceptance of outsourcing across the globe. The market is expected to grow further because organizations realize the importance and value outsourcing brings to their business.
Let’s discuss the top six reasons why companies should focus on outsourcing back-office functions.
Reduce costs: One of the key benefits of outsourcing back office functions is reduced operational costs. Companies can curb the rising operating costs by handing back office activities to experts. They can get assistance from trained and experienced staff. If they don’t outsource, they must set up an in-house department and train the employees in specific services, which increases costs. Deloitte has revealed that 27% of companies implementing RPA (Robotic Process Automation) have achieved 10-20% cost savings. So, cost is a prominent driving factor in outsourcing.
The outsourcing company is responsible for the contingent staff’s training, compensation, and benefits. Outsourcing service providers charge a competitive fee resulting in enormous savings for the business. Companies save labor costs, software expenses, machinery and equipment, and other overhead expenditures.
Competitive edge: Small and medium-sized companies get access to the best minds at a nominal fee. It provides a leveling ground for SMEs to compete because experts oversee their back-office functions. SMEs can benefit from outsourcing services offered by reputed firms and focus on business growth, devise business strategies, and implement them to steer ahead of the competition.
Scalability: The outsourcing process meets the scalability requirements of businesses. They can quickly scale up and down the outsourced staff and pay for the services they use. It provides considerable cost savings, which gives companies a high ROI from their outsourced partnerships.
Efficiency: Outsourcing services help a business get expertise in different functions, increasing efficiency. The outsourced talent is equipped with the requisite skill sets and expertise and it introduces standardization in the processes. It allows enterprises to accelerate their growth and expansion plans as they have access to a large pool of knowledge which helps them propel growth and maximize revenue.
On-demand access: Businesses can connect with experts whenever they have a requirement. Companies can rely on administrative experts who monitor the latest developments. They adopt the best practices and ensure your business complies with the updated rules and regulations. Contractual agreements provide access to a dedicated manager and a team to solve any issues at a competitive fee.
Focus on mission-critical tasks: Many businesses outsource functions such as bookkeeping, accounting, payroll, and human resource management. Companies can focus on promoting growth, lead management and revenue generation and keep the sales funnel flowing with market-qualified leads. It saves them time as the experts handle their back office functions.
The popularity of outsourcing back-office functions
The outsourcing market is growing by leaps and bounds. Several services are most commonly outsourced to save cost and get access to on-demand expertise and other benefits. One of the main reasons for outsourcing is to free up resources and allocate them to core business functions. According to a study by Aptude, the global outsourcing market size reached $92.5 billion before the pandemic. It further says businesses are outsourcing 68% of their workforce requirements.
What are the top services that are outsourced?
- Information technology is continuously evolving and needs a trained workforce to deliver high-quality support. Businesses can rely on agile staff pods and contingent staff to meet the challenges in a dynamic marketplace. Outsourced IT services offer implementation, customization, migration, consulting, and advisory services. They provide robust hardware and support software, and technical assistance on demand.
- Bookkeeping, finance, and accounting are one of the most commonly outsourced activities. Businesses can rely on experts and get 100% compliance with the latest and amended laws.
- Excellent customer service is necessary to retain customers and acquire new ones. Organizations need a support team to provide high-quality customer support. Delivering high-quality customer support and pacifying aggravated customers, offering an enhanced customer experience requires skills and expertise, so customer support is outsourced.
- Businesses have realized the importance of social media and how it can catapult a brand to the next level, so they outsource social media marketing services.Companies choose marketing and B2B marketing companies that have experience in leveraging social media to find leads and get high conversions.
How can Markable Solutions help?
Markable Solutions has a strong expert team offering dedicated back-office support services. We help you with business support, data support, and B2B marketing services. Markable Solutions is a leading B2B marketing company that offers services such as lead management, prospect list development, and allied services. Also, companies rely on us for administrative support, order fulfillment services, transaction processing, and many more services. Markable Solutions is your one-stop destination for all your back-office support services requirements, from catalog management to customer support, research, survey, and many more services.
If you are looking forward to outsourcing back-office support services at a competitive fee, then Markable Solutions will meet your requirements. We have helped many businesses manage various functions and provided them with the expertise they needed to streamline back-office support.