The term Back-Office is used to refer to functions that aren’t directly facing a customer that are typically low in complexity and highly repeatable transactions.

Back-Office functions can include:

  • Accounting/bookkeeping
  • Payroll
  • Human resources
  • Logistics
  • Procurement
  • Customer administration such as data entry for form approvals

Essentially they are easily repeatable transactions that are typically low in complexity that don’t directly involve the customer.

The back-office functions can be performed in-house either at the same location or in another location altogether.

For example, it’s not uncommon for businesses to have the warehouse or retail store in one location, and their back office in another.

Increasingly, back-office functions are being transitioned to offshore destinations to lower the costs.

Examples of this include global companies processing all invoicing functions to a central location e.g. India or payroll functions to the Philippines.

Back-Office Outsourcing

There is currently a huge growth is outsourcing back-office functions to third-parties.

Unlike traditional outsourcing functions like call centres, as the back-office functions are not customer facing there is less risk associated.

Popular destinations include the Philippines and India that offer significant savings as compared to conducting the same work in Australia.

In addition to the cost savings, outsourcing enables a business to focus on their core business rather than the day-to-day functions which can lead to better business outcomes.

Next steps

If you are looking to outsource some back-office functions and know exactly what you need, take a look through our Business Directory for suppliers or use our free CX Connect service and we’ll provide you with a shortlist of recommended suppliers to save you time, money and stress in finding the right solution for your business.

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