Back-Office Outsourcing: How to Remain on Top of a Competitive Marketplace
By Justine Gado | Feb 10, 2020
When a company wants to stay on top or improve their competitive position in a highly competitive market, they typically look to doing something internally to transform their position whether it’s learning a new technology, developing an innovative process, or even adopt a new business model.
These traditional strategies for enhancing competitiveness are sound but not the only option. More and more organisations turn to outsourcing to improve the competitive landscape, reposition their companies, or restore how they do business.
Thus, small and medium-sized enterprises (SMEs) are trying to find the most suitable offshore back-office provider that will help them achieve success.
With all the tasks available for outsourcing, and a lot of choices, finding the most equipped provider for your service is not as easy as it sounds. So, to keep up with the competition, most importantly with the industry giants, outsourcing providers have become very aggressive.
The demand for back-office outsourcing services
On a recent study, it is said that the outsourcing market is expected to see an annual growth rate of 7.4% in the next 6 years. Partially, this is because businesses are looking at becoming more global, complex, and digital to keep up with the trend. So, the initial step is to adopt the latest developments and work on better strategies to properly outsource.
Along with the demand for call centre agents, other popular services today include back-office outsourcing services. Based on the latest data, 74% of companies outsource IT-related services, 52% on HR functions, 43% procurement, and 39% on financial services.
But first, how well do we know back-office outsourcing?
What is back-office outsourcing?
Back-office outsourcing is the process of delegating non-customer facing operations to a third-party supplier. The most common back-office services outsourced by companies are administrative tasks that require a certain level of skill.
Most startup entrepreneurs venture in fields that they are good at. However, to make the business running, there are other positions that must be occupied too. Some of which include; HR, payroll, accounting, marketing, and other support tasks.
Some companies try to do these tasks themselves but eventually didn’t get the results that they wanted. Most of the time, they ended using up all their time and fail in focusing on their core competency.
Why do businesses choose to outsource?
Both small and big companies have been outsourcing for a long time. Their number one reason remains to be for cost-savings. But, there are a lot more reasons to consider aside it. With outsourcing, businesses are not only expected to save a huge heap of money but also gain more time to focus on their main goal. Other entrepreneurs also take this time to make sure that they use their free hand in creating better strategies to expand their businesses.
Most of the time, there are telltale signs that prompt you to outsource, especially when you need it most, watch out for those.
Given the overwhelming advantages of outsourcing, back-office outsourcing is becoming increasingly strategic and even a game-changer.
Back-office outsourcing is changing how business is done. It is a powerful way to improve business focus, achieve better resource utilisation and allows the business to gain a competitive edge in the industry.
Now, we here at DBOS believes that if it is not your cream of the crop, then you should delegate it to the experts. And as an outsourcing company in the Philippines that holds a reputation for providing the best services to all our clients, we make sure to pick only the best talents. Our main goal, to help our clients grow their businesses while saving up to 70% on their labour costs.
Want to know more? Contact DBOS today and get a free consultation with our CEO/Founder.