The 5 Biggest Benefits of Back Office Outsourcing


If you’re a business owner, you’re likely familiar with the term “back-office operations.” These essential but often tedious functions, like HR, accounting, and IT support, keep your business running smoothly behind the scenes. Back-office outsourcing involves hiring third-party service providers to handle these functions, so you don’t need to do so in-house.

Outsourced providers trim the fat off a company’s daily tasks, letting you focus on the meat—growth and profitability. Companies outsource their back-office operations to access specialized expertise, reduce costs, and focus on core business functions.

Top 5 Benefits of Back Office Outsourcing

a  business woman wearing a headphones and smiling at a computer talking to a back office outsourcing team

Here’s an in-depth look at all the benefits you receive when outsourcing your back-office operations.

1. Access to expertise

Building a skillset for technical back-office tasks often requires significant investment in time and resources. Developing proficiency in programming languages, accounting practices, and recruitment strategies can take years of dedication. Outsourcing these tasks gives you access to teams of professionals with the specialized skillset you need.

For example, if you need to develop your business’s internal and customer-facing digital systems,  you can outsource software developers to create and run your websites and apps.

2. Focus on core business functions

Running a business can be overwhelming with a never-ending list of back-office tasks that seem to have little to do with your main business goals.

Outsourcing these tasks to third-party service providers is a smart way to free up time and resources, allowing you to concentrate on your core business functions. For example, outsourced back-office talent can handle data entry, marketing, HR administration, and other specialized tasks.

3. Reduced costs

Managing employee-related expenses can be a significant burden on your finances. Hiring employees incurs costs such as recruitment, training, benefits, and salaries. For small and medium-sized businesses, in-house teams for HR, IT, accounting, and marketing can be costly.

Instead, you can outsource some or all these functions to save yourself from these overhead costs.

4. Scalability

Expanding your business can be challenging, particularly when you encounter difficulties accessing new markets. Outsourcing can help. Besides allowing you to focus on your core competencies, you can also select a service provider with local talent. They understand the situation in the new market you’re trying to enter.

In other words, your outsourced workers can guide you as you penetrate and navigate the state or country you’re trying to access.

5. Improved risk management

If your outsourced third-party service is also an employer of record (EOR), they take on all the legal risks. This protection ensures compliance regarding recruiting, HR functions, and employee termination. They’re experts in local labor laws and can help you access talent without worrying about the new legal landscape.

Say Goodbye to Mundane Tasks

a man wearing white long sleeves sitting at a desk with his hands behind his head taking a rest

Back-office outsourcing removes the burden of mundane but necessary tasks, giving businesses the breathing room, resources, and time to focus on more critical activities. And most big companies agree, with 92% of Forbes’ G2000 companies outsourcing to stay competitive.

Frequently Asked Questions (FAQs)

Q1: What Factors Should I Consider When Evaluating EOR Companies?

When assessing EOR companies for global expansion, consider factors such as their track record, international compliance expertise, knowledge of the target country, pricing transparency, operational locations, service offerings, and the distinction between EOR and BPO services.

Q2: How Can I Ensure Compliance with Local Labor Laws When Expanding Internationally?

Expanding internationally comes with various labor law challenges. To ensure compliance, partnering with an EOR company with expertise in the specific country’s labor laws is essential. They handle legal and administrative tasks, ensuring your international hires meet local labor requirements.

Q3: What Are the Benefits of Choosing an EOR Company with Global Coverage?

EOR companies with global coverage simplify international hiring by providing a seamless experience. They have a presence in multiple countries, allowing you to access a diverse talent pool while ensuring compliance with local regulations.

Q4: How Do EOR Companies Balance Automation and Human Expertise in Their Services?

The right EOR partner strikes a balance between automation and human expertise. They leverage automation for efficiency but also offer personalized support to address unique needs. This balance ensures a smooth hiring process while maintaining a human touch.

Q5: What Are the Key Considerations for Selecting an EOR Partner in the Philippines?

The Philippines is a popular destination for EOR services due to its skilled workforce and cost-effectiveness. When choosing an EOR partner in the Philippines, prioritize factors like reputation, worldwide coverage, automation capabilities, and their ability to adapt to changing requirements.

If you’re curious about the process and want to learn more, check out our frequently asked questions section or our employer of record guide. One CoreDev IT is an offshore EOR company that provides top-tier talent for your back-office needs. Contact us today!

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