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

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

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.

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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