The notion of having an outsourced back office in your business might easily connote less feelings of internal transparency and the need to skirt stringent regulations onshore. Notions of data privacy, lax regulations, tax minimization strategies and labour law deviancy may naturally evoke. Nonetheless, these are merely misconceptions because an back office operations are incredibly integral to a company’s business sustainability and selecting the right outsourced back office operations provider is very vital to ensuring long term sustainability.
Historically, most businesses used to divide their offices in different sections: One section for employees that deal with the public/front line consumers, and another section for employees responsible for providing support functions but don’t necessarily need to interact with the public. Over time, the terminology ‘’back office’’ has now evolved to connote more specialized business functions which are run solely by human agents, autonomously by AI agents in the cloud or a consortium between both parties.
When we also talk about back office functions, one can also imply the operations management or administrative support that a business provides to staff of other companies and affiliated enterprises as a whole. Let’s take this scenario; for instance, a business that offers expensive, encrypted gadgets to employees for work purposes such as phones and computers will definitely need reliable, around the clock IT support for these devices. On the other hand, companies that may offer insurance services for these devices may need to minimize risk and maintain compliance.