back office provider

Why Is It Important to Select a Good Back Office Provider?

  • InCorp Editorial Team
  • 11 August 2016
  • 3 minute reading time

How to Select a Good Back Office Provider?

Outsourcing back office services is one of the hottest trends in the global marketplace.

Almost every company has some type of back office activity that have to outsource  to a third party, which ranges from data entry through to payroll, legal services and the management of accounts receivable and payable.  Back office services have essentially extended to virtually any tasks where there is no direct engagement with customers.

Many companies consider back office services more acceptable to outsource than customer-facing activity. The main drivers for outsourcing activities such as accounting services and billing are cost savings and a desire to focus on core business rather than process-oriented tasks that perform equally as well, if not more efficiently, by a third party. As an example, by outsourcing accounting services. Third party experts can optimize the proccess whilst reducing direct and overhead costs. This related to managing an in-house accounting department.  By outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income.

Finding the correct back office provider is extremely important. The partner or provider will essentially be an extension of your own office.

The partner should have extensive experience in the industry and an excellent reputation. Service providers who do not have expertise may not be capable in some services. The services consist of providing a high level of service. And providers that do not have standard processes and procedures in place are more vulnerable to operational risk.

It is important to establish what performance metrics are important for each task you wish to outsource. There should be an open and clear conversation with potential back office partners. Regarding these key performance metrics. Good service providers will engage in a discovery phase and even make recommendations. If they feel the certain automate work will be better or is not suitable for outsourcing.

It is important that there is a dialogue between the back office service provider and the client. This to ensure that the expectations are met on both sides and build the requirements and expectancies at the beginning of the relationship so that nothing left to assumption.

Once the process of selecting a back office provider and upon establishing clear expectations and performance metrics has been completed, outsourcing allows you to focus your time, attention and resources on your company’s core competencies and to spend time on setting new goals and ways to achieve them.

At our international partner Biz Latin Hub ( their Back Office Services team is dedicated to assisting clients in navigating their way through the complexities of the Latin American business environment. With offices in Colombia, Peru, Mexico, Chile, Argentina, and Panama they have an unparalleled reach across the region and they are well positioned to help companies to enter and operate within the Latin America, through providing multi-lingual back office services (accounting outsourcing, legal, recruitment and marketing services) that are Reliable, Economic and Tailored to meet clients’ needs.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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