Scalability and Outsourcing Your Back-Office Operations

Published on May 1, 2021 – Posted by: BAIVI Admin

In this data-driven business world where communication moves at lightning speeds, there comes a decision point that every small to medium business owner must face. Should I outsource my back-office operations? The undeniable benefit in outsourcing back-office operations for small to medium sized enterprises and start-ups is the freedom to reallocate resources that would have otherwise been dedicated to the slog of legal, accounting, data processing, purchasing, inventory management, treasury, and payroll tasks. However, this benefit does not come without any risk, but like all risk, it can be curbed. A good business owner should be extra careful when choosing a service provider to outsource to, simply because the quality of the service of the provider’s work is out of your hands.

The question remains: when should I, as a business owner, outsource my back-office operations? We would like to present an answer. What is good about reallocating resources is that it can help you scale your business. Instead of hiring accountants and bookkeepers, you can hire machine operators, additional cooks for restaurants, and all the odds and ends that helps you grow your operations into a much bigger scale. The cost-efficiency of back-office service providers is no myth. BPOs must stay within a competitive price range while offering specialized, expert, and satisfactory services in order to gain a client base and stay on the market. Thus, the solution presents itself: I should, as a business owner, outsource my back-office operations when I am considering scaling my business to a much bigger scale.

An entry in investopedia.com states: “Scalability is a characteristic of an organization, system, model, or function that describes its capability to cope and perform well under an increased or expanding workload or scope… in the corporate environment, a scalable company is one that can maintain or improve profit margins while sales volume increases ”. It is known that when sales improve, so does profit but also demand. The challenge is to meet this demand, and the support needed for this is both in the form of expertise and infrastructure. A good BPO can provide you with both.

BPOs can provide your business with the know-how for tax compliance, BIR reporting, legal compliance, financial analysis, control procedures, accounting software support, and a host of other procedures that undeniably keep your business running.

When looking for a good service provider, take extra notice on the amount of experience a BPO has. Many BPOs who have been on the market for some time will have gained experiences that can back more than a promise of good service. They have proven that their good service can be delivered. Look for service providers who have dealt with different kinds of clients in different industries, so you know that you are paying for an expansive knowledgebase and the industry’s best practices.

You will know if a service provider is a good fit for you if their system aligns with the unique goals of your own organization. Aside from affordable systems and the promise of fast implementation, a good service provider will always effectively communicate with its clients on the nuances of its services and take the effort to build a good long-lasting business relationship.

Whatever is the need of your business, BAIVI Outsourcing offers the service to match it. BAIVI boasts of experienced back-office teams and officers that are focused on seeing the perspective of their clients. Whatever the goal, BAIVI Outsourcing can support. Contact us for a consultation.