The Positves and Negatives of Back Office Outsourcing


In today’s commercial marketplace along with the present economic climate there exists a genuine drive by company owners to reduce expenditures and improve profit margins. Several discover freelancing as a way to accomplish. Back office functions of organisations genuinely lend themselves readily to being transferred to specialised businesses. Should it seriously take people on site to manage payroll, this is often just one element that many organisations have already transferred out effectively, it is actually natural consequently that additional back office processes come under analysis with a view to outsourcing to specialist firms.

Exactly why is outsourcing a good idea? Should I not merely employ someone for all of the jobs that want carrying out? The impetus for using an outsourcing company is a powerful one as featured here.

Staff Expenses

Firstly having additional employees is a pain, pure and straightforward it’s not great, let’s be realistic, with sick pay, holiday pay, pensions contributions, and NI obligations its a pain and most certainly not a good investment, shifting the activities to an outsourcing business eliminates all those hassles, the outsourcing company takes on the many complications and expenses of having employees helping to make workforce absence worries a subject put to rest.


The capacity to understand what something will cost for a fixed period is desirable to a lot of small business owners in conjunction with the fact that outsourcing can actually cut costs for many companies it becomes an interesting option when compared with the costs of having workers.


For the majority of companies their industry is just not about accounts, human resources, IT or any amount of back office functions, to use outside agencies for payroll enables the company to focus on the actual central product or service. Having the entire back office outsourced including payroll and invoicing allows everyone on the workforce pay attention to making the business more profitable.

Service Quality

This is often an area of some difference between industry professionals and business owners; my own, personal perspective is that making use of an expert, focused company supplies a better service quality than could be given by internal teams. As the outsource service provider is going to be completely focused on that particular task it seems reasonable to think that they can offer a professional quality service. As mentioned a few differ, they feel that internal people know the eccentricities of the firm and know the individuals active in the business providing them with an exclusive insight to providing back office support. In any event, this is usually a judgement call but it is not likely to adversely have an effect on quality.


There are concerns that the outsourcing provider might not have your best procedures with regard to security of information, this can be very easily overcome by being choosy and completing your own due homework to find a supplier. Try not to be lured by really low-priced fees from overseas if you are based in the united kingdom and wish your payroll outsourced it will be sensible to find a UK payroll outsourcing company that will comprehend the regional setting, regulations and traditions.

The Experience

You might not always be familiar with the standard of the staff employed by the outsourcing company, they may well have a higher turnover of employees which might have a knock on impact on just how effectively they deal with your account. Once again becoming selective and choosing a local provider with robust systems in place ought to overcome this effortlessly, an excellent system at the outsourcer will cancel out these concerns,

There are huge benefits to be gained by taking the steps to contract out your back office processes, but like every crucial service it is extremely important to do your research and select a company carefully, they should be specialists and recognised within their industry and have a suitable Service Level Agreement for your organisation. Remember your chosen outsource company will become your partner, you have to be assured in their capability to supply you a service and their efficiency, loyalty and stability. If you do this you will have a extended, productive and value for money Back Office.

Have I missed any pro’s or Con’s of outsourcing, Join the conversation here and let me know what you think especially from the point of view of helping smaller businesses approaching an outsourcing choice.