Back office: what it is, who needs it
Posted: Sun Dec 22, 2024 7:24 am
What are we talking about? A back office is a division of a company that does not directly contact clients. For different areas of business, its employees may be assigned different functions, such as bookkeeping, preparation of reporting documentation, and IT support.
Why is it needed? Not every business needs to take individual business processes outside the scope of the main office. As a rule, such a need is felt by medium and large companies that need to improve their image, preserve commercial secrets, and reduce costs.
In this article:
What is a back office in simple words
When a company needs a back office
Back Office Creation Stages
Organizational structure of the canada mobile number back office using the example of an online store
Step-by-step transition of the back office to remote work
Back Office Frequently Asked Questions
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What is a back office in simple words
A back office is a business unit that includes administrative support and assistance services. Back office functions can vary, including financial settlements, clearing procedures, reporting, compliance with regulatory standards, accounting, and the provision of information technology services.
The concept of a "back office" arose from the structure of old office buildings, where customer-facing employees were located in the front and those not involved in direct customer service were located in the back.
What is a back office in simple words
Source: shutterstock.com
The back office can be considered as a key part of the organization, responsible for performing all the administrative functions necessary for the efficient running of the business. Despite their invisible presence, back office employees perform integral functions that bring great benefits to the company.
Back office positions often include the Operations section and play a critical role in ensuring that the front office works effectively with clients. It can be thought of as a place where work does not always directly generate income.
Today, many back office jobs are located far from a company's headquarters, often in cities with affordable office space, low labor costs, and large labor pools.
To reduce costs, many organizations have decided to outsource their operational tasks or move them overseas to reduce costs. With the use of modern technology, companies have begun to practice remote work, where employees can work without leaving their homes. This approach helps to reduce rental costs and improve operational efficiency. Remote hiring of operational staff gives organizations the opportunity to gain access to highly qualified specialists in various fields and attract a diverse pool of candidates.
Read also!
"9 Types of Customer Loyalty Programs"
Read more
When a company needs a back office
Most often, the back office is allocated to:
Increase the attractiveness of the company
This practice involves renting an expensive office in a prestigious area for the company's front office, where employees interact with clients and partners work. This move helps to improve the organization's reputation in the eyes of partners and contractors. At the same time, back office employees can remain in the same premises, which may look less presentable.
Optimize costs
This goal coincides with the increase in the attractiveness of a company when it has an office for key meetings and negotiations, as well as a separate room for day-to-day work. Moreover, some back-office employees can be transferred to remote work from home, which will save extra money on rent.
Find qualified workers
Finding them can be a problem for businesses in small towns due to the limited number of specialists in a particular field. One solution is to establish a branch in a neighboring region and attract personnel from there.
Why is it needed? Not every business needs to take individual business processes outside the scope of the main office. As a rule, such a need is felt by medium and large companies that need to improve their image, preserve commercial secrets, and reduce costs.
In this article:
What is a back office in simple words
When a company needs a back office
Back Office Creation Stages
Organizational structure of the canada mobile number back office using the example of an online store
Step-by-step transition of the back office to remote work
Back Office Frequently Asked Questions
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What is a back office in simple words
A back office is a business unit that includes administrative support and assistance services. Back office functions can vary, including financial settlements, clearing procedures, reporting, compliance with regulatory standards, accounting, and the provision of information technology services.
The concept of a "back office" arose from the structure of old office buildings, where customer-facing employees were located in the front and those not involved in direct customer service were located in the back.
What is a back office in simple words
Source: shutterstock.com
The back office can be considered as a key part of the organization, responsible for performing all the administrative functions necessary for the efficient running of the business. Despite their invisible presence, back office employees perform integral functions that bring great benefits to the company.
Back office positions often include the Operations section and play a critical role in ensuring that the front office works effectively with clients. It can be thought of as a place where work does not always directly generate income.
Today, many back office jobs are located far from a company's headquarters, often in cities with affordable office space, low labor costs, and large labor pools.
To reduce costs, many organizations have decided to outsource their operational tasks or move them overseas to reduce costs. With the use of modern technology, companies have begun to practice remote work, where employees can work without leaving their homes. This approach helps to reduce rental costs and improve operational efficiency. Remote hiring of operational staff gives organizations the opportunity to gain access to highly qualified specialists in various fields and attract a diverse pool of candidates.
Read also!
"9 Types of Customer Loyalty Programs"
Read more
When a company needs a back office
Most often, the back office is allocated to:
Increase the attractiveness of the company
This practice involves renting an expensive office in a prestigious area for the company's front office, where employees interact with clients and partners work. This move helps to improve the organization's reputation in the eyes of partners and contractors. At the same time, back office employees can remain in the same premises, which may look less presentable.
Optimize costs
This goal coincides with the increase in the attractiveness of a company when it has an office for key meetings and negotiations, as well as a separate room for day-to-day work. Moreover, some back-office employees can be transferred to remote work from home, which will save extra money on rent.
Find qualified workers
Finding them can be a problem for businesses in small towns due to the limited number of specialists in a particular field. One solution is to establish a branch in a neighboring region and attract personnel from there.