The concept of outsourcing relates to the transfer of your burden of some of the unproductive/time-consuming/specialized works to other agencies/individuals in order to optimize your resources and focus on other areas contributing towards the growth of the organization/business.

So, Outsourcing is about:

  • Transferring specific functions to a third-party provider
  • Delegate non-core tasks
  • Saving on time, cost, and infrastructure
  • Leverage your full potential


Outsourcing requires careful decision-making. This cannot be done in a haphazard manner without proper understanding and planning for it. Following are the important steps in outsourcing:

  • Identify and understand your needs
  • Planning for outsourcing
  • Cost-benefit analysis
  • Taking office management and staff in confidence
  • Understand legal and other implications
  • Implementation and Supervision
  • Monitoring and ReviewHere are the top 5 reasons to outsource back-office processes:


Time and Cost Efficiency

Cost-Effective and better Return on Investment (RoI) – Saving on Infrastructures, space, and cost of hiring personnel, providing them equipment and hardware support

In any office, there are two ways of handling the business – one, to do all the administrative and domain works or, two, to outsource some of the works and focus on specific tasks. Both may have advantages and disadvantages. On one hand one may like to exercise full control over all the operations and functions of the organization, while on the other hand outsourcing may help in getting rid of some of the unproductive tasks or also getting some more specialized works from experts, which could not be affordable for the organization on a regular basis.

By outsourcing, companies can save on time, energy, resources, infrastructure etc. So, one needs to evaluate carefully before taking a decision on whether and how much to outsource.  What are the areas which can be outsourced? Here are some of the generally outsourced functions, in order to save on cost and time:

  • Data Entry
  • Pay Roll
  • IT Support
  • The survey, Research, and Analysis
  • Sales and Marketing
  • Specialized Technical Jobs
  • Training and Capacity Building, etc.

Outsourcing Centre can act as a mirrored office in case of any disaster/emergency – till the situation is back to normal

Depending on the need and scale of operations to be outsourced, the outsourced operations can also serve the purpose of a mirrored office or back-office, which can be used in the event of any crisis and which will also ensure information security and safety of people and assets in case of disasters and emergency.

We are living in an era of uncertainties. Almost the entire world is prone to one or other kinds of natural and human-induced disasters. In such situations, it is advisable to have a mirror office to ensure the safety of your people, assets, and information and above all, to ensure business continuity. While negotiating on outsourcing your operations, this should be kept in mind.

This will lower the risks of financial losses in case of any emergency/disaster. There could be cyber-attacks, floods, earthquakes, etc. and these issues need to be addressed carefully and quickly in order to avoid any data loss.

Uninterrupted Service availability

Uninterrupted service in any organization is the key to success. The need for innovative solutions is greater than ever. This includes being able to provide a continuous flow of functionality. This can be achieved only through specialized outsourcing agencies.  In today’s competitive environment, the customer expects 24/7 services, and this may not be possible and easy for any organization particularly for those handling all their operations on their own.

Availability of multiple talents of different domain expertise

While there is a general understanding that only those tasks are outsourced, which are non-productive, and which create additional time and cost burden on the organization. But there is another dimension of outsourcing.

Almost every organization requires various expertise to run its business. It is not possible and also not cost-effective to hire experts for everything on regular basis. This is not a wise and cost-effective way of doing business. Instead, depending on the need, the organizations may outsource such specialized tasks. This will not only be cost-effective but also the company can avail services of multiple domain expertise.

This helps in access to highly skilled persons, use of most up-to-date technological resources, etc. Areas like research and analysis require highly skilled persons and resources which cannot be hired for a one-time task by any organization. Instead, there are specialized organizations to offer these services, and based on the outcomes, organizations can develop their further strategies.

By Outsourcing back-office functions, management can focus more on its core competencies

Organizations have limited times and resources and demands for engagement are more. In order to lead in this competitive environment, one needs to maintain a balance between the demands of various tasks and their time and resources.

There are certain tasks that directly lead to the enhancement of the performance of an organization while some others are necessary but may not have any direct role in the performance of any organization. Such tasks include accounting, bookkeeping, data entry, etc. These functions may not relate to the core of a business, but they are still very important functions.

Your back-office needs management from professionals but having an in-house team can be a financial burden. If you own or operate a small business, you might choose to outsource these functions to a third-party company. By outsourcing such back-office functions, management will have more time and resources. The biggest benefit of outsourcing any business function is freeing up time and capital. There is no need to pay for a full-time employee or team to run the back-office functions.