The term ‘Back Office’ apparently came into being based on the building layout of companies. Companies’ front office would contain the sales and other customer facing staff, where as, the back office would consist of those involved in manufacturing, producing or developing the products or involved in administration but without being seen by customers. Back office operations are usually not given a lot of consideration, however, in recent times they have become a major contributor to businesses worldwide.
Organizations do not need to go through the trouble of recruiting and training employees or individuals to carry out these job functions. Some of these job functions are complex and involve vigorous training which can last up to a month. Taking into consideration today’s volatile economy and the high levels of productivity that organizations need to achieve to remain competitive, it is imperative to have an employee being productive right from day one of their being recruited. As an organization you feel the pressure of customer satisfaction and on deliverables especially if you are constantly in the process of training employees on the one hand and have a high attrition rate on the other.
Lean six sigma and other management methodologies have been a guiding force and a basis of benchmarking for most organizations seeking to reduce operating costs and maximize profitability. For instance, through outsourcing back office services organizations can instantaneously look to reduce costs related to Salary, Infrastructure & Logistics, as well as Training and Quality cost.