Back office jobs refer to the operations of organizations or companies that provide administrative support services or tasks devoted to running the company per se. The term “Back office” evolved from the building layout of earlier organizations in which support services are usually at the back end of the building while the front office or front line would constitute the services that directly interacts with clients such as the sales or marketing staff. While back office operations are not often popular, they are nevertheless important component for a business to function and survive.
Some of the back-office operations included the management information systems department, the accounting system, and the human resource administrative system. The MISD for instance is a back office operations department because its task pertains to maintaining information and communications system running smoothly to ensure flawless flow of information between customers and the company and among stakeholders of the company such as suppliers, employees, management, and shareholders. It also maintains the database or that which contains all the information used inside the company.
The accounting system is also a back office operation and is mainly involved in the processing and keeping records of all the financial information of the company. These procedures included keeping company records (sales and purchase transactions), update the inventory or merchandise of the company, preparing the payroll of the employees, budget preparation, among many others.
The administrative functions involves human resource record keeping, the recruitment of employees, training and development of personnel, assignment of duties, facilitation of employee benefits, scheduling and monitoring of employees, among others.
Back office jobs may not have a direct contact with the company’s clients and customers but their functions definitely have a direct impact on them. For instance, maintenance of the company’s information system may not directly affect the decision of a client to avail or not the services or products offered by the company but if the information system is down, the ability of the sales personnel to contact clients is definitely affected.
Accounting matters may not concern the customers of the company but mistakes in record keeping like customer accounts will definitely cause complaints that will taint the image of the company. Finally, the recruitment of employees may not matter to customers but the quality of employees hired by the company will definitely affect how they are able to effectively interact with customers.
With the advent of business process outsourcing, many multinational companies are now outsourcing their back office operations to reduce their costs. Aside from the advantage of reducing their expenses, which ultimately translates to increased revenues, outsourcing back office operation has also major advantage of freeing the resources and time of the company from traditional support procedures so that it can focus on its core functions of delivering their products and service or conducting research and development for improving the same. Because of this, many BPO business operate in the Philippines had also emerged to provide back office operations services of foreign companies particularly in information technology, accounting and administrative functions.
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