What do you
think is the difference between a company and a freelancer? Why do
entrepreneurs trust established outsourcing companies more than they trust
freelancers? The answer to both these questions is the same: Administration. Freelancers
are not administered and companies mostly have sound administration managed by
dedicated managers.
According to
Wikipedia: ‘Administration is a set of day-to-day activities that are related
to financial planning, record keeping & billing, personnel, physical
distribution and logistics, within an organization’. Even Wikipedia dedicates
its success to administration and claims its role in its own development.
Administration: A Necessity or a Liability
Let’s take
an example of a company comprising talented employees, in which, they are given
complete license to perform their work at their own whims. They can come and go
whenever they want, submit their work at any time and dress the way they
choose. Do you think, just having talented employees will allow this company to
succeed. Absolutely not! Clients of today are extremely demanding and want
their work on time. Even if you are doing excellent work, the clients will hate
it when it is not delivered on time. Coming and going of employees at the time
of their own choice will worsen the situation. And, if you thought dress code was
not necessary, think again. One’s attitude is directly affected by his clothes.
Watching people roam around in slippers and capris will make even the most
talented employees lazy and they will not give their 100%.
Countries like India and Philippines offer quality Back Office Service at reduced rates because of their low currency value. There is pre-existing infrastructure and experts available here who have a considerable amount of experience in offering back office services. By outsourcing your business to a reputed company in these regions, you will reduce your operating cost and also gain from a refined skillset that these employees possess.
Compared
with the above mentioned company, another company with average employees but a
strong administration will perform much better. Even if it does not create
innovative and ground-breaking products, it will do much better in retaining
its older clients.
Through this
example we can see that it is administration that binds a company together and
allows it to work towards a common objective. Without administration there
won’t be any process, no accountability and absolute anarchy.
Importance of Back Office Operations in Administration
Administration
requires proper performance of tasks like accounting, inventory management and
supply-chain management. These tasks can only be performed well if you have a
back office support team at your disposal that knows what it is doing. However,
it is hard to find skillful back office employees who will work on low
salaries. So, if you have limited finances, it is best to make use of Back Office Outsourcing Services.
