Back office outsourcing has moved from a cost play to a capability decision. The strongest cases combine both.
Understand the real cost of in house
Compare full cost including salaries, benefits, recruitment, software, training, supervision and the risk of key person dependency.
Decide what stays in house
Judgement, relationships and decision rights stay. Transaction processing, reconciliation and routine reporting are natural candidates to move.
- Retain financial control, policy and decision making
- Move high volume transaction processing
- Define escalation and approval boundaries clearly
Build the transition properly
Document processes, agree service levels, run a parallel period and hold a formal handover. Rushed transitions cause the problems people associate with outsourcing.
Measure the service
Agree turnaround times, accuracy standards and reporting deadlines up front, then review performance monthly.
Key takeaways
- Compare full in house cost, not salary alone
- Keep judgement and decision rights internal
- Invest in documentation and a parallel run
- Manage the arrangement against agreed service levels
Related service
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