Back office administration manages non-customer-facing departments, such as administrative services and data management. It supports front office operations and can be managed remotely or outsourced to save costs. Advances in technology and globalization have expanded options for managing back office administration.
Back office administration is the management of departments of a company that does not interface with the public. The composition of a company’s back office depends on the underlying industry but often includes administrative and office services, technology support and data management. Normally, a company hires staff to manage its back office processes at its premises as an integral part of its operations. A company may use a different management strategy and set up its back office operations in a remote location or outsource some or all of its back office needs to another company to save money.
Management analysis divides business operations into front and back office systems. The front office consists of all departments that interact with customers, such as sales and support. These departments are part of the front office because they present the face of the company. Back Office Operations leads the front of the business and provides support, primarily to the sales effort, but also managing the staff and resources needed to stay in business. Administrative Support, Credits, and Information Technology are examples of departments that comprise a company’s back office.
The different back office operations need to be managed properly to ensure they continue to support the front office. Back office administration is the process of managing these operations so as to achieve business goals and objectives. Typically, each back office department has its own manager, but all back office management may fall to a dedicated manager or even a company’s chief operating officer or other chief executive officer. For example, a college might have a physical facilities manager and a supervisory services manager who both report to a vice president of operations.
Advances in technology and the globalization of labor markets have expanded the functional options for managing back office administration. Companies can now choose to move back office activities to a remote location that has cheaper inputs of resources and manpower, either under their own management or by outsourcing all or part of the back office to a specialist firm. Typically, this type of remote back office administration is found in developing countries. Managing back office administration in this way allows a company to achieve cost savings and some type of operational efficiency, since it no longer has to worry about business operations that are not part of its core revenue generation processes.
Protect your devices with Threat Protection by NordVPN
