Back office outsourcing vs Multi-sourcing
Back office outsourcing is a strategy adopted across industries. The past recession has brought about significant changes in the outsourcing space. These changes include outsourcing services such as customer relationship management, HR administration, recruitment process and procurement outsourcing. All to improve customer focus and transparency in business processes and outsourcing end-to-end processes instead of particular functions in the process. Many organisations are adopting innovative solutions to cut costs while also improving efficiency. It is difficult to deny the economic benefits of back office outsourcing especially since the economic crisis has made cost rationalisation a top priority for organizations of all sizes. The question is no longer whether to outsource back office or not, but whether to outsource it to a captive source or third-party vendor. Equally important is to identify the particular processes that a large, middle, or small sized company should outsource to have maximum positive impact. Multi-sourcing today has also emerged as a major trend, where a primary supplier functions as a contractor and arranges other suppliers, or a group of suppliers, to collaborate to offer a collection of services. BOTH has a unique business model incorporating both sourcing strategies to ensure that clients receive an end to end solution that creates value.