Back office is a separate part of the activities of any company or corporation, the main purpose of which is to support the smooth and proper functioning of them. It represents a range of activities invisible to business partners or customers standing in opposition to the front office, which deals with contacts with contractors, sales and customer service and the most important areas of management at the company's headquarters.
Back office - the invisible side of company operations
Back office is primarily all departments and teams related to production, product development, administration, finance or provision of ICT tools. They can function both at the company's headquarters and be transferred to other companies specialized in a particular field (outsourcing), or even operate in another country within a corporation (insourcing). Nevertheless, it is crucial not only for front office employees, but also for the company as a whole. Back office responsibilities include:
- managing company and customer data and all documentation;
- tax-related issues;
- IT support;
- human resources management;
- financial and accounting processes;
- conducting analysis on customer behavior and preferences;
- controlling the various stages of sales that are not handled by the front office, such as packing and shipping goods.
The back office is the entire administration of the company, which is worth investing in for a number of reasons. First of all, the activities that fall within its scope have a real impact on the way the company is seen on the market, as well as provide a source of reliable information regarding consumer behavior, which is of great importance in attracting new customers and selling goods and services. In addition, it enables optimization related to the work of people in the sales and customer service division, as well as improving the competence of front office employees for the benefit of the entire organization.