Outsourcing the backend support services to an external service provider is becoming popular these days. It has a lot of benefits associated with it such as ensuring service quality, reducing risks, and saving a lot of time.

But the most important benefit of why companies prefer to outsource is that it is cheaper than hiring in-house teams. It helps businesses reduce huge operating costs and maximize efficiency.

So, with the rising trend of outsourcing back-office tasks to firms. It becomes extremely important to choose the right firm that provides service at reasonable rates. A clear understanding of pricing structure is essential before outsourcing services to a third-party service provider.

In this blog, we have shared some information about the different pricing models, types of outsourcing services, and various factors that can impact the cost of hiring back-office support.

Types of Back Office Outsourcing Services & Hourly Rates

There are many different types of back-office support services that organizations outsource to firms. 

Below we have mentioned a few important ones that are widely outsourced by organizations all across the globe.

(Approx. figures indicating average hourly costs)

What Impacts The Cost Of Hiring Back Office Support?

Let us discuss the factors that can influence the cost of outsourcing services. The price of the service can change depending on the various concepts mentioned below.

• Complexity 

Work complexity or scope has the biggest influence on BPO process outsourcing costs. With the higher complexity of tasks, the cost of service will also increase.

• Type Of Service

Another factor is the type of service availed. Different types of services are differently priced. It will be less expensive to perform basic data entry than to complete all non-automatable operations.

• Location

The location also comes into account when hiring outsourcing services. So depending upon location the service provider could charge more for the service.

• Staffing

The cost of outsourcing services also depends upon the amount of number of employees that are utilized by your firm. The more resources you hire the more will will have to pay for the service.

Pricing Models For Back Office Support

Below we have mentioned a few important pricing models that service providers currency use.

Staffing Pricing Model:

In it, the clients can contract the resources for a certain time. While the service provider has control over the equipment and workspace, the client can monitor and supervise the work.

Fixed Price Model:

In this pricing model, the service provider has a standard rate for their services. The prices could be hourly, monthly, and annually. So, clients can choose the service plan as per their requirements.

Time & Materials Model:

It is a model in which the client pays only for the time and resources spent on the project. This model is usually preferred for long-term IT support-related projects.

Summary

Back office service providers are capable of providing a wide range of expert services. And, costs may vary according to work, time, and other related factors.

So you might be wondering what the real cost of hiring back-office support is. It can vary depending on various factors including the complexity of work, type of service, staffing, and location. However, the actual price may vary from firm to firm.