The Administrative Outsourcing Market is projected to experience a steady growth rate of 5.29% annually between the years 2023 and 2027, culminating in a total market volume of approximately US$74.00bn by 2027. While it may not be the fastest-growing IT services sector, administrative outsourcing continues to demonstrate consistent and reliable growth. This growth can be attributed not only to the increasing digital transformation of companies, but also to the widespread adoption and expansion of software and hardware technologies worldwide.

In the following article, we will delve into the topic of administrative outsourcing. We will examine the definition and scope of administrative outsourcing, discuss its various benefits, and offer tips and best practices for those considering outsourcing administrative tasks.

Table of Contents

What is Administrative Outsourcing?
Administrative Outsourcing Services
Benefits of Outsourcing Administrative Services
How Does Outsourcing Administrative Services Look Like?
Tips and Best Practices of Outsourcing Administrative Services
Administrative Outsourcing: Success Story

What is Administrative Outsourcing?

Administrative outsourcing refers to the practice of delegating certain administrative tasks or responsibilities to an external third-party service provider. This outsourcing of administrative tasks can include functions such as bookkeeping, payroll processing, customer service, data entry, human resources, and other administrative duties that are essential but do not require an on-site presence.

Administrative Outsourcing Services

Bookkeeping

Bookkeeping is the act of precisely documenting and overseeing the financial dealings that take place within a company. This involves various tasks, such as keeping track of sales, expenses, income, and payments. The information gathered is then organized and presented in financial statements that offer insights into the financial position of the business. 

Appointment Scheduling

Appointment scheduling refers to the process of booking and managing appointments with clients or customers. It involves using various methods to identify potential leads and qualifying them to ensure the client’s sales team focuses on the most promising leads.

Data Entry

Data entry is a form of administrative work that entails entering data into computer systems using various methods such as typing and voice recording. It may also include transcribing data from recordings or reviewing data for deficiencies or errors. 

Customer Support

Customer support is a set of comprehensive services that aim to aid customers in using products and services effectively. This includes assisting customers in planning and optimizing their product usage, providing support during installation, delivering training to help customers use a product effectively, and providing assistance in resolving any problems that may occur during the product use. 

Email Management

Email management is the systematic control and organization of electronic messages that are sent and received by an organization. This encompasses establishing and implementing procedures and systems to manage the inflow of emails, categorizing and prioritizing emails based on their urgency and importance, responding to messages in a timely and professional manner, and ensuring the security and confidentiality of sensitive information transmitted via emails.

Payroll

Payroll is a structured and organized process that involves providing monetary compensation to a company’s employees for the work they have completed. This usually involves collecting a list of employees who need to be paid, monitoring the number of hours worked, calculating employee payments, ensuring timely and accurate distribution of salaries, and maintaining records of payroll expenses.

Benefits of Outsourcing Administrative Services

Outsourcing administrative tasks can provide a range of benefits beyond cost savings and scalability. For example, outsourcing allows businesses to focus on core competencies, rather than spending time and resources on non-core administrative tasks. This can help increase productivity and efficiency, leading to improved business performance and growth.

Outsourcing administrative tasks to a specialized service provider can also ensure that these tasks are performed by experts with the necessary skills and knowledge. This can help to ensure accuracy, quality, and compliance with relevant regulations and standards.

Outsourcing can also provide access to the latest technology and software for administrative tasks, without the need for businesses to invest in expensive equipment or software themselves. This can help businesses stay up-to-date with the latest tools and technologies, leading to improved performance and productivity.

Another benefit of outsourcing administrative tasks is that it can provide greater flexibility and agility in responding to changing business needs. Service providers can often adjust their services to meet the evolving needs of their clients, allowing businesses to adapt quickly to new challenges and opportunities.

How Does Outsourcing Administrative Services Look Like?

Let’s say you have a small company and you’ve been managing your payroll in-house. However, as your company grew, it became increasingly difficult to keep up with the workload. Your HR team was spending long hours each week manually processing payroll, which was taking away from their other important duties. They were making frequent errors, which led to employee complaints and a decline in morale.

As a result, you decide to outsource your payroll to a third-party service provider. The outsourcing company started by analyzing the company’s existing payroll processes and identifying areas for improvement. They then worked with you to define the scope of work and establish clear performance metrics to measure success.

Next, the outsourcing company implemented a range of process improvements. They automated certain tasks, such as data entry and tax calculations, which significantly reduced the risk of errors. They also standardized processes, which made it easier to manage the payroll across different locations and departments. They consolidated operations, which helped to streamline the payroll process and reduce the workload for the HR team.

In addition, the outsourcing company provided you with access to a cloud-based payroll software platform. This platform allowed employees to view their pay stubs and tax forms online, which eliminated the need for paper-based records. It also provided you with real-time access to payroll data, which helped them to make more informed decisions.

This is a specific example of how partnering with an outsourcing company can lead to substantial enhancements in your administrative functions, specifically in areas such as payroll processing. In another example, Sourcefit helped one of Australia’s leading HR and Payroll services firms with their data security and infrastructure reliability. By outsourcing, the company was able to cut costs and improve competitiveness.

Tips and Best Practices of Outsourcing Administrative Services

Below are some specific tips and best practices for outsourcing administrative services:

Define your objectives

Clearly define what you want to achieve by outsourcing administrative tasks. Identify the specific tasks you want to outsource and the desired outcomes.

Set clear expectations

Clearly define the scope of work, timelines, and deliverables. Make sure your service provider understands your expectations and has the resources to deliver quality work.

Establish communication protocols

Establish regular communication channels and protocols to ensure that both you and your service provider are on the same page. Regular check-ins, progress reports, and updates can help ensure that the project stays on track.

Protect your data

Make sure your service provider has robust data protection measures in place to safeguard your sensitive information. Consider using secure file sharing platforms and signing non-disclosure agreements.

Provide feedback

Regularly provide feedback to your service provider on their performance. This will help them to continuously improve their services and ensure that you are satisfied with the results.

Continuously monitor and evaluate

Continuously monitor and evaluate the performance of your service provider. This will help you identify any issues early on and make adjustments as needed to ensure that the project is successful.

Administrative Outsourcing: Success Story

One well-known success story of administrative outsourcing involves IBM. In the 1990s, IBM was struggling financially, and their administrative processes were inefficient and costly. In an effort to streamline operations and reduce costs, IBM collaborated with an outsourcing company to identify specific administrative tasks that could be outsourced, such as HR and payroll processing, and customer service.

The third-party provider helped establish performance metrics to track the success of the outsourcing initiative. The outsourcing company then implemented a series of process improvements to enhance efficiency and streamline operations, such as automating certain tasks, standardizing processes, and consolidating functions.

As a result of the outsourcing initiative, IBM was able to reduce their administrative costs by billions of dollars and improve the efficiency of their operations. This allowed them to refocus their resources on their core business and drive innovation in their industry. The outsourcing company continued to work with IBM to identify further opportunities for cost savings and process improvements, leading to a long-term partnership between the two companies.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth Champion,  HR Asia Awards, among others.

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