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Back office: Difference between revisions

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==See also==
==See also==
Although the term 'back office' connotes a physical place, it is not actually a real place. Commonly mistaken for a <u>real</u> office, many people have tried to solve problems with their IT by trying to find the back office and have obviously been unsuccessful. Others have assumed that there is a back office within their workplace where information is held and controlled from, however again this is not the case. B&Q plc are one of the companies that do not specify this to their staff, and in effect has caused many problems with their customer ordering system as staff have been perplexed as to where the back office is and have been unsuccessful in locating it within the store. So this poses the question, where IS the original back office? And also, why is it the back office when surely it could quite easily be at the front? Or the side?
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* [[Front office]]
* [[Front office]]
* [[Middle Office]]
* [[Middle Office]]

Revision as of 09:09, 21 November 2007

A back office is a part of most corporations where tasks dedicated to running the company itself take place. Examples of back-office tasks include IT departments that keep the phones and computers running, accounting, and human resources. These tasks are often supported by back office systems: secure e-commerce software that processes company information (i.e. a database). A back office system will keep a record of the company’s sales and purchase transactions, and update the inventory as needed. Invoices, receipts, and reports can also be produced by the back office system.

In banking the back office is the heavyweight IT processing systems that handle position keeping, clearance, and settlement. In investment firms, the back office is the administrative functions that support the trading of securities, including recordkeeping, trade confirmation, trade settlement, and regulatory compliance. If used in sales, the back office fulfills customers’ orders and may usually perform the duties involved in customer support call centers.

Sometimes back offices may be somewhere other than the main headquarters of a company. Much of the time they are in suburban areas with cheaper rent, or these functions are outsourced to contractors in other countries. This global back office is referred to as cross-border business-process outsourcing.

The term comes from the building layout of early companies where the front office would contain the sales and other customer-facing staff and the back office would be those manufacturing or developing the products or involved in administration but without being seen by customers. Although the operations of a back office are usually not thought of, they are a major contributor to a business

See also

References