Future Of Back Office
The back office can be thought of as the part of a company responsible for providing all business functions related to its operations. Despite their seemingly invisible presence, back-office personnel provide essential functions to the business. The back office is an essential part of any firm and associated job titles are often classified under "Operations." Their roles enable and equip front-office personnel to perform their client facing duties. The back office is sometimes used to describe all jobs that do not directly generate revenue.
Example of Back-Office
Today, most back-office positions are located away from company headquarters. Many are located in cities where commercial leases are inexpensive, labor costs are low, and an adequate labor pool is available.
Alternatively, many companies have chosen to outsource and/or offshore back-office roles to further reduce costs. Technology has afforded many companies the opportunity to allow remote-work arrangements, in which associates work from home or offices located far away from center of city. Benefits include rent savings and increased productivity. Additionally, remotely employing back-office staff allows companies to access talent in various areas and attract a diverse pool of applicants. Some firms offer incentives to employees and applicants who accept remote positions. The cost savings can be significant when employing many remote professionals or freelancers.
Future of back office in banks
Remember the good old bank clerk who used to update your passbook? The fact that he is hardly seen these days explains banking industry's biggest Automation. Industry has endorsed this predicament with a disturbing figure. Developments in technology could see some 30 percent of banking jobs disappearing in the next few years. Artificial intelligence and robotics will reduce the need for staff in roles such as back-office functions. Traditional jobs such as passbook updating, cash deposit, verification of know-your-customer details, salary uploads are going digital increasing job redundancies. The likes of Axis Bank, ICICI Bank and HDFC Bank are pushing the boundaries of technology by implementing robotics to centralise operations and for quicker turnarounds in things like loan processing and selling financial products to customers. This is reducing the need for a manual worker at the back end.
The Indian banking industry has been witnessing a slow transition from people-driven to machines controlled in the past few years. The technological development, which has made banking easier, has also led to a slowdown in the hiring of staff at banks. Although t here have been hirings, the nature of skill sets required is changing with a lot more focus on the front end talent. Low-end back office jobs like data entries will no longer be required in the next few years. The rate of growth of new jobs in the banking sector will definitely come down. “Low-skill workers do not have a bright future. They will have to reskill or perish.The bank has not only been slowing branch expansion and hirings, it has also been reducing overall headcount even as it remains the gold standard of Indian banking. It's not just the private-sector banks, even the public sector is trying robotics to centralise operations and has turnarounds which reduces the need for manual workers