Front Office vs Back Office Differences
We often hear the terms front office and back office while referring to the official works and different responsibilities. Both are different areas of the building area or the room where the employees of an office job. Both front offices vs back offices are those places where the employees perform clerical jobs or professional activities and other activities related to the smooth running of the business.
What is Front Office?
The section of the office which takes on the responsibility of interacting with the clients of the company be it existing or new is known as a Front office. This section also handles the tasks of sales and marketing services along with providing after-sales services. The employees should possess good skills to be a part of this team. The employees who are working in the front office directly interact and have dealings with the customers of the company. They are ones who have the duty of taking and placing orders on behalf of the customers and ensures that the customers are highly satisfied with the services provided. Since it handles the customer satisfaction this section is highly responsible for the growth in revenues of the company.
What is Back Office?
The back office section of a company mainly consists of the administration department. The employees in this section do not have direct interaction with the customers of the company. This section ensures that all the operations are performed seamlessly so that the daily business is run smoothly. It helps in daily administration work along with development and manufacturing of the products and services. The back office employees though have no direct contact with the customers are an integral part of the company as they are responsible for handling daily activities.
Front Office vs Back Office Infographics
Here we provide you with the top 8 difference between Front Office vs Back Office
Front Office vs Back Office Key Differences
The followings are the key differences between front office vs back office:
- The front office of a company handles direct communication with existing as well as new customers whereas the back office has no interaction with the customers.
- The front office has sales and marketing departments whereas the back office has the admin department, finance and accounting department, HR department, warehousing etc.
- The main responsibility of the front office is to generate the revenue and also increase the revenue of the company whereas the duty of the back office is reducing the overall costs for the business.
- The front office helps in developing the strategy to capture new deals whereas the back office helps in ensuring compliance management.
- The front office tries to generate new deals so that the business increases whereas the back office focuses on the manufacturing of goods and services.
- An important point of difference between front office vs back office arises when salary come into play. Since the front office employees are the ones who generate the revenue for the organization the salary earned by the front office employees are higher than employees in the back office.
- Though the front office employees try to think that they are the ones who are doing the most important function, the reality is they are highly dependent on the workings of the other side as they ensure that all the processes are run well, be it admin, HR or IT. Moreover, over the years the roles of some function of the back office have evolved exponentially. For example earlier the role of IT was mostly confined to hardware’s but nowadays in investment banks, the IT team comprises of people who develop important technical infrastructure which enables the core operation.
Front Office vs Back Office Head to Head Differences
Let’s now look at the head to head difference between Front Office vs Back Office
|Basis – Front Office vs Back Office||Front Office||Back Office|
|Definition||It is a section which directly interacts with customers.||It is a section which handles daily administration functions.|
|Customer involvement||It has direct involvement and interaction with customers.||It has no direct involvement or interaction with the customers.|
|Strategy||It helps in strategy development.||It is responsible for HR functions and compliance management.|
|Core function||It helps to increase demands and sales.||It helps in the manufacturing of products and services.|
|Responsibility||Its main function is to look after sales and marketing and the after-sales services.||Its main function is to look after the daily admin processes so that the business runs smoothly.|
|Salary||Since the front office employees are the ones who generate the revenue for the organization the salary earned by the front office employees are higher||Generally lower than front office employee for most of the functions, though some functions are evolving now a day’s which can match the other side.|
|Focus area||It aims at increasing the revenue of the business.||It aims at cost reduction.|
|Interactions||Its main duty is selling and interacting with the clients of the company.||It helps in support functions like IT management, Finance, and accounting, warehousing etc.|
Both front offices and back office play their important roles in order to grow the organization and also make sure all the operations within the organization are running seamlessly. Though traditionally it used to be that the front office employees are the ones who generate revenues and gets paid better, the gap is gradually and surely decreasing in most of the organization with the use of more and more technology over the years. A lot of functions done by the clients are executed with the help of technology mainly for the whole BFSI sector. This led to growing prominence of the back office employees and also enabling them to contribute more in revenue generation part of the business.
This has been a guide to Front Office vs Back Office. Here we also discuss the top differences between Front Office and Back Office along with infographics and comparison table. You may also have a look at the following articles –