Page 129 -

W h a t Y o u C a n D oh a t Y o u C a n D o
P
100 P a r t I I I : a r t I I I : W
100

Outsource Service Provider Size Billing and Payment Terms
Large Normally work under advance payment arrangements.
They usually require 15 or 30 days’ worth of payment in
advance.
Mid-size and small Billing normally done weekly with payment due after a
week. Rates are based on production time, which is
defined as the time a customer service agent actually
spends logged onto the phone system and can take
calls. A payroll hour usually provides about 45 minutes of
production time.

TABLE 5-2 Payment Terms for Different-Sized Outsourcing Service Providers

Maintenance
Once you have a plan in place, have selected a provider, everyone has been trained, and the
program is in motion, you need to keep everything running smoothly—and communication
is key to this effort.
Make sure the provider calls you each morning to check in. Even if there’s no news to
report, you can at least ensure you have consistent information coming in, and you will be
able to keep up on arising issues.
Reporting is particularly important, especially if you have metrics that are granular
enough to show the work of specific agents. If the metrics look unusual, you can investigate
and find out what’s going on.
Ensure that the service provider has an action plan in place in case (and when)
problems arise.

Finding a Service Provider
In order to find a good service provider, follow these steps. The tips they contain can help
you find a good match for your needs.

• Research, research, research Ask companies you know for their recommendations.
Nothing sells like a good recommendation. You can also find out about providers
that aren’t so good, and you’ll know to steer clear of them. You can also ask potential
providers for client references. You can then talk to these references and find out how
effective the companies are.
• Pursue compatibility Find a company that understands your particular needs.
Develop a contract that allows you to tweak the agreement as changes occur (they will).
• Set your standards Because your company will be represented by another
company outside of your direct control, you need to establish standards by which
the other company will behave. List these details in the contract, and check up on
the service provider from time to time to make sure they’re being followed.