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SURE! Blog

In-house Billing vs. Outsourced Billing Service – Which is Right for your Business Operations

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Aug, 2014


When any service provider makes plans to implement a business solution, a common question invariably pops up: Should it be developed in-house or outsourced?

While it may seem straightforward, determining the right solutions approach is a complex process. Tech leaders first need to understand specific business processes and take into account strategic goals, external partners, and required systems support—all of which deserve thorough investigation. They also need to evaluate common business factors—such as project and business scope validation, cost associate with the project, future growth aspects and many more before choosing the right solution approach.

Below mentioned are questions which can ideally lead the service providers to follow the right path towards finalizing the solution approach

Questions that an organization needs to ask before deciding whether to build or buy:
  • Have resources to build an application and all its reports?
  • Have resources to maintain and support a custom-built application and performing change management?
  • Have time to assess all requirements and business processes to ensure that all required processes are being mapped to the new automated solution?
  • Have time and resources to validate and continue to re-validate the custom-built application based on new requirements coming in?
  • Have expertise in evaluating the best approach to set up the IT infrastructure for the new application solution across the organization?
  • Have expertise and resources in setting up an internal helpdesk to support the custom-built application?
  • Need flexibility to model workflows for both corporate and our localsites in one system based on company Best Practices?
  • Have the resources for developing and implementing continuous improvements in the application functionality and technology?
  • Have the know-how on technological advancements and continuously re-inventing to fit to the standards?
  • Want the product depth and functional and external integration without developing it?
  •  Have the time, resources and expertise to build and sustain Quality and Compliance applications?
  • Have time to spend on understanding the standards and fitting the solution to meet the standards?
Challenges associated with an In-House Approach:
  • Retaining talent and original developers
  • Awareness on technology
  • Maintaining Core Competencies
  • Optimization of Costs
  • Managing IT As a Service (software development, 24/7 uptime, security, maintenance etc..)
  • Ability to make changes in a faster pace
  • As software requirements are unique extensive integrations are required which can create bottlenecks
  • Adaptability to new technology and standards changes in the market place.
Disadvantages of In-House development:
  • Require more IT personnel
  • High overhead cost
  • Time consuming
  • Problem with usability of the system
  • High switching cost
  • Difficult to migrate to newer technologies
Advantages of Outsourcing to SURE!:

Cost advantages
The most obvious and visible benefit is the cost savings that an outsourcing approach brings in. You can get your job done at a lower cost and at better quality as well owing to the spread as well as the experience. There is a cost savings of around 60% by outsourcing your work. In addition the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality.

Increased efficiency
When you outsource your business needs to SURE!, we bring years of experience in business practices and expertise in delivering complex outsourcing projects across multiple geographies and industry segments. Thus, we can do the job better with our knowledge and understanding of the domain. This results in efficient implementation and designing faster go-to-market strategies in-addition to  bring in efficiency in the process thereby contributing to the bottom-line of your company.

Focus on core areas
Outsourcing your business processes would free your energies and enable you to focus on building your brand, invest in research and development and move on to providing higher value added services to your end customers thereby resulting in increased customer satisfaction and delight

Save on infrastructure and technology
Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner takes the responsibility of the business processes and hence develops infrastructure for the same.

Access to skilled resources
You no longer need to invest in recruiting and training expensive resources for your business. SURE! takes care of the resourcing needs with our pool of highly skilled resources. The resources employed by SURE! are well educated in the respective business areas and are experienced in handling the business needs of companies that want to outsource.  Further, SURE! employs world class business practices perfected over the years by catering to customers around the globe. Get access to the expertise and capabilities of SURE!.

Faster and better services
Make your service offerings better with high quality deliverables and decrease the lead time it takes for your product to reach the marketplace. Thus you would be faster in getting your ideas converted into products and better at delivering the value-added proposition. You will also be enabled to perform better customer analysis and hence predict the optimum services and plans for the customers thereby reducing churn

One of the most crucial factors determining the outcome of a project is risk-analysis. Outsourcing certain components of your business process helps the organization to shift certain responsibilities to the outsourced vendor. Since the outsourced vendor is a specialist, they plan your risk-mitigating factors better.

Operational Control:
Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be not available within your organization

Reduced Overhead:
Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily Automation of activities is another area where outsourcing can result in significant reduction of overhead costs. Also it will ensure continuous support with respect to ticket monitoring and other day-to-day customer care activities in a much effective manner.

By : Satish Garikipati

Satish Garikipati is a consultant with SURE! (a Magnaquest product). SURE! is an internationally acclaimed player in comprehensive end-to-end Subscription Business Solutions for PayTV, Broadband and Cloud Computing businesses – through deployment of Metered Billing, CRM, Service Fulfillment, Value-Added Services, and Managed Services.

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