More Demand For Outsourcing

Dennis Luther
TAWPI 2008 Forums & Expo Review

In an industry currently undergoing radical changes – the migration to electronic payments, the convergence of payments and document processing, and mounting regulatory pressures, to name a few – outsourcing stood out as the hottest topic at last month’s TAWPI 2008 Forums & Expo in Orlando.

Outsourcing has finally shaken the perception that companies must sacrifice quality, timeliness and control in exchange for third-party services. And companies understand that not all outsourcers are shipping mission-critical images to uncontrolled, faraway operations. As I heard over and over again at this year’s TAWPI conference, more companies recognize outsourcing as a strategic tool to help them streamline operations, enhance processing capabilities and focus on core competencies.

As economic volatility, shrinking check volume and ever-increasing customer demands place more pressure on the operations of TAWPI members, demand for outsourcing will rise considerably. And we’ll see more interest in hybrid outsourcing relationships, where clients perform certain tasks (e.g., data capture or exceptions review, usually with hosted solutions), while a processor handles the rest.

Certainly, remittance processing outsourcing is reaching a tipping point. But there’s also growing interest in outsourcing document handling for a wide variety of applications, from donations and orders to insurance claims and healthcare documents. One example of this is remote payment capture, which complements payments and document outsourcing with a solution for stray documents. Another example of modern outsourcing is Explanation of Benefits (EOB) processing, an otherwise cumbersome process that outsourcers can automate by combining payments and document processing with advanced data capture. As organisations outsource their document handling, I also believe they’ll look for ancillary services, such as conact centres, lettershop, order fulfillment and Website hosting and development to complete their data management requirements and integrate all of their customer, donor or member interactions.

Is Outsourcing Right for You?

To be sure, there are significant cost advantages to outsourcing, particularly in a volatile economy where companies are loath to make capitalinvestments. Outsourcing offers variable expense and lower overhead. But when it comes to outsourcing, companies should look before they leap. To ensure ROI, they must consider many different factors and ask themselves the following questions:

• Is there a cost savings?
• How can we improve by outsourcing?
• What are the regulatory restraints that must be considered by outsourcing?

The answers to these questions should help you determine which direction your company should go. Outsourcing does not have to be the “Big Bad Wolf” knocking at your door. It can be a solution for maximising workflows, improving operations ROI and leveraging new customer data tools.

Based on the buzz at TAWPI’s Expo, many companies already have determined that outsourcing is for them.