Client Verification

[Dadi Bhote]

Hi,

As an offshore Call Center we are faced with situations where we are frequently offered work from clients in the USA and Canada.

I am looking for suggestions on
1) how do we as an offshore center verify the Client's Credentials before taking up the work.
2) if the client does not payup amounts due to the center and the amounts are rather small that it is not possible for the center to file legal action in America, what are the other recources available to such centers.

I am sure several centers have at some time faced such issues and it would be of interest to know hat have been your expoeriences in this.

Look fwd to hearing from you all.

Dadi

[ctaylor]

Dadi,

Your post raised some interesting points that are valid domestically as well as internationally. The following are my thoughts based upon my experience in previous lives as both an outsource provider a client and today as someone who counsels companies regarding contact centres and outsourcing;
1- You must complete due diligence prior to accepting (or placing) and business. Check BBB, though in many locations this will only indentify complaints against the organization, check Hoovers online if the company is publically traded this will give you a lot of details on their size, years in business etc., Check their website for background; clients and partners. If you have any concerns call some of these.
2-Make sure that you are dealing with someone who has the authority to 'bind' the company from a legal perspective. Any agreement yoou sign should indicate that the signing parties "have the authority to bind the company".
3- Define payment terms and schedule in the agreement. Make sure you hold your partner to these terms.
4-Secure Set Up payments in advance, if the partner doesn't meet the first payment challenge then this is a red flag,
5- Define perfomance metrics in the agreement. Identify what is expected specifically- this will avoid discussions regarding whether or not the work was 'of value'.
6-Include a 'mediation' or arbitration clause in your agreement, this will provide both parties with recourse in the event of an impass.

Finally remeber the axiom "if it seems to good to be true, it probably is", understand the benefit your partner gains from the relationship, if it seems dubious be concerned.

If a deal goes sour and you are not paid you will have soome options; Collections, Mediation/Arbitration, courts etc. however all will cost money. You cann also register a complaint with the local (to your partner) BBB, and/or trade association such as the ATA, DMA, CMA. This likely won't help you get paid but it will ensure that others are aware of the companies practices. Of course you should maintain an allowance for 'Bad Debt' on you income statements and in your budgeting, I have seen this as low a zero and as high as 10% of sales.

I hhope that I have added some value to this discussion. if I can be of further assistance please contact me directly at ctaylor@thetaylorreachgroup.com

Colin

[Dadi Bhote]

Thanks Colin,

Yes the pointers are certainly useful. As a rather new entrant into the third party CC business and when we seek to grow these are questions which come up.

In busines we usually take companies for the face value. We do not want to trip up on this.

I am hoping to learn from more experiences like yours.

Gracias.

Dadi

[ctaylor]

Dadi,
Thank you for your kind words...glad I could help.

You may also want to check local affiliations and memberships ...i.e. Chamber of Commerce, Board of Trade, ATA, DMA, CMA memberships etc.

If I can be of further assistance please contact me at ctaylor@thetaylorreachgroup.com

Colin