INHERENT PROBLEMS WITH OUTSOURCING BILLING

Outsourcing deals are complex and lend themselves to misinterpretations between the deal team and operating team. As time passes interpretations become lost and contractual nuances lose meaning or are forgotten. Due to the enormous amounts and complexity of data consumption metrics are difficult to validate, and most underlying data is not scrubbed if it exists at all.

Combine these inherent problems with the fact that most companies don’t have resources dedicated to these complex issues, and the day-to-day problems get in the way of billing issue resolution. Governance is frequently separated from other activities, thus preventing the technical issues that have billing impact (e.g., refresh delays, transition problems, undelivered services, SLA failures) from being identified.

DESCRIPTION OF OUTSOURCING BILL AUDIT SERVICES

Review and validation of all invoices 
(contract compliance, rate, consumption, taxes)

Interface with Outsourcer on invoicing questions and issue resolution.

Document all issues for inclusion in governance or dispute processes.
(make recommendations for payment or withholding, draft required documents)

Identify Cost Savings Opportunities. 
(including demand management, utilization changes, and contract interpretation)

Develop and produce summary reports 
(payments made or disputed, credits received, and payments forecasted)

Provide general assistance, advice and counsel

CLIENT BENEFITS OF OUTSOURCING BILLING AUDIT

Saves money by providing more efficient multi-disciplinary oversight than can be provided internally and actively identifing cost savings that are hard to find and realize without specific expertise.

Does not poison the outsourcing relationship over minor billing issues, while keeping you focused on the big picture, by identifiying problems early and avoiding major billing wars to keep your relationship healthy.

Formally documents positions that will survive past the day when the individuals who framed the deal have departed and that will create valuable performance and issue trends, provides responsible oversight of large expenditures that can stand up to internal and external audit scrutiny

Reclaiming Expected Savings & Reinforcing Fiduciary Control