To Find The Largest Boat You Must Walk To The End Of The Dock

One of the toughest things to do in business is find and vet a new opportunity. Often when we are doing this we do not make the right decision because we did not dig deep enough into the opportunity. We did not walk all the way to the end of the dock. 

If you are considering nearshore opportunities for your collection agency or debt purchase company then you must look at all the different ways you can accomplish that end result. You must be able to find the solution that best fits your company and your clients. This will likely have you looking for control and compliance to your procedures and processes. The loss of control or a breach in compliance could not only effect the nearshore operation but also the parent company and your clients. 

So what are the types of programs that are offered in nearshore operations? Let me shed some light on that topic:

BPO model- This is the traditional model which includes an hourly rate between $12-20 hourly for the agents assigned to the project. The BPO works off of their own software and just do the work assigned. This works well for first party collections and sales. Sales projects may include a bonus per sold unit. In Jamaica this model has clients like Xerox, AT&T, Dish, Amazon and many Fortune 500 companies. 

Contingency model- This model is used in debt collection, sales, insurance enrollments ect. The nearshore operation only gets paid for closed deals it may be a fixed rate for a closed sales deal or a contingency rate for debt collections. The clients here are insurance brokers, various sales organizations and high risk collection agencies working small balance, PDL or older debt. 

Combined hourly plus contingency- This model has an hourly rate per agents from $12-16 per hour and also requires a 10-20% contingency rate for debt collected. This provider may work off your of their software depending on the project. The provider is in charge of the production of the accounts assigned to that project. This model gives control to the nearshore operator and takes decision away form the client. 

Seat model- This model just rents computer stations leaving hiring and staff management to the client. The cost here is around $300-500 per seat monthly. This works best for companies that have a local manager or local HR to help deal with the foreign country laws or companies that have been on the island for years.

Consultant model- This is an hourly rate per agent of around $8-12 and includes everything you need to do business including staff but leaves the management of the staff to the client, this program works off the clients software and uses the clients procedures. The consultant helps with cultural, HR and IT and the client has total control of production. This works well for most agencies and debt buyers due to the fact the client retains control of production. 

So which boat works best for you? Well that depends of what type clients and debt your collecting. If you are doing first party work then BPO or the combined model might be your best options though the consultant model would also provide value. If you are working third party debt for major clients like banks then the BPO model does not work, the contingency model is also not the best choice. The consultant model may be the best here as you will have total control of the staff and the data. If you are doing PDL, small balance or low unit yield accounts the contingency model may be best. 

The next thing to consider is the management of the nearshore operator as there must be a X-pat in charge to get optimum results. The local management just does not have the skills to manage projects like this that is why every operator has X-pats running the operations. That X-pat who lives on the island is imperative to success of the project so make sure you have a good partner. 

If you are looking to set up a nearshore operation give me a call. 

Phillip W. Duff   904-347-5901