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Abstract
Most would agree that automating manual processes via collections software is a prudent business decision. In fact, according to a recent survey conducted by Aceva Technologies, the use of an effective collection software tool will reduce manual processes by an average of 11%, lowering overall collection recovery costs by 23%.
With the need to use collection software to increase efficiency and lower costs, the question now remains, which model is right for your company - build, buy or borrow? The following will explore the advantages and disadvantages of each option:
* Build - In-house development and designed collection software applications
* Buy - Lease or purchase a collection software tool from a software vendor
* Borrow - Use the collection software tools provided by an outsourcing vendor
Build
Though the cost of building an in-house tool is higher than leasing the product from an outside vendor, there are several other factors that need to be considered. An in-house tool is customized to fit your current processes, and existing business model. If designed and constructed properly, a fully customized program will generate additional long term efficiency and will be easier to implement since the tools are developed around current processes already inherent internally. The average amount of time to build an in-house tool is approximately two years, but additional time may be required for implementation depending on the number of software glitches or bugs that need to be repaired and re-tested. The in-house design is only effective over the long term if your company is dedicated to the continual on-going programming resources required to keep the tool innovative and reflective of the current and constant changing business process demands.
Though the cost of developing an internal package has dramatically decreased over the past several years through the use of offshore resources, the additional challenges to an in-house designed...