Tuesday, April 10, 2012
The accounts receivable management (ARM) industry has noted considerable upticks in demand in recent years, as the global economic downturn forced consumers and businesses to rely on credit to finance their spending.
This, in turn, led to a swelling of debt loads, particularly in the U.S. and Canada. In order to recover these debts, many collectors and indebted organizations have turned to business process outsourcing.
Ron Rittenmeyer, an expert in the field of outsourcing and accounts receivable management, recently told Forbes magazine that key to successful outsourcing of debt collection is developing a strategy for how processes are hosted.
"Not only what you do - not just having an expectation to perform - but how you perform. Why are these laws being written?" Rittenmeyer told the source. "And why is [ARM] becoming an area of interest for government regulators and various other groups? I think it's because people realize that there are individuals out there who are having [financial] problems."
Managers need to create teams of professionals who are able to provide services that the industry provides, and to have a level of "granularity" in how they approach a problem, which means understanding that one size does not fit all, he added.